(Citgo, 15.Nov.2021) — Citgo Petroleum Corporation reported its third quarter 2021 financial results, including a net loss of $4mn, compared to net income of $3mn for the second quarter. Marking the company’s second consecutive quarter of positive EBITDA1 after three straight quarters of negative EBITDA, EBITDA in the third quarter was $194mn, compared to EBITDA of $214mn in the second quarter of 2021. The $20mn decline in quarter over quarter EBITDA was primarily due to the effects of a number of corporate events that are discussed below, as well as compressed margins in the Supply, Marketing and Lubes businesses, which combined to more than offset a $55mn improvement in refining EBITDA compared to the second quarter.

The decline in EBITDA compared to the second quarter was due in part to the reinstatement of Citgo Petroleum employee salaries and benefits in the third quarter and receipt of a few one-time benefits in the second quarter that were not repeated in the third quarter. These benefits included insurance recoveries, net of expense, related to Winter Storm Uri damages, returned insurance premiums from our property and business interruption providers and dividends from OIL Insurance, the energy industry mutual insurer in which we have an interest as a policy holder. Citgo’s Supply, Marketing and Lubes businesses experienced a $20mn decline in quarter over quarter EBITDA, primarily due to compressed margins.

“Better crack spreads, supported by continued demand recovery and low inventory levels, were a welcomed development in the third quarter despite the headwinds of some of our unplanned outages and higher natural gas prices,” said Citgo President and CEO Carlos Jordá.

The overall refining backdrop was improved quarter over quarter, resulting in estimated total refining EBITDA of $198mn, compared to $143mn for the second quarter of 2021. However, unplanned outages at both the Corpus Christi and Lake Charles refineries and planned turnaround work at Lake Charles and Lemont led to a reduced combined throughput rate of 85% for the third quarter, compared to 87% for the previous quarter.

“While our quarterly results were challenged despite an improved market environment, we are working to address operational issues as we move into the fourth quarter. Increased mobility is creating more demand for our products, and we will continue working hard to improve our operations so that we are well-positioned to fully capture available margins,” continued Jordá. “I’m confident we are taking the necessary steps to finish 2021 strong.”

Third Quarter Highlights:

Strategic and Operational

  • Exports – Third quarter refined product exports averaged 136,000 barrels-per-day (bpd), up slightly from the second quarter of 2021. Stronger export sales are forecasted through the end of the year as Latin America continues to reopen. U.S. Gulf Coast export barrels are forecasted to be more competitive in Q4 as well.
  • Refinery Throughput – Third quarter total refinery throughput of 698,000 bpd, including 44,000 bpd of intermediate feedstocks, was down compared with the previous quarter. As a result, overall crude utilization of 85% was slightly lower than the second quarter 2021 utilization rate of 87%.
  • Operational Excellence – Through September, the company exceeded its targets for safety and environmental performance and was recently recognized by the International Liquids Terminal Association for outstanding occupational safety performance in 2020. Additionally, both the Lake Charles and Lemont refineries set fuel production records during the third quarter while successfully managing turnaround activities.


  • Capital Spending –– After shifting the timing of the Corpus Christi turnaround to the first quarter of 2022, Citgo is now projecting a total of $425mn in capital, turnaround, and catalyst spending for 2021. September 2021 YTD capital, turnaround and catalyst spending was approximately $222mn.
  • Tax Refund – CITGO received approximately $556mn, including interest, from the Internal Revenue Service during the quarter, which constitutes its share of U.S. income tax refund payments under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
  • Accounts Receivable (AR) Facility – On 30 September 2021, Citgo amended its AR facility agreement to increase availability under its existing two-year AR securitization facility from $250mn to $500mn.

Notable Personnel Changes:

  • Luis Giusti was elected Chairman of the Citgo Petroleum Corporation Board of Directors.
  • Carlos Jordá was appointed to the Board of Directors of both Citgo Holding, Inc. and Citgo Petroleum Corporation, while continuing to serve as Citgo Petroleum Corporation President and CEO.
  • Jack Lynch was appointed to the Board of Directors of Citgo Petroleum Corporation and also as the Board Secretary of Citgo Petroleum Corporation and its parent companies PDV Holding, Inc. and Citgo Holding, Inc. Mr. Lynch continues as Vice President Legal and Government Affairs of Citgo Petroleum Corporation.
  • Sam Wilhelm, President of PDV Holding, Inc., was appointed to the Citgo Petroleum Corporation Board of Directors.
  • Shane Moser was named Vice President of Health, Safety & Environment (HSE) of Citgo Petroleum Corporation, reporting directly to Chief Operating Officer Edgar Rincón.
  • Gina Coon, Corporate Treasurer of Citgo Petroleum Corporation, has elected to retire at the end of November 2021. A formal search is underway for a successor.

Industry Overview:

With COVID restrictions easing in the third quarter, increased mobility resulted in improved demand for gasoline, distillate and jet fuel compared with earlier in 2021. For all three products combined, U.S. demand was down 2.4% compared to the third quarter of 2019.

Changes in key drivers during the quarter include the following:

  • U.S. oil demand increased to 20.15 MMBPD (million barrels-per-day) in 3Q 2021, up from 18.4 MMBPD in 1Q 2021, with notable increase in mobility and economic activity. Oil demand is expected to surpass 2019 levels in the second half of 2022.
  • U.S. gasoline demand continued to improve, with 3Q 2021 averaging only 1.7% below 3Q 2019 and exceeding expectations. While demand has remained strong into the fourth quarter, the winter months bring risk of COVID resurgence and thus mobility.
  • U.S. distillate demand exceeded 2019 levels for the past six months, with 3Q 2021 demand approximately 3% above that of 3Q 2019. Diesel and jet exports continue to lag 2019 levels. 
  • U.S. jet fuel demand continues to improve relative to 2Q 2021 on a slow and steady path, with 3Q 2021 approximately 18% under 3Q 2019. 
  • U.S. refinery utilization averaged 90% for 3Q 2021, approximately 3.5% below 2019 and entering the bottom of the five-year range.