EBITDA margin rises to highest in three years
Lower costs, record production, high sales volumes boost profitability
Strong margins add to broader trend of firmer margins among leading refiners
US refiner Calumet’s specialty products unit posted its highest profit margin in three years in the third quarter, driven by lower operating costs, record production and persistently-high sales volumes.
The unit’s EBITDA margin climbed to 11.8% in the three months to end-September, up from 10.6% in the second quarter and well above the sub-10% levels seen throughout 2024.
It also posted its highest EBITDA since end-2022 even as sales slipped year-on-year for a fourth straight quarter.
“Specialties provide stable, strong, and growing baseline earnings,” Calumet CEO Todd Borgmann said in an earnings call.
US base oils prices eased in the third quarter amid softer supply-demand fundamentals.
But their premium to feedstock prices stayed steadier than usual, especially for light grades, at a time of year when they typically weaken.
Calumet’s strong specialty products profit margin reflected a broader trend of firm margins among leading base oils refiners worldwide.