Blue Dolphin Energy (BDCO -4.60%), a small independent refiner and terminal operator in Texas, released its second quarter 2025 results on August 14, 2025. The most notable headline is a sizeable revenue drop to $56.6 million (GAAP), compared to $69.7 million (GAAP) in the prior-year quarter, an 18.7% decline. However, the company reported a significantly smaller net loss of $1.7 million, or $(0.12) per share (GAAP), versus $(0.43) per share (GAAP) in the prior-year quarter. While shrinking losses and a return to positive gross profit illustrate progress in cost control, absolute profitability remains elusive. There were no analyst estimates for comparison this quarter. Overall, the period shows operational improvement but highlights continued risks in margins, liquidity, and future outlook.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | ($0.12) | ($0.43) | Improved |
| Revenue | $56.6 million | $69.7 million | (18.7%) |
| Gross Profit | $0.6 million | $(4.7) million | Improved |
| Net Income (Loss) | $(1.7) million | $(6.4) million | Improved |
| EBITDA (Consolidated) | $0.1 million | $(5.9) million | Improved |
About the Business and Key Priorities
Blue Dolphin Energy refines Gulf Coast crude oil at its Nixon facility in Texas and operates related terminal and logistics services. It processes crude into fuels and specialty products for wholesale and commercial customers, while also generating revenue through tolling and terminaling services that store and move third-party products.
Recent efforts have centered around cost reduction and operational efficiency, responding to squeezed refining margins and financial risks. Key success factors for the business include strong operating margins, stable and cost-effective crude supply, careful working capital management, regulatory compliance, and handling competition from larger, better-capitalized refiners.
Quarter in Review: Financial and Operational Details
Revenue (GAAP) declined 18.8%, from $69.7 million in the prior-year quarter to $56.6 million, reflecting both lower sales prices and potentially reduced throughput in its refining business. This sharp top-line decline was partly offset by substantial cuts in cost of goods sold (GAAP), down from $74.4 million in the prior-year quarter to $56.0 million. These savings moved gross profit (GAAP) from a significant loss of $4.7 million in the prior-year quarter to a slim positive of $0.6 million. Management described these shifts as a result of "we will continue to streamline and simplify our organization to enhance our cost structure and improve profitability." the business amid ongoing margin and pricing pressures.
Despite the improvement in gross profit, the core refinery operations continued to post a loss. Pre-tax losses in refinery operations narrowed to $2.1 million, and EBITDA (non-GAAP) for refinery operations improved from a $6.0 million loss in the prior-year quarter to a $0.9 million loss. Tolling and terminaling, which are service agreements to store or handle petroleum products, generated EBITDA of $1.1 million, with Quarterly consolidated EBITDA was $0.1 million. "In the first half of the year Blue Dolphin focused on completing maintenance and turnaround activities to maximize operational efficiencies," management reported, helping explain narrower operational losses despite the revenue pressure.
Working capital and debt management remain pressing concerns. The company improved its working capital deficit from $19.1 million at December 31, 2024, to $16.8 million at June 30, 2025, while Cash and restricted cash increased to $1.8 million as of June 30, 2025. However, the scale of the deficit continues to present a risk to the company's financial flexibility. Interest expense was $1.6 million.
Regulatory compliance and exposure to changing environmental laws remain long-term risks. Management continued to refer to "policy uncertainty and geopolitical tensions" as factors shaping industry margins and pricing.
Looking Forward: Guidance and What to Watch
Management did not provide specific financial forecasts or detailed commentary on near-term strategy or capital allocation. The company stated it would continue its focus on cost reduction and operational improvements, aiming to strengthen profitability in a challenging market environment. Investors and observers should keep an eye on the size of the working capital deficit, movements in refining margins, and any developments in crude supply or debt structure in the periods ahead.
BDCO does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
