Dakota Plains noted in its third-quarter report, that frac sand transloading volumes were 141,000 tons, an increase of approximately 102 percent compared to the third quarter of 2014. The company benefitted from its first full quarter of in-house operations at the Pioneer Terminal, materially reducing operating costs. Revenue from transloading frac sand was $1.0 million compared to $0.6 million in the third quarter 2014.
The company had a net loss of $21.2 million compared to breakeven results for the third quarter of 2014 after adjusting for non-controlling interests. Included in the net loss of $21.2 million was the application of a non-cash valuation allowance on deferred tax assets of $26.2 million and an offsetting non-cash adjustment made to the Operational Override liability in the amount of $10.0 million.
Craig M. McKenzie, chief executive officer of Dakota Plains, said, “The energy industry continues to adjust to lower oil prices, and crude by rail is rationalizing in response to the broader sector. At Dakota Plains we are positioning for long term competitive success as evidenced by our record crude oil transloading volumes, steady top-line, lower costs and increasing market share.”
Revenue from frac sand transloading was $1.0 million for the third quarter compared to $0.6 million for the third quarter of 2014. The increase in revenue was driven by volume as the company transloaded approximately 141,000 tons of frac sand during the third quarter of 2015 compared to approximately 70,000 tons transloaded during the same period of 2014. The cost of revenue related to frac sand transloading was $0.1 million for the third quarter of 2015 compared to $0.3 million for the third quarter of 2014. The decrease was due to improved efficiencies as a result of bringing the transloading operations in-house during the second quarter of 2015.
Interest expense was $2.1 million for the third quarter compared to $0.5 million for the third quarter of 2014. The increase was primarily driven by the interest expense related to the operational override liability and the additional debt resulting from the acquisition of 50 percent of the outstanding interest of the transloading, sand and marketing joint ventures in the fourth quarter of 2014.