Originally Posted by
acl65pilot
It may be, but I figured if it produces 185,000 barrels a day at current jet A prices.
Lets see: Public math warning.
@ 140 a BBL * 185,000 bbl of fuel, most of it Jet A, so 25,900,000 dollars in revenue a day.
25,000,000 * 365 = 9.5 billion in revenue a year. Its about a 25% increase in our current projected revenue for fy12, which is 36 bln based on street estimates.
Projections are showing a 160-170 per bbl of jet A so that would be 31.45 million a day or 11.5 bln a year. Aprox 32% of our current revenue. Thanks for maxing me do public math and not a SWAG
Now the average markup is 7% or about 2.170 bln in profit a year from this refinery.
Public math sucks. I hate doing it as 3:1 is hard enough. But knowing a tiny bit about refineries, I do know that they close fairly often for scheduled maintenance. Usually 4-8 weeks over a year.
If it makes Delta more profitable, great. On that profit note though, I'd rather have a revenue sharing agreement now instead of profit sharing, particularly if this venture pans out.