Vertex Energy Inc. reported large increases in gross profit and revenues for its used motor oil collection and processing business, while Perimeter Solutions SA’s oil additives business reported higher earnings and sales for the quarter ended March 31.
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 said it was continuing to seek 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 – and said in its Securities and Exchange Commission earnings filing that it believed it would sell such assets within a year. Vertex revised its historical statements to present the operating results of the used motor oil business as discontinued operations.
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Gross profit from those operations rose 72% to $19.3 million in the first quarter, improving from $11.3 million. Income from operations jumped 145% to $13.8 million, compared with $5.7 million.
First-quarter revenue from the discontinued operations was up 60% at $53 million, compared with $33.2 million.
Perimeter Solutions’ oil additives segment reported adjusted earnings before interest, taxes, depreciation and amortization of $15.3 million for the first quarter, a 98% jump from $7.8 million.
Oil additives’ net sales rose 50% to $39.3 million for the first quarter, compared with $26.3 million.
Based in Clayton, Missouri, the company’s oil additives 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.