(Citgo, 22.Jul.2020) — PDV Holding, Inc., the indirect sole stockholder of Citgo Petroleum Corporation, issued its first-ever annual report detailing financial and operational performance in calendar year 2019. Report highlights included successful debt refinancing, credit ratings upgrades, increased refining capacity and strengthened corporate governance measures.
The report was released in concert with delivery to the PDVSA Ad Hoc board, representing PDV Holding’s sole shareholder, PDVSA. A copy of the report may be accessed here.
“2019 was a vitally important year in the history of PDV Holding and Citgo Petroleum,” said PDV Holding Board Chairwoman Dr. Luisa Palacios. We are enormously proud of the strides made in little more than a year, and this report represents the board’s ongoing commitment to transparency and accountability.” Palacios underscored the board’s top priorities: “We will continue to focus on three fundamental objectives: strengthening the operational and financial stability of the Citgo entities; protecting their assets; and enhancing their corporate governance.”
The report’s highlights include:
— Successful Refinancing. The board took actions permitting the refinance of approximately 70% of the consolidated debt of Citgo Holding and Citgo Petroleum Corporation, thereby reducing the financial cost to Citgo Holding by $220 million over the next five years.
— Credit Rating Upgrades. Ratings agencies Fitch and Moody’s upgraded Citgo Petroleum’s credit ratings to B (Fitch) and B3 (Moody’s). These ratings have enabled Citgo Petroleum to access the U.S. credit markets and provide support for its positions in those markets.
— Enhanced Corporate Governance. The company continues to expand and institutionalize measures to strengthen corporate governance with the appointment of a new Chief Compliance and Ethics officer with enhanced responsibilities, as well as updating its company-wide Code of Business Ethics.
— Increased Refining Capacity. The company increased total refining capacity by 20,000 BPD to 769,000 BPD, only the second such increase in the company’s last 20 years.
— Strong Environmental & Safety Performance. 2019 marked one of the best years in Environmental and Process Safety indicators over the last five years, earning the company multiple national awards.
— Prioritized Capital Investments and Maintenance. The company redirected spending on capital investments and maintenance, which allowed the refineries to complete 90% of all planned turnarounds in 14 months since the new board was appointed.