Calumet Specialty Products Partners, L.P. reported a net loss for the fourth quarter ended December 31, 2013 of $15.5 million, compared to net income of $45.7 million for the same quarter in 2012. Fourth quarter 2013 results include $2.8 million of noncash unrealized derivative gains compared to $7.5 million of noncash unrealized derivative gains in the prior year period. For the full year 2013, the Partnership reported net income of $3.5 million on Adjusted EBITDA of $241.5 million. Adjusted EBITDA was $53.2 million for the fourth quarter 2013, as compared to $91.3 million in the prior year period.
The Partnership's financial performance during the fourth quarter 2013 was adversely impacted by a significant year over year decline in gross profit contribution from both the Specialty Products and Fuel Products segments. Gross profit of the Specialty Products segment was impacted by a combination of factors, including profit margins returning to normalized levels when compared to the elevated margins achieved during the prior year period and higher operating costs, partially offset by higher sales volumes, primarily solvents and waxes. Gross profit of the Fuel Products segment was impacted by a combination of factors, including a year over year decline in benchmark refined product margins partially offset by improved results from derivative instrument settlements, lower planned utilization at the Shreveport refinery, and a year over year increase in operating costs related to compliance with the U.S. Renewable Fuels Standard.
Specialty products gross profit decreased 10.5%, or $9.3 million, in the fourth quarter 2013, compared to the fourth quarter 2012. The year over year decline was primarily attributable to profit margins in 2013 returning to normalized levels when compared to the elevated margins achieved during the prior year period and higher operating costs, partially offset by higher sales volumes, primarily solvents and waxes.
Lubricating oils volume during the fourth quarter was 13,247 bpd compared to 13,787 bpd in the similar period in 2012, and 1,175 bpd of packaged and synthetic specialty products for the quarter compared to 1,379 bpd during the similar period in 2012. For the full year, Calumet produced 13,247 bpd of lubricating oil compared to 14,524 bpd in the full year 2012, and 1,934 bpd of packaged and synthetic specialty products for the full year compared to 1,351 bpd during the similar period in 2012. These volumes include production at Royal Purple, Bel-Ray, TruSouth and Missouri facilities.
"Although our full year results were impacted by planned facility-wide maintenance turnarounds at our Superior and Montana refineries during 2013, the Partnership is poised for improved profitability entering 2014," stated Bill Grube, Vice Chairman and Chief Executive Officer. "Last year, we announced more than $500 million in high-return organic growth projects slated for completion between now and 2016, we acquired the San Antonio refinery, the Bel-Ray Company and crude oil logistics assets, we broke ground on our greenfield North Dakota refinery joint venture, and we successfully completed a series of successful financing efforts to support these projects."
"We anticipate a strong year ahead for packaged and synthetic specialty products, driven in part by the highly anticipated launch of our Royal Purple brand of high-performance synthetic lubricants into more than 2,400 Wal-Mart stores nationally," noted Grube. "With the recent acquisition of Bel-Ray, we intend to further expand the international sales of our packaged and synthetic specialty products."
Calumet stated that it continues to make progress on a project that is expected to double esters production capacity at its Missouri esters plant from 35 to 75 million pounds per year. Esters are a key base stock used in the aviation, refrigerant and automotive lubricants markets. The Partnership anticipates completion of the project during the second quarter 2015.
