Calumet Specialty Products Partners, L.P. last Wednesday reported net income for the quarter ended March 31, 2013 of $46.0 million compared to $51.9 million for the same quarter in 2012. First quarter 2013 results include $24.5 million of noncash unrealized derivative gains, versus $26.0 million of noncash unrealized derivative gains in the first quarter of 2012.

Adjusted EBITDA was $80.0 million for the quarter ended March 31, 2013, as compared to $69.7 million in the first quarter of 2012. Distributable Cash Flow for the quarter ended March 31, 2013 was $26.4 million, versus $39.2 million in the same quarter in 2012. The $10.3 million increase in Adjusted EBITDA quarter over quarter was largely attributed to a $50.2 million increase in gross profit that was partially offset by a $22.8 million increase in total in selling and general and administrative expenses ($6.2 million of which was noncash amortization expense) and an $18.0 million decrease in realized derivative gains.

Adjusted EBITDA resulting from acquisitions consummated subsequent to the 2012 period were $18.6 million in the first quarter of 2013, while Calumet's legacy assets generated Adjusted EBITDA of $61.4 million quarter over quarter.

Net income for the first quarter 2013 decreased $5.9 million quarter over quarter primarily due to an $18.0 million decrease in realized derivative gains, an $11.4 million increase in general and administrative expenses, an $11.4 million increase in selling expenses ($6.2 million of which was noncash amortization expense), a $7.9 million increase in transportation expense and a $6.2 million increase in interest expense, all partially offset by a $50.2 million increase in gross profit.

Specialty products segment gross profit decreased 5.0%, or $3.3 million, quarter over quarter due primarily to a decrease in the average sales price per barrel (excluding the impact of Calumet's acquisitions) of lubricating oils and lower sales volumes for lubricating oils, solvents and waxes. These reductions to gross profit were partially offset by $9.6 million of incremental gross profit generated from the company's Montana and Royal Purple acquisitions.

Lubricating oils volumes for the first quarter 2013 was 12,127 bpd compared to 14,322 bpd in the same quarter the previous year.

"Although our results were adversely impacted by reliability issues at our Shreveport refinery during the first quarter, the second quarter is off to a good start, supported by strong refining economics and improved utilization at our key production facilities. Beginning in early April, both demand and pricing for products sold in our core markets improved above first quarter levels," stated Bill Grube, Vice Chairman and Chief Executive Officer of Calumet Specialty Products Partners.