MRL Q1 Results Impacted by Prior Feedstock Purchases
4/16 8:38 AM
MRL Q1 Results Impacted by Prior Feedstock Purchases
OAKHURST, N.J. (DTN) --- Calumet Specialty Products Partners, L.P. in a
first quarter operational update said Montana Renewables, which resumed
production in December 2023, operated well throughout the quarter as volumes
sequentially improved each month but results would be impacted by higher priced
feedstock overhang.
"First quarter results for the MRL business are expected to reflect the
significant burden of higher priced feedstock purchased prior to the summer
2023 slowdown related to a steam system issue. Entering the second quarter of
2024, the old, expensive feedstock has been processed," the update read.
Calumet continued that results for the first quarter will reflect a planned
turnaround at its Shreveport site in March, but that site begins the second
quarter with solid operating momentum. During the first quarter Calumet said it
was negatively impacted by seasonal weakness in its fuels and asphalt products,
particularly in PADD IV.
"A year after commissioning began, our Montana Renewables business is now
consistently processing approximately 12,000 barrels per day of renewable
feedstock, including over 10,000 barrels per day of feed from our next
generation feed pretreater," said Todd Borgmann, CEO of Calumet. "With these
key operational milestones now reached, stable operations have allowed us to
process an overhang of old expensive feedstock inventory. Given this progress,
we are optimistic that we will achieve representative financial performance at
Montana Renewables going forward, clearly demonstrating our strong competitive
position of the business. Our advantaged feed and technology positions are
complemented by agile product marketing and our position as the largest
producer of sustainable aviation fuel in the Western Hemisphere, with current
production levels running at a 30 million gallon per year pace. Significant
further expansion of SAF production remains a strategic priority, and we remain
encouraged by the well-advanced DOE loan program discussions."
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