CITGO Petroleum Corporation have reported its 2023 second quarter financial and operational results.
Relatively strong refining margins and product yields contributed to second quarter net income of $380 million and EBITDA of $642 million, compared with net income of $937 million and EBITDA of $1.4 billion for the first quarter of 2023.
“We delivered another strong quarter both operationally and financially,” said CITGO president and CEO Carlos Jordá. “We completed several planned turnarounds and unplanned maintenance projects while funding capital expenditures and dividends to CITGO Holding. We are starting the third quarter in a healthy position given our strong liquidity and operational performance.”
Second Quarter Highlights:
Strategic and Operational
- Throughput – Total throughput for the second quarter was 804,000 bpd, of which crude runs were 761,000 bpd, with a total crude utilization rate of 94 percent. This compares to total throughput of 814,000 bpd, of which crude runs were 772,000 bpd with crude utilization rate of 96 percent in the first quarter of 2023. Reliability was also strong, with only 1.51 equivalent down time days across the CITGO refining system for the first half of the year, and several unit processing records set at the Lake Charles Refinery in the second quarter. During the quarter we advanced the cleaning of the Corpus Christi crude preheat train, performing such work in 16 days against an 18-day schedule, which impacted our crude utilization and margin capture rates. The work was initially scheduled for September of this year but advancing it will allow us to optimize our overall refinery utilization for the rest of the year.
- Operational Excellence – Completed the quarter with no Tier-1 process safety incidents, further reinforcing the strong focus on maintaining superior operational safety standards. Additionally, both Terminals and Pipelines (TPL) and Lubricants delivered strong safety and environmental performance, and the Lemont Refinery successfully completed its spring turnaround with more than 400,000 manhours without a recordable injury. TPL was also recognized with the International Liquids Terminal Association’s (ILTA) Safety Excellence Award for 2022 safety performance. While working through a month-long third-party pipeline outage, the Lake Charles Refinery processed 460,000 bpd of crude in the second quarter, increasing its crude utilization rate for the quarter to 99 percent. The Lemont Refinery also achieved a crude capacity utilization of 99 percent during the quarter and set a new crude processing record of 184,000 bpd.
- Commercial Excellence – Domestic branded and unbranded sales volume improved 3 percent to 425,000 bpd compared with the first quarter, and export volume declined slightly from 141,000 bpd to 138,000 bpd. Additionally, the Light Oils Marketing and Lubricants business units delivered strong margins for the quarter.
Financial
- During the second quarter, CITGO invested $120 million in turnaround and catalysts and an additional $61 million that primarily consisted of direct capital expenditures.
- CITGO Petroleum made total dividend payments to CITGO Holding of $192 million in the second quarter, including $63 million relating to CITGO Holding’s first quarter excess cash flow (ECF) offer to the holders of its senior secured notes due 2024.
- Under the terms of the CITGO Holding notes, the company made a $473 million ECF offer to the noteholders during the second quarter, and CITGO Holding purchased $63 million aggregate principal amount of notes in June 2023. After giving effect to this ECF offer, approximately $1.286 billion in aggregate principal amount of the CITGO Holding notes remain outstanding.
- CITGO Holding expects to make an ECF offer of $192 million relating to the second quarter to its noteholders.
For more information visit www.citgo.com
