Calumet Specialty Products Partners L.P. Reports Operating Results (10-Q)

Calumet Specialty Products Partners L.P. (CLMT, Financial) filed Quarterly Report for the period ended 2010-03-31.

Calumet Specialty Products Partners L.p. has a market cap of $546.5 million; its shares were traded at around $15.49 with a P/E ratio of 9 and P/S ratio of 0.3. The dividend yield of Calumet Specialty Products Partners L.p. stocks is 11.7%.CLMT is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the three months ended March 31, 2010 and 2009, approximately 52.8% and 45.2%, respectively, of our sales volume and 74.0% and 75.8%, respectively, of our gross profit was generated from our specialty products segment while approximately 47.2% and 54.8%, respectively, of our sales volume and approximately 26.0% and 24.2%, respectively, of our gross profit was generated from our fuel products segment. The specialty petroleum products refining market and, in general, the overall refining industry has continued to experience economic challenges. As fuel products crack spreads declined during 2009, numerous refiners announced reductions in refinery throughput rates, the idling of refinery assets and refinery closures. While specialty products segment sales volumes declined by 8.9% for the full year 2009 as compared to 2008, we noted an improving demand environment during the third and fourth quarters of 2009. This improvement continued into the first quarter of 2010 as specialty products sales volumes increased 10.9% over the first quarter of 2009. In addition, our average crude oil costs were relatively stable during the third and fourth quarters of 2009. This allowed our specialty products segment to generate gross profit margins of 12.8% and 10.2%, respectively, in those periods. Crude oil costs continued to remain relatively stable in the first quarter of 2010 resulting in a gross profit margin of 7.7%, which is lower than the prior quarters due to decreased production resulting in higher operating costs per barrel sold.

Fuel products segment sales for the three months ended March 31, 2010 decreased $18.2 million, or 9.2%, due to an 18.1% decrease in sales volume as compared to the first quarter of 2009. The decrease in sales volume was primarily due to the decision to reduce crude oil run rates at our Shreveport refinery during the entire first quarter of 2010 because of the poor economics of running additional barrels. In addition, losses on our fuel products cash flow hedges reco

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