Um, yeah. The debt wasn't recently reduced by about $700 million. What you saw probably doesn't reflect that. The neg. profit margin is an accounting apparition. Search other posts on this board about hedging and "mark to market" losses. I can almost guarantee you, there will be an enormous profit for Q3 this year. Probably on the order of $600 or $700 million.
At 6-30-08, LINE had hedge liabilities of almost $1 billion, rperesenting approximtely what it would have cost LINE to close its hedge positions at that date.
By 9-30-2008, those will probably be less than $250 million of hedge liabilities as LINE reports mark to market gains which offset most of the prior mark to market losses that GAAP requires MLPs to record.
If you don't understand hedge accounting, you need to do more research to get adequately informed to understand financial statements under today's less than illuminating accounting rules.
For that matter, financial institutions reporting huge losses often are "marking to market" -- often at $0 valuations -- perfectly good income-producing assets for which there is no available way to value under the accounting rules.
Look for wise investors to make billions off these accounting abberations. Look also for the FASB to revisit its mark to market rules in th efuture now that those rules have been shown not to work.