Calumet Specialty Products Partners LP last week reported net income for the quarter ending June 30 of $41.8 million, up 11.8 percent from $37.4 million in the year-earlier period. Sales revenue for the quarter was up 59.2 percent to $671.2 million, compared to $421.7 million in the year-earlier period.
Indianapolis-based Calumet said historically high crude oil prices continued to pose significant challenges during the second quarter. We have implemented multiple rounds of specialty product price increases to customers during this volatile period, said Calumet CEO and President Bill Grube. We expect the recent reduction or termination of production of certain specialty products by other major suppliers will have a favorable impact on Calumet placing additional specialty products volumes in the market from our Shreveport refinery expansion project.
As of May 2008, the expansion project was operational, increasing the Shreveport refinery’s throughput capacity from 42,000 barrels per day to 60,000 b/d. For the three months ended June 30, the Shreveport refinery had total feedstock runs of 41,000 b/d, an increase of 6,000 b/d from the first quarter of 2008. As part of the project, Calumet has enhanced the Shreveport refinery’s ability to process sour crude oil. As of June 30, the company is processing about 13,000 b/d of sour crude oil at the Shreveport refinery. In certain operating scenarios, Calumet said it expects it can increase sour crude oil throughput rates up to about 25,000 b/d.
Calumet said it invested approximately $147.7 million in capital expenditures at the Shreveport refinery in the six months ended June 30, of which $115.5 million relates to the Shreveport refinery expansion project.
From Dec. 31, 2005 through June 30, 2008, the company has invested approximately $473.1 million in the Shreveport refinery, of which $369.9 million relates to the Shreveport refinery expansion project.