(Citgo, 10.Nov.2022) — Citgo Petroleum Corporation reported 2022 third quarter net income of $477mn and EBITDA of $804mn, compared to net income of $1.29bn and EBITDA of $1.86bn in the second quarter of 2022.
Highlights:
- Reported third quarter net income of $477mn and EBITDA 1 of $804mn
- Continued strong health, safety and environmental performance
- Successful and safe turnaround execution and start-up at the Lemont Refinery
- Record crude utilization of 104% at the Lake Charles Refinery
“Refinery cracks (3/2/1) continued to be strong, primarily driven by historically strong distillate cracks, but dropped quarter over quarter from $40.61/Bbl. (Ex-RVO) to $26.63/Bbl. for the USGC, and from $38.92/bbl. to $31.20/Bbl. in Chicago,” said Citgo President and CEO Carlos Jordá. “Our refineries continued operating safely and reliably, with the Lake Charles Refinery achieving a record crude utilization rate, and I am especially proud that the Lemont Refinery completed a major turnaround and startup with no safety issues. Outside of refining, our branded, unbranded, and petrochemical businesses also delivered strong performances this quarter. Our strong earnings allowed us to pay a dividend that was used to fund the repayment of $483mn of debt at Citgo Holding.”
Other 3Q 2022 Highlights:
Strategic and Operational
- Throughput – Total net throughput for the third quarter of 2022 was 780,000 barrels-per-day (bpd), of which crude runs were 685,000 bpd and intermediate feedstocks were 95,000 bpd, resulting in an overall crude utilization of 89%. While total throughput and utilization were down relative to the second quarter due to the Lemont Refinery turnaround, the Lake Charles Refinery realized a record crude utilization rate of 104% during the quarter.
- Operational Excellence – Health, Safety and Environmental (HSE) performance was excellent during the quarter, and the Company is on pace for record-setting occupational safety and environmental performance, with year-over-year improvement in process safety performance. The Lemont Refinery successfully executed a major turnaround and startup with no OSHA Recordables while outperforming the industry average on cost and schedule. The Lemont Refinery is also on pace for the best reliability performance of the last five years.
- Commercial Excellence – Expansion into select South American markets continued, with export sales volume increasing to 196,000 bpd from 195,000 bpd in the previous quarter, and up 45% relative to the third quarter of 2021. Domestically, branded gasoline margins were strong, the Company set new records in unbranded gasoline sales, and the petrochemicals business also delivered strong performance during the quarter.
Financial
- Citgo invested $123mn in turnarounds and catalysts, related primarily to the Lemont Refinery turnaround, and invested another $58mn in capital projects during the quarter.
- Citgo paid dividends of $483 mn to Citgo Holding, Inc. (CHI) to fund the full repayment of CHI’s Senior Secured Term Loan B due 2023.
- CITGO extended the maturity date of its existing $500mn accounts receivable securitization facility to September 2024.
Notable Personnel Change:
In early October, Kresha Sivinski was named Vice President of Human Resources and Support Services, bringing 35 years of Citgo operational experience, and providing a valuable perspective to the Human Resources function.
| 1 | EBITDA/Adjusted EBITDA are non-GAAP financial measures. |
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