Calumet Specialty Products Partners, L.P. (CLMT) saw its loss narrow to $79.60 million in the quarter ended compared with $116.80 million, a year ago. Revenue during the quarter grew 5.45 percent to $946.90 million from $898 million in the previous year period. Gross margin for the quarter expanded 495 basis points over the previous year period to 8.50 percent. Operating margin for the quarter stood at negative 2.98 percent as compared to a negative 9.69 percent for the previous year period.
Operating loss for the quarter was $28.20 million, compared with an operating loss of $87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.70 million compared to negative $37.60 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.93 percent for the quarter compared to negative 4.19 percent in the last year period.
"2016 was a year of transition, stabilization and foundation building for our Partnership," stated Tim Go, Chief Executive Officer of Calumet. "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. Most of our leadership team was upgraded through the addition of significant talent with deep and diverse industry experience. Lastly, we implemented and executed an aggressive three-year operations excellence strategy and surpassed our 2016 self-help expectations, generating an estimated $89 million of our annual Adjusted EBITDA, which helped us offset a challenging fuels refining environment."
Operating cash flow drops significantly
Calumet Specialty Products Partners, L.P. has generated cash of $4.10 million from operating activities during the year, down 98.91 percent or $372.30 million, when compared with the last year. The company has spent $154.20 million cash to meet investing activities during the year as against cash outgo of $389 million in the last year. It has incurred net capital expenditure of $137.50 million on net basis during the year, down 59.42 percent or $201.30 million from year ago.
Cash flow from financing activities was $148.70 million for the year, up 1,432.99 percent or $139 million, when compared with the last year.
Cash and cash equivalents stood at $4.20 million as on Dec. 31, 2016, down 25 percent or $1.40 million from $5.60 million on Dec. 31, 2015.
Debt moves up
Calumet Specialty Products Partners, L.P. has witnessed an increase in total debt over the last one year. It stood at $1,997.20 million as on Dec. 31, 2016, up 17.49 percent or $297.30 million from $1,699.90 million on Dec. 31, 2015. Total debt was 73.29 percent of total assets as on Dec. 31, 2016, compared with 57.73 percent on Dec. 31, 2015.
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