Calumet Posts Smaller Losses


Calumet Specialty Product Partners L.P. reported a $64.9 million net loss for 2017s fourth quarter, smaller than the $79.6 million net loss in 2016s fourth quarter. For the full year the companys net loss shrank to $85.1 million, compared to a $328.6 million net loss for 2016.

The 2017 fourth quarter net loss included a $172.2 million net gain on the sale of its refinery in Superior, Wisconsin and Anchor Drilling Fluids USA LLC; and $205.7 million in non-cash impairment charges primarily related to the revaluation of the partnerships property, plant and equipment at several facilities.

CEO Tim Go said in an earnings news release that 2017 was an important year for the company as it completed those divestitures of two significant non-core assets. These transactions will reduce volatility in our business and allow Calumet to focus on our core specialties business, Go said.

Although the company posted a net loss, management believes it has successfully turned the corner. We have delivered five consecutive quarters of improved earnings results on a year-over-year basis, he said.

Fourth quarter sales volumes for specialty products were down in 2017s fourth quarter, to 25,022 barrels per day, compared to 27,653 b/d in 2016s fourth quarter. Lubricating oils accounted for 13,155 b/d, down from 15,373 b/d in the year-earlier quarter.

Packaged and synthetic specialty products slid to 1,720 b/d, down from 1,816 b/d. This production represents production of branded and packaged specialty products, including those from the Royal Purple, Bel-Ray and Calumet Packaging facilities.

Other fourth quarter sales volumes included 7,859 b/d of solvents and 1,381 b/d of waxes.

Related Topics

Business    Earnings