High fuel margins help Calumet swing to Q1 profit

Calumet Specialty Products reported first-quarter net income of $23.8 million, compared with a loss of $49.8 million in the 2014 first quarter, the US-based company said on Wednesday.

"Realized margins within our fuel products segment more than doubled in the first quarter of 2015, versus the prior year period," said interim CEO Bill Hatch.

Gross profit for the three months ended March 31 was up 56% from the prior year to $195.2 million. Meanwhile, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 51% to $124.9 million, even as sales fell to $1.02 billion from $1.34 billion in the 2014 first quarter.

"Consistent operational reliability at our refineries, coupled with elevated gross profit margins primarily within our fuel products segment, contributed to record first-quarter adjusted EBITDA," Hatch said.

"As we enter what has traditionally been a seasonally strong period of the year for our fuel products segment, we anticipate solid demand for our gasoline, diesel and asphalt products," he added.