Calumet Specialty Products Partners LP said Thursday that profits for the second quarter of 2006 improved 24 percent from the same period of last year, thanks to improved margins for base oils and other products, and lower operating costs.
The company, which conducted its initial public stock offering earlier this year, posted net income of $23.2 million for the three months ended June 30, compared to $18.7 million in the second quarter of 2005. Sales revenue jumped 43 percent to $ 429.9 million.
Gross profit for the Specialty Products segment, which includes base oils, solvents, waxes and asphalt, jumped 97 percent to $40.5 million, even though volumes rose just 5.3 percent. Base oil sales volumes rose 8 percent to 12,100 barrels per day, accounting for 41 percent of segment volumes. Gross profit for the fuel segment was $17.6 million, an increase of 78 percent on volume of 52,700 b/d.
Officials noted that the Indianapolis-based company completed a follow-on stock offering last month, raising $103.5 million to help fund a previously announced expansion at its refinery in Shreveport, La. The company said it has already spent upwards of $20 million on equipment for that project and is close to making additional purchases.