Vertex Energy Inc. reported a 178% increase in gross profit and increased sales for its used motor oil collection and processing business, and Perimeter Solutions SA’s specialty products segment posted a 49% jump in profits and higher net sales for the second quarter.
Vertex Energy
Vertex operates a rerefinery in Columbus, Ohio, which can produce 1,500 barrels per day of API Group II base stocks and a rerefinery in Marrero, Louisiana, which produces finished vacuum gas oil. The company previously announced it is still seeking a buyer for its used motor oil business – after canceling a planned sale of that business to Safety-Kleen’s parent, Clean Harbors, in January. Vertex revised its historical statements to present the operating results of the used motor oil business as discontinued operations.
Gross profit from those operations jumped to $24.5 million, improving from $8.8 million, according to Vertex’s quarterly earnings report filed with the SEC. Income from operations surged 379% to $17.8 million, compared with $3.7 million.
Second-quarter sales revenue from the discontinued operations was up 69% at $59.4 million, compared with $35.1 million in the same period last year.
Perimeter Solutions
Perimeter Solutions’ specialty products segment – formerly known as oil additives — reported adjusted earnings before interest, taxes, depreciation and amortization of $11.5 million for the second quarter, a 49% jump from $7.7 million in the same period last year.
Specialty products net sales increased 15% to $34.4 million in the second quarter, compared to $30 million in the same period last year.
Based in Clayton, Missouri, the company’s specialty products business produces and sells phosphorus pentasulfide that is primarily used in the preparation of lubricant additives, including zinc dialkyldithiophosphates that provide critical anti-wear protection to engine components. Perimeter Solutions manufactures the chemical at plants in Sauget, Illinois, and Hurth, Germany, and claims to be the only phosphorus pentasulfide supplier with a global footprint. In June the company changed the name of its oil additives segment to specialty products to better reflect the current and expanding applications for phosphorus pentasulfide in several end markets and applications, including lubricant additives, various agricultural applications, various mining applications and emerging electric battery technologies.