Syntroleum Corporation Q2 2009 Earnings Call Transcript

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2009-08-10 09:50:41.0

Tags: Call Transcript, Earnings, Investor, Government Subsidy, Jet Fuel, Financial Accounting, Finance, Seeking Alpha, Syntroleum Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Gary Rumple, private investor.

Gary Rumple - Private Investor

Two conference calls ago you guys were speculating on what the profit per gallon would be when the plant was running full boar; on a projected profit per gallon you said it was excluding a government subsidy of $1.00 per gallon. My question is, is that $1.00 per gallon government subsidy in place and how long is it mandated by congress until they would have to revisit it?

Jeff Bigger

The $1.00 a gallon is in place currently; it runs through the end of the year. It has been proposed that it be extended for five years and that has gone to the Senate in the recent write up of the bill for these subsidies.

Gary Rumple - Private Investor

Okay and when you guys are projecting a profit per gallon have you guys used that $1.00 per gallon in it, or has that been excluding that $1.00 government subsidy, because you don’t know for certain whether it is going to be in place?

Jeff Bigger

We have included the $1.00 per gallon in our projections.

Gary Rumple - Private Investor

Okay, thank you sir.

Operator

Your next question comes from Dan Keane from Associated Community Brokers.

Dan Keane - Associated Community Brokers

I wondered if you could tell me if a decision will be made regarding your production of either jet or diesel fuel in Louisiana?

Jeff Bigger

The plan is currently set up to produce diesel fuel and we will start it up on diesel. The jet fuel is not currently certified for use in aircraft; that work is underway and we have supplied 600 gallons of renewable jet fuel for the Air Force that is undergoing their certification work right now.

Dan Keane - Associated Community Brokers

Thank you.

Operator

Your next question comes from Jared McDonald a private investor.

Jared McDonald - Private Investor

This is in regards to China. I know you have the Sinopec deal over there; is there any possibility of you coming up with a plant being built over there?

Gary Roth

That is the ultimate plan, is to move the demonstration for the facility to China; run it on coal- derived syngas. When it works, as it historically has on natural gas, we believe, then it would go to commerciality after that demonstration.

Jared McDonald - Private Investor

 

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