• Reported gross profit of $1.9 million and $22.4 million for the three and six months ended June 30, 2023, respectively.
• Reported net loss of $1.6 million, or $0.10 per share, and net income of $15.2 million, or income of $1.02 per share, for the three and six months ended June 30, 2023.
• Further strengthening of the balance sheet, reducing long-term debt, net and associated interest payable by $2.7 million, or 4.6%, as of June 30, 2023 compared to December 31, 2022.
• Continued safe operation of the Nixon refinery under extreme, heat-related weather conditions.

HOUSTON, TX / ACCESSWIRE / August 15, 2023 / Blue Dolphin Energy Company ("Blue Dolphin") (OTCQX:BDCO), an independent refiner and marketer of petroleum products in the Eagle Ford Shale region, announced its financial results for the second quarter of 2023.

For the three months ended June 30, 2023, gross profit totaled $1.9 million compared to gross profit of $16.8 million for the three months ended June 30, 2022. Blue Dolphin reported a loss of $1.6 million, or a loss of $0.10 per share for the three months ended June 30, 2023 compared to net income of $13.4 million, or income of $0.97 per share, for the same period a year earlier. The $15.0 million, or $1.07 per share, decrease in net income between the periods was the result of: (i) significantly weaker refining margins, (ii) slightly lower refinery throughput, production, and sales volumes, and (iii) a buildup of inventory due to a planned turnaround, cooling equipment fabrication delays, and unsafe weather conditions.

For the six months ended June 30, 2023, gross profit totaled $22.4 million compared to gross profit of $23.4 million for the six months ended June 20, 2022. Net income totaled $15.2 million, or income of $1.02 per share for the same six month period in 2023 compared to net income of $16.9 million, or income of $1.27 per share, for the same period a year earlier. The $1.7 million, or $0.25 per share, decrease in net income between the periods was the result of significantly weaker refining margins, slightly lower refinery throughput, production, and sales volumes, and a buildup of inventory in Q2 2023.

"Although second quarter 2023 results were impacted by considerably lower refining margins and a challenging operating environment, our first half 2023 performance remained strong," said Jonathan P. Carroll, Chief Executive Officer of Blue Dolphin Energy Company. "So far in the third quarter 2023, refining margins have reversed course, rebounding higher and setting the stage for what we believe will be a brighter current quarter."

Results of Operations

Reconciliation of Segment Gross Profit

(1) General and administrative expenses within refinery operations includes the LEH operating fee, related party, other operating expenses, and accretion of asset retirement obligations.

Financial Position, Liquidity, and Working Capital
As of June 30, 2023, Blue Dolphin had $0.6 million of cash and cash equivalents compared to $0.5 million at December 31, 2022. Blue Dolphin had $16.5 million and $45.2 million in working capital deficits at June 30, 2023 and December 31, 2022, respectively, representing a $28.7 million improvement. Excluding the current portion of long-term debt, Blue Dolphin had $20.7 million and $2.1 million in working capital at June 30, 2023 and December 31, 2022, respectively, representing an improvement of $18.6 million. The significant improvement in working capital over the past six months was due to decreased long-term debt, current portion and an improvement in accounts payable.

Mr. Carroll continued, "During the second quarter of 2023, we entered into forbearance agreements with two additional lenders. As a result of lender payments, Blue Dolphin decreased net debt and associated accrued interest by $2.7 million during the first half of 2023."

(1) Blue Dolphin has 2,500,000 shares of preferred stock, par value $0.10 per share, authorized. At June 30, 2023 and December 31, 2022, there were no shares of preferred stock issued and outstanding.

About Blue Dolphin
Blue Dolphin is an independent downstream energy company operating in the Gulf Coast region of the United States. Subsidiaries operate a light sweet-crude, 15,000-bpd crude distillation tower with more than 1.25 million bbls of petroleum storage tank capacity in Nixon, Texas. Blue Dolphin was formed in 1986 as a Delaware corporation and is traded on the OTCQX under the ticker symbol "BDCO". For additional information, visit Blue Dolphin's corporate website at

Contact:
Jonathan P. Carroll
Chief Executive Officer and President
713-568-4725

Cautionary Statements Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements relating to Blue Dolphin's operations that are based on management's current expectations, estimates and projections about the oil and gas industry. Words or phrases such as "anticipates," "expects," "intends," "plans," "targets," "advances," "commits," "drives," "aims," "forecasts," "projects," "believes," "approaches," "seeks," "schedules," "estimates," "positions," "pursues," "may," "can," "could," "should," "will," "budgets," "outlook," "trends," "guidance," "focus," "on track," "goals," "objectives," "strategies," "opportunities," "poised," "potential," "ambitions," "aspires" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors, many of which are beyond the company's control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Blue Dolphin undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

For a discussion of risk factors that could cause actual results to differ materially from those in the forward-looking statements, please see the factors set forth under the heading "Risk Factors" in Blue Dolphin's 2022 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.

SOURCE: Blue Dolphin Energy Company