Q2 Earnings Summary


Calumet Specialty Product Partners reported a net loss, and Clean Harbors made less money from rerefined and blended products in the second quarter, compared to the year-earlier period.


Calumet Specialty Products Partners LP reported a $147.9 million net loss for the quarter ending June 30, compared to $2.5 million net income a year earlier. A key item impacting the net loss was $147.3 million of non-cash charges due mainly to the partnerships divestiture in June of its 50 percent joint venture interest in Dakota Prairie Refining LLC. That was a 20,000 barrels per day fuels refinery in Dickinson, North Dakota.

Indianapolis-headquartered Calumets second quarter sales reached $972.9 million, down 18.9 percent from nearly $1.2 billion.

First-quarter sales volumes for specialty products reached 29,029 barrels per day, compared to 27,916 b/d in the year-earlier quarter. Lubricating oils reached 15,716 b/d, up from 15,005 b/d. Packaged and synthetic specialty products rose to 2,110 b/d, from 1,605 b/d. Other second-quarter sales volumes included 1,581 b/d for waxes and 7,823 b/d for solvents.

Although specialty products sales volumes increased on a year-over-year basis in the second quarter 2016, a rapid escalation in crude oil prices during the period impacted segment gross profit, Calumet CEO Tim Go said in the companys earnings news release. Looking ahead to the third quarter 2016, we anticipate increased margin capture within our specialty product segment, following recent price increases.

Clean Harbors

Norwell, Massachusetts-based Clean Harbors said its Kleen Performance Products business segment posted $86.7 million in third party revenues for the second quarter, down 12.5 percent from $99.1 million a year earlier.

Third-party revenues represent the segments sales of base oil, blended products and reclaimed fuel oil and a small amount of byproducts.

In its earnings news release, Chairman and CEO Alan McKim noted that Kleen Performance Products posted a small rebound in base oil pricing from earlier in the year, as well as an increase in blended product sales.

In its presentation to investors, Clean Harbors noted that Kleen Performance Products outside revenue declined due to year-over-year reductions in base oil and blended pricing. Its base oil price started the second quarter 75 cents per gallon below that of a year earlier, the company stated, and concluded at quarters end 18 cents below the prior year, due to three price increases during the quarter.

We expect a significant sequential benefit from pricing gains in the base oil marketplace, and we expect that Kleen Performance Products will, in the third quarter, more than double its profitability compared with its second-quarter profitability, McKim said in the companys earnings news release.

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