Calumet Specialty shows $23M loss in delayed quarterly report

Indianapolis-based Calumet Specialty Products Partners LP beat analyst sales forecasts during the third quarter but still ended up posting a loss for the period.

The refinery company’s much-delayed quarterly financial report, released Thursday morning, shows that the company lost $23.6 million, or 30 cents per share, during the third quarter, compared with a loss of $33.4 million, or 42 cents per share, in the same period of 2016. A consensus of analysts had expected Calumet to post a profit of 25 cents per share.

The report shows third-quarter revenue of $1.1 billion, up from $967 million during the year-ago period. Analysts had expected quarterly sales of $908 million.

Calumet had originally planned to release its third-quarter report on Nov. 10, but that release was delayed because the company ran into issues implementing a new computer software system. The company booked about $10 million in special charges during the quarter, some of which were related to the implementation of that system.

In its report, Calumet cited two factors that negatively impacted third-quarter performance: supply chain disruptions caused by Hurricane Harvey and the implementation of the new software system.

“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,” CEO Tim Go said in written comments.

Shipping has since returned to normal levels, Go added.

Despite the loss, Go said Calumet continues to improve its overall performance.

In particular, Go said, the company has made “dramatic improvements” to reduce its debt leverage, a major company goal. Calumet’s debt currently stands at 6.6 times earnings before interest, taxes, depreciation and amortization, or EBITDA. A year ago, the company’s leverage was 21.8 times EBITDA.

Calumet makes custom oils, solvents and waxes at 11 manufacturing facilities in Louisiana, Montana, Pennsylvania, Texas, New Jersey and Missouri.

Shares of Calumet were trading at $7.87 each Thursday morning, down 11 percent from Wednesday’s close.