Calumet Specialty Products Shares Slip After Missing Q2 Estimates

Calumet Specialty Products Partners LP CLMT reported a second-quarter FY23 sales decline of 28.5% year-over-year to $1.02 billion, missing the consensus of $1.09 billion.

CLMT reported a net loss per unit of $(0.23), missing the consensus of $(0.07).

Adjusted EBITDA was $67.7 million compared to $175.8 million a year ago, margin contracted to 6.6% from 12.4% in 2Q22.

Specialty Products and Solutions' adjusted EBITDA was $61.0 million, compared to $123.5 million a year ago. Segment production volume was limited due to impacts from severe weather in Northwest Louisiana during the quarter.

Performance Brands' adjusted EBITDA rose to $12.2 million from $ 2.7 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 declined to $12.6 million from $68.6 million a year ago.

Net cash used in operating activities for the first six months totaled $(52.6) million, compared to cash provided of $86.8 million a year ago. Cash and equivalents stood at $36 million in Q2.

Total facility production in Q2 declined by 12.2% Y/Y to 75,908 bpd.

"Calumet and Montana Renewables took a series of strategic steps in the second quarter. We demonstrated Montana Renewables' ability to operate at over 12,000 bpd, de-risked our next generation feedstock pre-treatment technology, and became North America's largest Sustainable Aviation Fuel producer. With these milestones met, we intend to demonstrate the financial competitiveness of Montana Renewables in the third quarter, and we remain on track to accomplish our strategic objectives of deleveraging Calumet and unlocking unitholder value through a potential partial monetization of Montana Renewables," said Todd Borgmann, CEO. 

Price Action: CLMT shares are trading lower by 1.33% at $15.80 on the last check Friday.