INDIANAPOLIS - Calumet Specialty Products Partners (NASDAQ: NASDAQ:CLMT) disclosed its financial results for the fourth quarter ended December 31, 2023, revealing a loss per share (EPS) of -$0.59, which was notably below the analyst consensus estimate of -$0.25.
Despite the larger-than-expected loss, the company's revenue for the quarter was $976.5 million, surpassing the consensus estimate of $862.17 million.
The company's CEO, Todd Borgmann, commented on the year's strategic developments, including the successful return to normal operations at Montana Renewables (MRL) after replacing a cracked steam drum and the Specialties business achieving its fifth consecutive year of margin growth. Borgmann highlighted the challenges faced during the year, such as reduced operations due to the steam drum replacement and weather events that impacted the Shreveport facility. He also noted the company's plans to convert from a Master Limited Partnership to a C-Corp by mid-2024, aiming to broaden the investor base.
The Specialty Products and Solutions (SPS) segment reported Adjusted EBITDA of $75.6 million for the fourth quarter and $251.2 million for the full year, compared to $96.1 million and $379.4 million for the same periods a year ago. The Performance Brands (PB) segment saw Adjusted EBITDA of $6.1 million during the fourth quarter and $47.9 million for the full year, marking an improvement from the previous year's figures. The Montana/Renewables (MR) segment, however, reported a loss of $(25.8) million in Adjusted EBITDA for the fourth quarter and a full-year figure of $30.2 million, both declines from the prior year.
Calumet also announced the entry into a note purchase agreement to issue $200 million of 9.25% Senior Secured First Lien Notes due 2029 and the issuance of conditional notices to redeem outstanding notes due in 2024 and 2025.
The company's financial results were restated due to the attribution of net loss from Montana Renewables Holdings LLC to noncontrolling interest, with minimal impact on Adjusted EBITDA for all periods described.
Overall, the company's fourth-quarter performance showed resilience in revenue generation despite a challenging operational environment, with strategic initiatives set to unfold in the upcoming year.
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