2024-05-18 23:53:51 ET
Summary
- Calumet Specialty Products reported results negatively impacted by rapidly changing markets in its 1st Quarter.
- Much of the negative impacts are likely recovered in the natural cycling of the energy markets on a full-year basis.
- MRL, the low-cost renewable producer, now generates positive cash flows, which are likely to significantly increase over the next two to three quarters.
- As business improves, the company seems poised to generate plenty of cash necessary to pay its bills.
Calumet Specialty Products Partners ( CLMT ) recently reported 1st Quarter results. They reflected extreme negative market effects from within the fossil energy markets. Extreme upward volatility with crude oil pricing plus recovery at MRL contributed to unsavory numbers. Admitted or not, America is also experiencing a rather deep recession. Two recent reports highlight a truer nature of the country's financial circumstances. On Friday, May 10, the University of Michigan released its sediment report showing a completely unexpected 9.8 drop. The drop was a 7-sigma event. The current value now rivals 2020. In another article from OilPrice, the headline reads, U.S. Gasoline, Diesel Demand Hit Seasonal Low Not Seen Since COVID . Details show demand falling for distillates to levels experienced in May of 2020. The combined demand of gasoline and distillates is so weak that the crack spread for the two dropped to COVID levels in 2020. The interest rate plus other governmental practices created this environment. How long, a debated matter. In-spite, company management maintained its posture going forward....
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Calumet Specialty Products Endured Rainy Days With Blue Skies Ahead