INDIANAPOLIS - Calumet Specialty Products (NASDAQ:CLMT) Partners, L.P. (NASDAQ: CLMT) reported a narrower-than-expected loss for the first quarter of 2024, with a basic net loss per unit of -$0.51, which was $0.19 better than analyst estimates of -$0.70.
The company's revenue for the quarter was also above expectations, coming in at $1.01 billion compared to the consensus estimate of $825.93 million. Following the announcement, the company's shares rose by 2%, indicating a positive market response to the earnings news.
The first quarter results included a net loss of $41.6 million, which was a significant shift from the net income of $18.6 million reported in the first quarter of the previous year. Despite the loss, the company's Adjusted EBITDA stood at $21.6 million, although this too was lower compared to the $77.3 million reported in the same period last year.
Calumet's Specialty Products and Solutions (SPS) segment reported Adjusted EBITDA of $41.8 million, a decrease from the $76.0 million in the prior year, attributed to a return to near mid-cycle levels in the fuel market. The Performance Brands (PB) segment saw a decrease in Adjusted EBITDA to $13.4 million from $16.4 million, partially due to a $5.0 million insurance claim included in the previous year's results.
The Montana/Renewables (MR) segment reported a negative Adjusted EBITDA of -$14.5 million, which was a drop from the positive $4.8 million EBITDA in the first quarter of 2023. The downturn was due to the impact of high priced inventory and seasonal weakness in fuels and wholesale asphalt margins that lagged the sharp increase in crude costs.
CEO Todd Borgmann commented on the quarter, highlighting the company's strategic progress, "We're anticipating an exciting and strategically important spring and summer at Calumet as we remain on pace to complete our C-Corp conversion and demonstrate the competitive advantages of Montana Renewables."
Calumet also completed a successful turnaround at its Shreveport facility during the quarter and reported sequential monthly financial and operational improvement at Montana Renewables. The company remains the largest Sustainable Aviation Fuel (SAF) producer in the Western Hemisphere with an annual capacity of 30 million gallons.
The company's plan to convert its structure from a Master Limited Partnership to a C-Corp is on track, which is expected to position Calumet for strategic advantages and growth opportunities.
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