Valvoline Inc. Reports Higher Profits, Sales


Valvoline Inc. Reports Higher Profits, Sales

Valvoline Inc. reported large increases in income and sales from continuing operations and in system-wide store sales for the quarter ended June 30, citing resiliency in its preventive maintenance business.

Meanwhile, HF Sinclair’s income and revenues suffered in the second quarter, Calumet Specialty Products Partners L.P. posted mixed results and Perimeter Solutions’ earnings and net sales fell in the second quarter.


Valvoline’s income from continuing operations grew 62% to $64.5 million for the company’s third fiscal quarter. Sales from continuing operations rose 19% to $376.2 million, and system-wide store sales jumped 18% to $719.6 million.

Valvoline – based in Lexington, Kentucky – formerly had two segments: Retail Services and Global Products. Retail Services sales are limited to sales at company-operated stores, sales of lubricants and other products to independent franchise and Express Care operators, in addition to royalties and other fees from franchised stores.

Valvoline continues to demonstrate the resiliency of the preventive maintenance business, Valvoline CEO Sam Mitchell said in the company’s earnings release.

Two years ago Valvoline restructured its business model, renaming its Quick Lubes segment to Retail Services and consolidating its Core North America and International segments into Global Products. Retail Services comprises Valvoline’s oil change stores in the United States and Canada, while Global Products focuses on sales of lubricants and other maintenance products through channels other than Quick Lubes.

Saudi Aramco acquired Valvoline’s Global Products business for $2.7 billion on March 1.

HF Sinclair

HF Sinclair’s lubricants and specialty products segment reported that income from operations fell 62% to $51.4 million from $134.9 million in last year’s second quarter.

The segment’s revenues from external customers also dropped, from $845 million to $686.1 million, a 19% decline.

“This decrease was largely driven by a lower [First in, First Out]] benefit from consumption of lower priced feedstock inventory for the second quarter of 2023 of $0.5 million as compared to $71.0 million for the second quarter of 2022,” the company said in its earnings report. Under First in, First Out – referred to as FIFO – assets produced or acquired are sold, used or disposed of first.

The lubricants and specialty products segment includes Petro-Canada Lubricants and its refinery in Mississauga, Ontario, which makes such products as base oils, white oils, specialty products and finished lubricants, along with specialty lubricants from HollyFrontier’s refineries in Tulsa, Oklahoma.


Calumet reported base oil and process oil sales revenue of $186.3 million for the second quarter, down 18% from $245.3 million. Production of those products dipped slightly, from 10,661 barrels per day to 10,495 b/d. Wax production slightly rose from 1,204 b/d to 1,314 b/d, a 9% difference.

The company’s performance brands segment, which includes Royal Purple and Bel-Ray finished lubricants, along with packaged high-performance fuels, posted total sales of $85.6 million, up almost 7% from $80.1 million. Production in that segment climbed over 70%, from 1,615 b/d to 2,754 b/d.

Calumet reported a higher net loss of $18.5 million, compared to a $15.3 loss million last year.

Perimeter Solutions

Perimeter Solutions’ specialty products segment – formerly known as oil additives — reported adjusted earnings before interest, taxes, depreciation and amortization of $4.5 million for the second quarter, down 61% from $11.5 million.

The segment’s net sales fell 35% to $48.1 million from $73.7 million.

“Our key end-markets, in both our Fire Safety and Specialty Products businesses, were slow in the second quarter,” the company said in its earnings release. “Both our businesses significantly outperformed their end-markets, however, due primarily to successful implementation of our value-driver initiatives.”

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.

Related Topics

Additives    Base Stocks    Business    Earnings    Finished Lubricants    North America    Region    U.S.A.