Business
Calumet Specialty Products Partners, L.P. Launches 2020 Phase II Self-Help Initiatives Expected to Contribute Approximately $40 Million of Incremental Adjusted EBITDA
Includes multiple Specialty Products earnings growth initiatives and G&A reductions INDIANAPOLIS, Jan. 21, 2020 /PRNewswire/ -- Calumet Specialty Products
About this update from Calumet, Inc
[{"type":"text","content":"Includes multiple Specialty Products earnings growth initiatives and G&A reductions\n\n\n\n INDIANAPOLIS, Jan. 21, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the \"Partnership\" or \"Calumet\"), a leading independent producer of specialty hydrocarbon and fuels products, today released details on its 2020 expectation for Phase II of its Self-Help program. This three-year program was launched in early 2019 following the successful completion of the Partnership's prior Phase I program that delivered $182 million of incremental Adjusted EBITDA from 2016 through 2018. Phase II of the program remains on track to deliver an expected $100 million of incremental Adjusted EBITDA from 2019 through 2021.\nStrategic Highlights:\nDelivered approximately one third, or $30 million, of the three-year (2019-2021) $100 million of incremental Adjusted EBITDA Phase II Self-Help goal in 2019 Launched new specialty products growth initiatives, which include two debottlenecking projects, further rationalization and replacement of low margin tolling agreements, and additional finished lubricant expansion projects Announced new expense reduction plans designed to right-size General and Administrative (G&A) spending, which are expected to yield annual cost savings of approximately $20 million \"Our Phase I and Phase II Self-Help efforts have delivered over $210 million in incremental Adjusted EBITDA since 2016, and these results have been instrumental in growing our bottom line profitability and providing an improved platform for future growth,\" said Tim Go, Chief Executive Officer of Calumet. \"We plan to continue driving specialty products growth, as well as improving our transportation, logistics and procurement costs.\"\nGo continued, \"In 2020, we are prioritizing a number of strategic growth initiatives designed to accelerate our transformation, specifically in the lubricating oils and finished lubricants businesses. We believe these collective efforts and a stronger cultural focus on driving organic growth can help us deliver approximately $20 million of incremental Adjusted EBITDA in 2020.\"\nGo concluded, \"Lastly, given the divestiture of multiple non-core assets over the last few years and the improved business processes and data analytics resulting from our ERP conversion, we are engaged in reorganizing and...