Calumet Specialty Products Partners, L.P. Reports Third Quarter 2017 Results

INDIANAPOLIS, Dec. 28, 2017

	Three Months Ended September 30,
	2017					2016
	(Dollars in millions, except per unit data)
Sales	$ ARIVA.DE Börsen-Geflüster Kurse Calumet Specialty Products 15,58 $ -3,83%	1,097.4				$		966.6
Net loss	$	(23.6)				$		(33.4)
Limited partners' interest basic and diluted net loss per unit	$	(0.30)				$		(0.42)
Adjusted EBITDA	$	95.7				$		53.9
Sales volumes (thousand barrels per day)	146.2							141.5
Net debt/Adjusted EBITDA		6.6x						21.8x
Liquidity	$	412.7				$		388.2

The Partnership's $23.6 million net loss and Adjusted EBITDA of $95.7 million for third quarter 2017 included, but is not limited to, the impact of a favorable lower of cost or market ("LCM") inventory adjustment of $11.1 million and special charges of approximately $10 million related to enterprise resource planning ("ERP") system implementation expenses, M&A transaction expenses and realized hedging losses.

Management Commentary

"I am pleased to report today that Calumet has delivered another solid quarter of results and a fourth consecutive quarter of improved overall performance," said Tim Go, Chief Executive Officer of Calumet. "I also want to express my disappointment over the delays required in filing our quarterly financial results and apologize to our stakeholders, all of whom have been patient with us as we implemented our new ERP system. Heading into the fourth quarter and beyond, we expect to file our quarterly results without delays. The Partnership has seen significant year-over-year improvements in our financial performance, driven by improved market conditions and our internal self-help initiatives. Our results are a testament to the hard work of our employees as we continue to execute against our long-term strategic goals.

Despite significant supply chain disruptions in the Gulf Coast region due to Hurricane Harvey and the implementation of our new ERP system, our core specialty products segment Adjusted EBITDA contribution of $43.0 million is flat to the prior year period. While the first two months of the quarter marked healthy growth for our core business, the month of September was adversely affected by these disruptions, which caused us to delay and backlog some shipments in our highest margin specialties and branded products divisions out of the third quarter. The ability to deliver these results despite the negative impact of these events is indicative of the strength of our underlying business and reflects the improvements we have put in place over the course of the last year. We see continued strength in our core specialty markets, and shipping has returned to normal levels through the final quarter of the year."

Go continued, "Our strong fuel products segment Adjusted EBITDA performance of $46.3 million showed marked improvement to both year-over-year and sequential comparisons, and represented the highest segment performance in the last nine quarters. Our refineries operated efficiently with higher than average production through the quarter, especially through the period of time affected by Hurricane Harvey. As a result, we were able to supply areas of Texas and Louisiana with fuel products during a period when many other suppliers were shut down. Our Adjusted EBITDA gains were somewhat offset by hedging losses in the quarter as crude continued to move higher. However, during the third quarter we locked in healthy prices for our fuel products, which we expect to provide a benefit to our performance through the seasonally weaker winter timeframe. Additionally, our oilfield services segment saw a second consecutive quarter of profitability as the market continues to display strength in concert with our continuous improvement efforts, helping drive the strongest quarterly performance for the segment since 2014."

Go concluded, "The third quarter saw Calumet make significant strides related to our long-term goals. Over the last four quarters we have made dramatic improvements to our balance sheet leverage, which currently sits at 6.6x Net debt/Adjusted EBITDA compared to 21.8x at this point last year. We continue to remain vigilant in our efforts to maintain cost discipline and drive further operational efficiencies, as evidenced by the $44 million in profit contribution from our self-help program year to date. In November we closed the sale of our Superior, WI refinery, as well as the divestiture of Anchor Drilling Fluids USA, LLC for a total announced consideration of approximately $576 million. We expect that net of final closing cost adjustments and after transaction expenses we will actually realize approximately $600 million from these divestitures. All of these efforts will allow Calumet to deleverage its balance sheet, lower volatility, and ultimately allow the Partnership to focus more meaningful attention and capital on our core specialty business. Our continued improvements combined with strategic divestitures will help support our efforts to drive meaningful long-term value creation for Calumet unitholders."

Specialty Products Segment | Results Summary

Specialty products segment gross profit per barrel of $30.81 marks a decrease compared to the prior year period, as the rising crude price environment and Hurricane Harvey's impact on our logistics providers' ability to ship our highest margin branded products negatively impacted gross profit. While continued tightness in industry supply and our self-help initiatives continue to drive meaningful gains for the business, the positive results were offset by the significant disruptions to the supply chain. Specifically, our Porter, TX and Dickinson, TX plants as well as several of our key suppliers to those facilities were negatively impacted. The specialty segment Adjusted EBITDA of $43.0 million was relatively flat to the prior year period, but lower than the record quarterly performance seen in the second quarter of this year. Despite these negative impacts, the segment EBITDA results were commensurate with historical third quarter performance for the business. Segment results benefited from a $6.1 million favorable LCM inventory adjustment.

Fuel Products Segment | Results Summary

Fuel products segment gross profit and Adjusted EBITDA reflected significant improvement relative to the prior year period, driven by strong operations and high utilization through a period of time when the benchmark Gulf Coast 2/1/1 crack spread widened meaningfully in response to the heavy flooding and supply shortages. These market factors contributed to the 164% increase to gross profit and 236% increase to Adjusted EBITDA respectively, relative to the prior year period. Third quarter Adjusted EBITDA of $46.3 million represents the strongest performance from the segment in nine quarters. Fuel products' sales volumes increased approximately 5% year-over-year, due primarily to the increased demand and the business' ability to deliver product into the Louisiana and Texas markets affected by Hurricane Harvey, while many competitors were shutdown. Third quarter Adjusted EBITDA benefited from a $1.2 million favorable LCM inventory adjustment.

Oilfield Services Segment | Results Summary

	Three Months Ended September 30,
	2017				2016
	(Dollars in millions)
Oilfield services segment gross profit	$	23.8			$	7.3
Oilfield services segment Adjusted EBITDA	$	6.4			$ Werbung Mehr Nachrichten zur Calumet Specialty Products Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 24.04.24 - PR Newswire Oxford Instruments Plc - Holding(s) in Company 24.04.24 - PR Newswire Oxford Instruments Plc - Holding(s) in Company SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59