Exhibit 99.1
NEWS RELEASE
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FOR IMMEDIATE RELEASE August 14, 2003
Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)
BLUE DOLPHIN ENERGY COMPANY REPORTS IMPROVED SECOND QUARTER RESULTS
Blue Dolphin Energy Company reported net income of $470,576 on revenues of
$1,001,942 for the quarter ended June 30, 2003, compared to a net loss of
$389,588 on revenues of $1,046,938 for the quarter ended June 30, 2002. Second
quarter 2003 revenues include approximately $745,000 from the Company's
reversionary working interest in the High Island Area Block A-7 field that it
received in late April 2003. For the quarter, the improved results are primarily
due to lower depletion expense of approximately $.2 million as a result of oil
and gas properties sold in the second half of 2002, a $.4 million or 50%
reduction in overhead costs and a gain of $.3 million recorded from a reduction
to the Company's provision for abandonment costs.
(In thousands, except per share amounts)
Quarter Ended
June 30,
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Net Change
2003 2002 2003 vs 2002
-------------- -------------- ------------
Revenues $ 1,002 $ 1,047 $ (45)
Net income (loss) $ 471 $ (390) $ 861
Net income (loss) per common share
Basic $ 0.07 $ (0.06) $ 0.13
Diluted $ 0.07 $ (0.06) $ 0.13
For the six months ended June 30, 2003, the Company reported net income of
$74,066 on revenues of $1,322,916, compared to a net loss of $1,312,999 on
revenues of $1,954,504 for the six months ended June 30, 2002. The decrease in
revenues in 2003 was due to sales of oil and gas properties in the second half
of 2002, offset in part by oil and gas revenues from the High Island Area Block
A-7 field. The improvement in 2003 results was due primarily to lower depletion
expense of $.5 million, an asset impairment and associated bad debt expense of
$.5 million recorded in 2002 and a gain recorded in 2003 from the reduction to
the Company's provision for abandonment costs.
(In thousands, except per share amounts)
Six Months Ended
June 30,
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Net Change
2003 2002 2003 vs 2002
-------------- -------------- ------------
Revenues $ 1,323 $ 1,955 $ (632)
Net income (loss) $ 74 $ (1,313) $ 1,387
Net income (loss) per common share
Basic $ 0.01 $ (0.21) $ 0.22
Diluted $ 0.01 $ (0.21) $ 0.22
There are currently 6,649,190 shares of common stock issued and outstanding.
Blue Dolphin Energy Company is engaged in the gathering and transportation of
natural gas and condensate, and the acquisition and development of oil and gas
properties. Questions should be directed to Haavard Strommen, Manager of
Finance, at the Company's offices in Houston, Texas, 713-227-7660. For further
information see our Home Page at http://www.blue-dolphin.com.
Certain of the statements included in this press release, which express a
belief, expectation or intention, as well as those regarding future financial
performance or results, or which are not historical facts, are "forward-looking"
statements as that term is defined in the Securities Act of 1933, as amended and
the Securities Exchange Act of 1934, as amended. The words "expect", "plan",
"believe", "anticipate", "project", "estimate", and similar expressions are
intended to identify forward-looking statements. These forward-looking
statements are not guarantees of future performance or events and such
statements involve a number of risks, uncertainties and assumptions, including
but not limited to industry conditions, prices of crude oil and natural gas,
regulatory changes, general economic conditions, interest rates, competition,
and other factors. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, actual results
and outcomes may differ materially from those indicated in the forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.