2Q: Calumet Slides, Clean Harbors Steady


Calumet Specialty Products Partners reported a net loss for the second quarter, while Clean Harbors made more money off rerefined and blended products, both compared to the second quarter of 2013.


Calumet Specialty Products Partners second quarter concluded with a net loss of $8.3 million, the company reported – a decline from 2013s second quarter net income of $7.8 million.

The Indianapolis, Ind.-based specialty hydrocarbons producer reported $1.4 billion in fuels and specialty products sales for the three months ended June 30, a negligible uptick from 2013s second quarter results.

For every segment of its specialty products, Calumet reported a decline in sales volumes compared to 2013s second quarter. Lubricating oils sank 21.4 percent to 10,952 barrels per day, solvents declined slightly to 9,440 b/d, waxes declined 15.1 percent to 1,110 b/d, and packaged and synthetic specialty products waned 19.8 percent to 1,893 b/d, down from year-earlier volumes. Total specialty products sales volume – which includes Calumets category of other products such as white oils – declined 15 percent to 25,296 b/d, compared to the 2013s second quarter volume.

Calumets results in both the fuel products and specialty products segments were negatively affected by a 30-day plant-wide turnaround of its Shreveport, La., refinery – which includes a 4,800 b/d API Group I and 7,000 b/d Group II base oil plant – during the second quarter, the company said in a recent earnings report.

“The extended turnaround at Shreveport, which included multiple plant optimization and reliability improvement projects, reached completion in early June, said Bill Grube, Calumets vice chairman and CEO.We are currently operating the refinery at elevated rates during the third quarter 2014.”

On Aug. 1, Calumet completed the acquisition of its second drilling fluids company this year, Specialty Oilfield Solutions, for $30 million in cash. This follows its acquisition of Anchor Drilling Fluids in March.

Calumet also signed a joint venture agreement with Juniper GTL, to build a gas-to-liquids plant in Lake Charles, La., which it expects will produce 1,100 b/d of products such as waxes, drilling fluids, diesel and naphtha upon its completion at the end of 2015.

Calumet is making progress on an expansion of its Missouri esters plant, which it says will propel its esters production capacity from 35 million pounds per year to 75 million p/y upon completion during the second quarter of 2015. The total cost of the project is approximately $40 million, the company estimates. Calumet markets its esters as a base stock used in aviation, refrigeration, and automotive lubricants.

Clean Harbors

Clean Harbors reported third-party revenue from its oil rerefining and recycling segment of $144 million for the three months ended June 30, up 17.1 percent from $123 million in 2013s second quarter. Norwell, Mass.-based Clean Harbors third-party revenues represent the rerefining groups sales of base stocks, blended oils, reclaimed fuel oil and a small contribution of byproducts.

As we move into the second half of 2014, we are encouraged by trends within our technical services segment and the volumes we are continuing to drive into our network, particularly from Safety-Kleen, said Alan McKim, chairman and CEO, in a recent press release. Within oil rerefining and recycling, we are continuing to sell more blended product, lower [pay-for-oil program] costs and increase efficiencies.

Clean Harbors acquired rerefiners Evergreen Oil in 2013 and Safety-Kleen in 2012. Evergreen Oils Newark, Calif., rerefinery – now considered part of Safety-Kleen operations – has 1,150 barrels per day of API Group II capacity. Safety-Kleens East Chicago, Ind., rerefinery has 800 b/d of Group I and 4,200 b/d of Group II capacity. Its rerefinery in Breslau, Canada, has capacities of 700 barrels per day of Group I and 1,200 b/d of Group II.

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