U.S-based Calumet Specialty Products posted a 1Q’16 loss of $67.7m or 87 cents per share, as compared to a profit of $23.8m, or 27 cents per share, a year ago. The news comes on the company’s earlier announcement that it expected a net loss between $59 – 83m for the same period.
Revenues for the 1Q’16 period declined 29% yoy to $713m (1Q’15: $1bn).
The company, which owns 10 refineries across the U.S., attributed the dismal performance to the effect of collapsing oil prices as its fuel products business suffered due to weaker refining margins.
In light of the weak results, the company’s CEO Tim Go stated that the company would look to divest some of its assets, including the $430m refinery that opened a year ago in western North Dakota.
The refinery, with an operating capacity of 20,000 bpd, currently processed output worth 15,000 bpd. Calumet plans to operate the refinery at 75% of capacity due to the weakening commodity prices.