Calumet Specialty Products Partners LP took a huge loss in the second quarter, mostly due to the company’s divestiture of a money-losing refinery in North Dakota.
The Indianapolis-based oil company on Thursday reported a loss of $147.9 million, or $1.89 per share, in the second quarter, compared with a profit of $2.5 million, or 2 cents per share, in the same quarter of 2015.
The company said almost all of the loss—$147.3 million—was attributable to a non-cash charge for its divestiture of its 50 percent interest in Dakota Prairie Refining.
Calumet and WBI Energy, a subsidiary of North Dakota-based MDU Resources Group, had been equal partners in Dakota Prairie Refining, which developed and operated a $430 million refinery in Dickinson, North Dakota. The two companies formed a partnership to build the refinery in 2013, and the facility began selling diesel fuel in May 2015.
Calumet and MDU exited that partnership in June after the refinery lost millions of dollars. Calumet said it sold its interest in Dakota Prairie to WBI Energy, effective June 27. WBI then sold Dakota Prairie to San Antonio-based Tesoro Corp. for an undisclosed price.
Calumet reported second quarter earnings adjusted earnings before interest, taxes, depreciation and amortization of 70 cents per share.
Revenue declined from $1.2 billion a year ago to $972.9 in the latest quarter.
Calumet shares dipped 16 cents Thursday morning, to $4.51 each. The stock has fallen 77 percent since the start of the year.