Loss Widens For Calumet Specialty
Indianapolis-based Calumet Specialty Products Partners LP (Nasdaq: CLMT) is reporting a full-year net loss of $328.6 million in 2016, compared to a loss of $139.4 million the previous year. Chief Executive Officer Tim Go says the company is entering 2017 with "cautious optimism."
Calumet is also reporting a fourth quarter net loss of $79.6 million, compared to a loss of $116.8 million during the same period the previous year. The company says sales volumes increased 9 percent during the quarter, but a rise in crude oil prices led to a decline in gross profit.
"2016 was a year of transition, stabilization and foundation building for our Partnership," said Go. "We refocused our long-term vision on our core specialty business, took decisive action to enhance our liquidity profile, and began the process of optimizing our asset portfolio through the sale of Dakota Prairie Refining, LLC and by shedding some third party terminal agreements. "We believe our strategy to eliminate waste, drive efficiencies and develop best practices across our organization is working. We completed additional cost reductions early in 2017, through ongoing headcount rationalization and other waste reduction initiatives. We believe these efforts will remove an additional $10 million to $20 million in annualized SG&A expenses."
The company recently named West Griffin executive vice president and chief financial officer. His predecessor, Patrick Murray, was named to the newly-created position of chief accounting officer.