Calumet Specialty Products Partners LP reported declines in net income, sales and sales volume in the second quarter, Afton Chemical posted lower operating profit but higher sales and Cosans Moove lubricants segment reported big increases in net revenue and net profit.
Calumet posted a net loss of $51.9 million in the second quarter of 2018, compared to a $56.7 million net loss in 2017s second quarter. The net loss included a $58.2 million cost of debt extinguishment, which means eliminating a debt by paying the full balance owed or by replacing it with another debt instrument. Excluding that cost, net income for the quarter was approximately $6.3 million, down 34.4 percent from last years second quarter total of $9.3 million.
Sales for the Indianapolis-based company reached $945.5 million in the quarter, down 2.2 percent from last years second quarter number of $967 million.
Specialty products sales volumes in the quarter reached 27,198 barrels per day, down 7.5 percent from 2017s second quarter. Lubricating oils hit 13,755 b/d, a 13.5 percent decrease from 15,914 b/d in the year-earlier period, while packaged and synthetic specialty products totaled 2,458 b/d, down 3.6 percent.
Our core specialty business was driven by continued growth in finished lubricants and strengthening demand for our solvents business, which was offset by unplanned maintenance activity and the continued upward trajectory of crude prices, said Calumet CEO Tim Go in the companys earnings news release.
NewMarket Corp.s Afton Chemical petroleum additives segment posted operating profit of $71.5 million for the second quarter of 2018, down 21.6 percent from $91.3 million in the year-earlier period. The Richmond, Virginia-based company cited higher raw material and conversion costs and unfavorable changes in foreign currency exchange as reasons for the decrease.
Sales for the segment in the quarter totaled $596.2 million, an increase of 9.6 percent compared to the same period last year. Higher shipments, increased selling prices and foreign currency exchange were reasons for the increase, according to the companys earnings release.
Shipments for the quarter were up 2.3 percent from the same period last year, with increases in lubricant additives and fuel additives shipments, the company noted. Europe and Latin America mainly contributed to the increase in lubricant additives shipments.
Cosans lubricant production and distribution arm Moove reported net revenue of 826.7 million Brazilian reals (U.S. $213 million) for the second quarter ending June 30, a 61.6 percent increase from the second quarter of 2017.
Net revenue for the segment was boosted by international operations growth and a better mix of products sold, the companys earnings release stated.
Mooves net income for the quarter totaled 34.4 Brazilian reals (U.S. $8.8 million), a 92.2 percent increase from the 17.9 Brazilian reals (U.S. $4.6 million) posted in the year-earlier period.
Total lubricant sales for the segment amounted to 80,000 metric tons, a 4 percent decrease from the year-earlier period. The Sao Paulo, Brazil-based company cited lower sales volumes in Brazil for the decrease.
Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.