Calumet Specialty Products Partners, L.P. has reported its first quarter 2024 results, revealing a net loss of $41.6 million, or limited partners' interest of $0.51 basic net loss per unit. This marks a significant difference from the first quarter of 2023, when the company reported a net income of $18.6 million and limited partners' interest basic net income per unit of $0.23.
The adjusted EBITDA for the first quarter of 2024 was $21.6 million, a substantial decrease from the same period in 2023, when the company reported adjusted EBITDA of $77.3 million. This represents a considerable decline in the company's earnings before interest, taxes, depreciation, and amortization.
The company's segments also experienced changes in their financial performance. The Specialty Products and Solutions (SPS) segment reported adjusted EBITDA of $41.8 million during the first quarter of 2024, a significant decrease from the $76.0 million reported in the first quarter of 2023. The Performance Brands (PB) segment reported adjusted EBITDA of $13.4 million in the first quarter of 2024, down from $16.4 million in the same quarter of the previous year. Additionally, the Montana/Renewables (MR) segment reported $(14.5) million of adjusted EBITDA during the first quarter of 2024, a notable decrease from the $4.8 million reported in the prior year period.
In terms of production, the company's total facility production volume for the first quarter of 2024 was 72,266 barrels per day, a decrease from 73,222 barrels per day in the same period of 2023.
The company also issued and sold $200.0 million in aggregate principal amount of a new series of the issuer's 9.25% senior secured first lien notes due 2029 in a private placement transaction in March 2024. The net proceeds were used to redeem all of its outstanding 9.25% senior secured first lien notes due 2024 and $50.0 million aggregate principal amount of its outstanding 11.00% senior notes due 2025.
Calumet Specialty Products Partners, L.P. is on track to convert its structure from a master limited partnership to a C-Corp. The company's CEO, Todd Borgmann, is optimistic about the future, citing the successful turnaround at the Shreveport facility and sequential monthly financial and operational improvement at Montana Renewables.
The company's financial and operational results indicate a challenging first quarter of 2024, with declines in net income, adjusted EBITDA, and production volume compared to the same period in 2023. Today the company's shares have moved -0.7% to a price of $16.04. For the full picture, make sure to review Calumet Specialty Products's 8-K report.
