Martin Midstream Partners reported higher operating income and lower sales revenue for its specialty products business segment – which includes lubricants and greases – for the quarter ended Sept. 30.
Total specialty products business segment operating income improved to $6 million – including a $15.1 million operating loss attributed to the company’s butane optimization business – compared to a $13.3 million operating loss in the same period last year. The third-quarter 2022 results were also impacted by an operating loss, of $20 million, attributed to the butane optimization business.
Specialty products sales revenues – including for lubricants, greases, propane and natural gasoline – declined 45% to $66.7 million in the quarter, compared to $121.5 million.
In the second quarter, lubricants accounted for $9 million in operating income and greases for $8.6 million in operating income, together constituting about 83% of the company’s sub-total for specialty products operating income. The company started breaking out separate operating income numbers for lubricants and for greases in its quarterly earnings presentations in the first quarter of this year.
The company provides blending and packaging services for specialty lubricants and greases through its Martin Lubricants business, which operates two blending and packaging plants, one in Smackover, Arkansas, and one in the Kansas City area. The company supplies bulk lubricants and packaged goods for automotive, industrial and commercial-grade use. Martin Lubricants also packages private label products for major oil companies, farm store chains, dollar stores, and auto parts wholesalers, as well as exports finished lubricants worldwide.
Based in Kilgore, Texas, Martin Midstream Partners’ other business segments include terminalling and storage, transportation and sulfur services.