Calumet Specialty Released Its Preliminary 3Q17 Results
On November 10, 2017, Calumet Specialty Products Partners (CLMT) announced that its 3Q17 results will be delayed. Its results should have been announced on November 10. According to the company, the delay was due to the ongoing implementation of the ERP (enterprise resource planning) system, which impacted its “financial reporting capabilities.” The ERP system went live on September 1, 2017.
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Calumet Specialty also attributed the delay to the sale of its Superior refinery, which was completed on November 8, 2017. According to the company, these two factors resulted in additional time being taken to complete the financial statements and to get them reviewed by its external auditors.
Calumet Specialty Products Partners reported its preliminary 3Q17 results on November 10. As the above table shows, the company expects 3Q17 sales to be above $1 billion. It expects to end the quarter with an available liquidity above $400 million. The estimate doesn’t include $492 million that Calumet received from the close of the Superior refinery sale on November 8.
Commenting on the performance drivers across its three businesses, Tim Go, Calumet’s CEO, said, “This is expected to include year-over-year performance improvement in our specialty products segment driven by continued tight supply and self-help initiatives, strong operational performance from our fuel plants after Hurricane Harvey, and the strongest financial performance in our oilfield services segment in 11 quarters, partially offset by rising feedstock costs and temporary disruptions in the supply chain as a result of Hurricane Harvey and the implementation of our ERP system.”
For an overview of CVR Refining’s (CVRR) 3Q17 results, read CVR Refining Reported Strong 3Q17 Results, Stock Rose 11%. Recently, Alon USA Partners (ALDW) announced a merger with Delek US Holdings (DK). To learn more, read Delek US Holdings to Acquire Alon USA Partners in All-Stock Deal.
In the next part, we’ll discuss how Calumet Specialty Products Partners is positioned after the sale of its Superior refinery.