Winter storm contributes to 1Q loss for Calumet Specialty Products

Indianapolis-based Calumet Specialty Products Partners LP lost $146.1 million, or $1.82 per share, during the first quarter, which the company said was due in part to a severe winter storm that affected its Gulf Coast refineries.

In comparison, the company lost $14.4 million, or 18 cents per share, during the first quarter of 2020.

The first-quarter losses push Calumet’s total losses over the past seven years above $1 billion. The company last turned an annual profit in 2013, when it earned $3.5 million. Between 2014 and 2020, Calumet lost a cumulative $931.7 million.

Calumet makes nearly 3,400 specialty petroleum-based products including fuels, lubricating oils, solvents, waxes and other items. It operates 10 production and packaging facilities around the United States, including six in Texas and Louisiana.

The company posted first-quarter revenue of $600.3 million, down from $692.6 million during the same period last year.

“Our first quarter results reflect lower plant production volumes due to severe winter storms in the Gulf Coast region as well as scheduled maintenance at Shreveport [Louisiana],” CEO Steve Mawer said in the company’s quarterly financial release, issued Friday morning. “Our full plant turnaround was on track for successful completion as [winter storm] Uri visited North West Louisiana, presenting the challenge of a hard freeze on an entirely idled plant. Our team worked tirelessly to repair the damage and bring the plant back up safely.”

Mawer also noted that demand for the company’s products “remains extremely robust.”

Winter Storm Uri, which affected broad swaths of the country from Feb. 12-16, brought snow, ice and record low temperatures to the Gulf Coast.

Calumet’s production volume during the first quarter was 62,281 barrels per day, down from 87,898 barrels per day during the same period a year earlier.

In other news, Calumet provided an update on its previously announced plans to convert its Great Falls, Montana crude oil refinery into a renewable diesel refinery. The company said it is having ongoing conversations with yet-unnamed third-party equity investors on the project and expects renewable diesel production to begin in mid-2022.

Calumet released its financial report before the start of trading on Friday. Shares of the company were trading at $5.90 late Friday morning, down 7% from Thursday’s closing price.

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