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BLUE DOLPHIN ENERGY CO (BDCO)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a return to profitability with net income of $2.244M ($0.15 EPS) on revenue of $83.692M; however, results were materially lower versus Q1 2024 due to softer refining margins (gross profit $6.073M vs $11.188M YoY) .
  • Versus the prior quarter (Q3 2024), revenue improved ($83.692M vs $82.109M) and earnings swung from a loss to profit (EPS $0.15 vs -$0.34), aided by the absence of Q3’s inventory impairment and improved throughput/margins .
  • Liquidity strengthened: cash rose to $2.3M and working capital deficit improved to -$14.5M from -$19.1M at year-end 2024, indicating near-term balance sheet progress .
  • Management emphasized operational optimization (maintenance, product slate selection, cost vigilance) amid a “cloudy and volatile” macro; no formal guidance was provided, limiting near-term visibility .
  • Potential stock reaction catalysts: continued refining margin recovery, execution on maintenance optimization, and further working capital improvement; offsets include margin volatility and any recurrence of impairments seen in 2024 .

What Went Well and What Went Wrong

What Went Well

  • Returned to profitability sequentially: Q1 2025 EPS $0.15 vs Q3 2024 EPS -$0.34; net income $2.244M vs Q3 2024 net loss -$5.000M .
  • Revenue improved sequentially: $83.692M in Q1 vs $82.109M in Q3, while consolidated EBITDA was $5.057M (refining segment EBITDA $4.923M), pointing to positive refining margins captured in the quarter .
  • CEO highlighted focus on fundamentals and margin maximization: “optimizing operations through maintenance activities, product slate selections, and cost vigilance” despite macro volatility .

What Went Wrong

  • Material YoY compression: net income $2.244M vs $6.624M and EBITDA $5.057M vs $10.535M in Q1 2024, reflecting less favorable refining margins and lower revenue vs the prior-year quarter ($83.692M vs $91.022M) .
  • Full-year 2024 context shows margin/cost headwinds (annual net loss -$8.636M) driven by less favorable refining margins, lower sales volume, maintenance turnaround expenses, and inventory impairments ($8.3M) .
  • No formal guidance disclosed, reducing visibility for investors on revenue, margins, and segment trajectories in subsequent quarters .

Financial Results

Quarterly Trend vs Prior Periods

MetricQ2 2024Q3 2024Q1 2025
Revenue ($USD Millions)$69.659 $82.109 $83.692
Net Income ($USD Millions)-$6.350 -$5.000 $2.244
Diluted EPS ($USD)-$0.43 -$0.34 $0.15

Year-over-Year (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$91.022 $83.692
Gross Profit ($USD Millions)$11.188 $6.073
Consolidated EBITDA ($USD Millions)$10.535 $5.057
Net Income ($USD Millions)$6.624 $2.244
Diluted EPS ($USD)$0.44 $0.15

Segment Breakdown (EBITDA)

Segment EBITDA ($USD Millions)Q1 2024Q1 2025
Refinery Operations$10.221 $4.923
Tolling & Terminaling$1.177 $1.181
Corporate & Other-$0.863 -$1.047
Total Consolidated EBITDA$10.535 $5.057

KPIs and Balance Sheet Indicators

KPIDec 31, 2024Mar 31, 2025
Cash & Restricted Cash ($USD Millions)$1.1 $2.3
Working Capital ($USD Millions)-$19.1 -$14.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company GuidanceQ2/Q3 2025N/AN/ANo formal guidance provided in press releases/8-Ks

Earnings Call Themes & Trends

Note: No earnings call transcript available for Q1 2025.

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q1 2025)Trend
Refining MarginsQ2: Lower refining margins; negative adjusted EBITDA driven by $5.5M inventory impairment and $1.2M turnaround costs . Q3: Softer refining margins and lower sales volume; additional $1.9M inventory impairment .“Effectively captured positive refining margins” in Q1; macro “cloudy and volatile” .Improving sequentially; still below prior-year levels.
Maintenance/OperationsQ2: Completed maintenance turnaround at Nixon; focus on optimizing operations . Q3: Turnaround and impairments pressured results .Ongoing focus on maintenance optimization and product slate selection .Continuous operational focus; benefits emerging post-turnaround.
Liquidity/Working CapitalQ2: Working capital improved to +$18.8M; debt reduction . Q3: Working capital +$9.9M; reliance on balance sheet .Working capital deficit improved to -$14.5M from -$19.1M; cash increased .Mixed: year-end deficit improved in Q1; overall liquidity trend volatile across 2024–2025.

Management Commentary

  • “Blue Dolphin effectively captured positive refining margins in the first quarter of 2025…we will continue to focus on the fundamentals – optimizing operations through maintenance activities, product slate selections, and cost vigilance – to maximize refining margins.” — Jonathan P. Carroll, CEO .
  • “While third quarter earnings were less than planned due, in part, to soft refining margins, we relied on our balance sheet to support operations.” — Jonathan P. Carroll, CEO (Q3 2024) .
  • “During the second quarter, we successfully completed a maintenance turnaround of the Nixon facility, increased working capital, and significantly decreased current debt.” — Jonathan P. Carroll, CEO (Q2 2024) .

Q&A Highlights

  • Not available; no Q1 2025 earnings call transcript was found [ListDocuments search returned none].

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable for BDCO; therefore, no comparison to estimates is provided. Values retrieved from S&P Global.
MetricQ1 2025 ConsensusNotes
Primary EPS Consensus MeanN/A*No coverage/consensus retrieved for period. Values retrieved from S&P Global.
Revenue Consensus MeanN/A*No coverage/consensus retrieved for period. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential recovery: BDCO moved from a Q3 2024 loss to Q1 2025 profitability, with EPS improving from -$0.34 to $0.15 and revenue rising to $83.692M .
  • YoY softness persists: Q1 2025 EBITDA ($5.057M) and gross profit ($6.073M) were roughly half of Q1 2024 levels, underscoring continued margin pressure vs last year .
  • Operational execution is central: management is prioritizing maintenance and product slate optimization to support margins; monitoring throughput and slate decisions is key to near-term performance .
  • Balance sheet watch: cash increased to $2.3M and working capital deficit narrowed to -$14.5M; additional improvement could de-risk operations, while reversals would be a cautionary signal .
  • Impairment risk in backdrop: 2024 saw $8.3M of inventory impairment, and Q2/Q3 specific impairments weighed heavily; limited impairments in Q1 2025 helped the sequential swing—investors should track any recurrence .
  • Guidance scarcity: absence of formal guidance raises uncertainty; investors must rely on operational KPIs and margin signals to gauge outlook .
  • Trading implications: near-term sentiment likely pivots on reported refining margin strength and liquidity traction; surprises (positive or negative) in margins or maintenance outcomes could drive disproportionate stock moves in a thinly covered name .