06 November 2013 12:54 [Source: ICIS news]
LONDON (ICIS)--Calumet Specialty Products on Wednesday reported a net loss for the third quarter of $34.8m (€25.8m) compared to a net income of $42.4m for the same quarter in 2012 because of a significant decline in both fuel and specialty products margins.
The US-based producer of specialty hydrocarbon and fuel products added that third-quarter 2013 results also include $2.4m in non-cash unrealised derivative gains, compared to $22.1m of non-cash unrealised derivative losses in the third quarter 2012.
Third-quarter sales rose to $1.51bn from $1.18bn in the same period last year on higher volumes.
However adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter fell steeply to $38.3m compared with $121.3m in the third quarter 2012.
Calumet said sales prices for gasoline, lubricating oils and asphalt during the third quarter 2013 did not keep pace with an escalation in crude oil prices, adding that results during the period were further impacted by a planned 30-day turnaround at its 10,000 bbl/day Great Falls, Montana, refinery during which the refinery did not produce finished products.
"Higher crude oil prices adversely impacted refined product margins within both our fuel and specialty products segments during the third quarter," said Bill Grube, vice chairman and CEO of Calumet Specialty Products Partners.
"During September, we conducted 30 days of planned maintenance at our Montana refinery, which further impacted profitability in the quarter."
Looking ahead, Grube said: “During October, we began blending and selling finished gasoline at our San Antonio refinery for the first time since we took ownership of the facility in January 2013.
"During the first quarter of 2014, we expect to complete an expansion of our crude unit at San Antonio to increase capacity from 14,500 bpd [bbl/day] to 17,500 bpd, a move which will allow us to sell additional fuel products into the surrounding market.
"Collectively, we anticipate these two projects should result in $15-20m in incremental annualised adjusted EBITDA upon completion," he added.
Grube also said the greenfield construction of the group’s North Dakota diesel refinery joint venture with MDU Resources is expected to be completed during the fourth quarter of 2014, while its Montana refinery capacity expansion project is now expected to be completed during the first quarter of 2016.
($1 = €0.74)
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