For the quarter ending June 30, Calumet Specialty Products Partners L.P. saw a steep net loss but with increased sales, Valvoline posted increases in sales and operating income, and Clean Harbors’ Safety-Kleen segment reported increased revenues and waste oil collection volumes.
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Indianapolis-based Calumet posted a $78.4 million net loss for the quarter ending June 30, compared to a $3.6 million profit in the same quarter in 2020.
Sales rose for the quarter, up 78% from $453.7 million to $807 million.
In the specialty products segment, total production volume fell to 49,195 barrels per day from 51,876 b/d, a 5% decrease. Lubricating oils rose almost 20% to 10,356 b/d from 8,636 b/d.
“We saw exceptionally strong demand during the second quarter,” Calumet CEO Steve Mawer said. “Supply chains are disrupted across the world and these disruptions also affected Calumet.”
Valvoline reported that its operating income increased almost 49% to $131 million for its third fiscal quarter ending June 30, up from $88 million in the same period of 2020. The company, based in Covington, Kentucky, posted total sales of $792 million for the quarter, a 54% jump compared to the previous year.
On May 18 of this year, Valvoline announced a realignment of its operations and how it would report its earnings, choosing to report two sections: retail services and global products.
Operating income for retail services, which contains the operations of the former quick lubes segment, reached $97 million for the quarter, up 120% from 2020. Segment sales were up 66% year-on-year to $330 million.
Operating income for its global products segment, a combination of the former core North American and international segments, were $72 million, an increase of 16%. Lubricant sales volumes rose from 30.5 million gallons to 41.8 million gallons, a 37% increase.
Sales in North America reached $278 million for the quarter, up from $207 million. Europe, Middle East and Africa sales increased to $56 million from $34 million. Sales in the Asia Pacific region rose to $96 million from $65 million, and Latin American sales also grew to $32 million from $11 million.
“Our strategic transformation to a service-driven business continues to accelerate our growth, margins and earnings,” Valvoline CEO Sam Mitchell said in the company’s Aug. 4 earnings release. “In addition, secular growth of key industry drivers, such as vehicles in operation, miles driven and age of vehicles, continue to drive global demand for Valvoline’s products and preventive maintenance services.”
Clean Harbors’ Safety-Kleen sustainability solutions segment – which includes oil rerefining, waste oil collection and finished lubricants – reported third party revenues increased 109% to $203 million for its second quarter from $97 million in the same quarter last year.
Waste oil collections for the quarter grew to 57 million gallons from 43 million a year ago.
Clean Harbors, based in Norwell, Massachusetts, acquired assets related to Vertex Energy’s used motor oil collection and rerefinery business in June this year. The company said it expected the acquisition to close at the end of the current quarter.
The Safety-Kleen segment “delivered extraordinary growth and profitability in the quarter, as our new segment continues to benefit from the combination of our waste oil collection with our SK Oil business,” said Alan McKim, chairman, president and CEO of Clean Harbors. “The supply shortages for base and blended oil, along with the impacts of IMO 2020, created a highly favorable pricing environment. These market conditions led to the widening spread in our used oil market.”