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Delta’s oil refinery sinks to loss in 1H 2016
The refinery was profitable in both 2014 and 2015. (atwonline.com) 기타...
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So, Delta's refinery entity went $38 mil in the red for the 1st half of the year.
Delta's airplane entity bought fuel that cost $38 mil less than the production cost.
What is the overall effect on the total Delta bottom line. Am reminded of the test question 'if a cow weighs 3000 pounds on 4 legs, how much does it weigh on 3 legs?
Delta's airplane entity bought fuel that cost $38 mil less than the production cost.
What is the overall effect on the total Delta bottom line. Am reminded of the test question 'if a cow weighs 3000 pounds on 4 legs, how much does it weigh on 3 legs?
Exactly! We're just talking accounting.
And for tax purposes a loss will offset any taxes paid on profits the last two years and might even qualify them for a government grant or two. That is a great aspect of selling your product to yourself....the price can be "flexible".
I was fascinated with the news about delta purchasing this refinery several years ago, for it seemed to be clever and farsighted to do so then. Now I wonder if delta should have gone further by adding some production oil fields. By purchasing more of the production elements, so as to get an even better price and supply certainty.
Delta has a hard enough time just running an airline, I think they are better off sticking to one thing.
Having just experiencing United's "upgraded" service, Delta looks pretty good. Part of United's upgrade seems to be trading corporate watches for calendars.
in fact, delta runs a very good airline, and is smart enough to look for enhancements and improvements throughout its operations. Refinery is a smart thing, and over ten or twenty years it will continue to impress bottom liners everywhere. Nobody sticks to one thing, unless they lack imagination and nerve to step out and grow smarter.
Plus ... the factory has american workers in an american factory .....