Benzinga - by Akanksha Bakshi, Benzinga Editor.
Calumet Specialty Products Partners LP (NASDAQ: CLMT) reported a third-quarter FY23 sales decline of 1.3% year-over-year to $1.15 billion, beating the consensus of $1.04 billion.
CLMT reported net income per unit of $1.26, beating the consensus of 26 cents.
Adjusted EBITDA was $75.5 million compared to $127 million a year ago, margin contracted to 6.6% from 10.9% in 3Q22.
The Q3 was driven by a supportive market and strong commercial execution, partially offset by transient operational issues in Shreveport and Montana MRL hydrogen steam drum replacement installed.
Specialty Products and Solutions' adjusted EBITDA was $38.7 million, compared to $131.7 million a year ago. Segment production volume was limited largely due to an operational issue with a specialty production unit in Shreveport, which has since been repaired.
Performance Brands' adjusted EBITDA rose to $13.2 million from $8.5 million in the prior year, reflecting improved industrial volumes and increased unit margins across the board as input costs have stabilized.
Montana/Renewables' adjusted EBITDA improved to $38.6 million from $11.3 million a year ago.
Cash and equivalents stood at $13.7 million at the end of the quarter.
Total facility production in Q3 increased by 10% Y/Y to 82,343 bpd.
"Unfortunately, we experienced transient operational issues at our Shreveport and Montana Renewables facilities. As we previously announced, we discovered a crack in the steam drum within our newly constructed renewable hydrogen plant that required replacement," CEO Todd Borgmann said.
"At Shreveport, plugging of our catalytic dewaxing unit resulted in the loss of approximately 300,000 barrels of specialty production during the quarter. The unit was fully repaired, and our Shreveport plant is back to normal production levels," stated Borgmann.
These "one-time events" cost the company over $50 million of lost profit opportunity during the quarter, Borgmann added.
Price Action: CLMT shares are trading higher by 18.15% at $15.36 premarket on Thursday.
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