HF Sinclair’s lubricants and specialty products segment’s loss from operations represented a large decline from a $5 million loss from operations in the third quarter, dropping from a $62.4 million income in operations in the same period last year.

This decrease was largely driven by first-In, first-out impact from consumption of higher priced feedstock inventory, resulting in lower margins, the company said.  The first-in, first-out inventory accounting method assumes that the first unit – the oldest item available in inventory – that makes its way into inventory is the unit sold first.

The segment’s revenue from external customers rose 23% to $820.6 million, compared to $666 million.

The lubricants and specialty products segment includes Petro-Canada Lubricants and its refinery in Mississauga, Ontario. The refinery makes products such as base oils, white oils, specialty products and finished lubricants, along with specialty lubricants from HollyFrontier’s refineries in Tulsa, Oklahoma.

Quaker Chemical

Quaker Chemical – also known as Quaker Houghton – reported net income declined to $25.9 million in the third quarter, compared with $31.1 million.

Net sales increased 10% to $492.2 million, improving from $449.1 million. The company cited as key factors an increase in selling price and product mix that was primarily attributed to double-digit price increases in all segments, implemented to offset raw material and other cost inflation. This was partially offset by a decline in organic sales volumes, which the company attributed mainly to softer market conditions, particularly in Europe and Asia-Pacific, the wind-down of tolling agreement for products previously divested related to the Quake Houghton combination and the impact of the war in Ukraine.

“We executed on our value-based pricing actions, realizing 25% year-over-year pricing gains, remained vigilant on costs, and drove an improvement in our margins,” CEO and President Andy Tometich said in Quaker’s earnings news release. Volumes were impacted by a softer end market environment, primarily in Europe and China, Tometich added.

Perimeter Solutions

Perimeter Solution’s specialty products segment – formerly known as oil additives – reported that adjusted earnings before interest, taxes, depreciation and amortization rose 512% to $15.3 million, compared to $2.5 million.

Net sales for specialty products jumped 68% to $38.5 million, up from $23 million.

Headquartered in Clayton, Missouri, Perimeter’s specialty products business manufactures and sells phosphorus pentasulfide, which is mainly used in preparation of lubricant additives, including zinc dialkyldithiophosphates that provide anti-wear protection to engine components. The company manufactures the chemical at plants in Sauget, Illinois, and Hurth, Germany.