Oil refiner Citgo Petroleum on Nov. 10 reported third quarter earnings of $477 million on strong margins and higher throughput at its three U.S. oil processing plants.
Results for the Venezuelan-owned company and other U.S. refiners have touch records this year as prices for motor fuels climbed sharply on the U.S. economic recovery and on global shortages caused by Russia's invasion of Ukraine. That demand is expected to keep profits flowing.
Citgo posted a pre-tax profit of $804 million for the quarter ended Sept. 30, down from the record $1.86 billion in the second quarter this year. Pre-tax profits for the first nine months this year were $3.18 billion.
The latest period reflected strong diesel demand at the seventh-largest U.S. refinery operator. However, overall profit margins and earnings fell from the prior quarter as processing rates slipped to 89% from the second quarter's 101%, said CEO Carlos Jorda in a statement.
Its three refineries processed 780,000 bbl/d last quarter, and exported 196,000 bbl/d of refined products, up about 45% from a year ago.
The profits allowed Citgo last quarter to pay $483 million in dividends to parent Citgo Holding to repay a term loan. Companies that hold debt in Citgo's parent companies are looking to seize its shares to recover debts.
A Delaware District court judge last month approved a sales process to auction shares in PDV Holding, the indirect sole stockholder of Citgo. If held, the auction would pay Canadian miner Crystallex $970 million owed from an expropriation judgment on its Venezuelan assets.
Citgo is the crown jewel of Venezuela's overseas assets and has split from its Caracas-based ultimate parent, Venezuelan state-run oil firm Petroleos de Venezuela. But companies with unpaid debts from Venezuela have sought to have their judgments recognized by the same Delaware court.
Recommended Reading
Dividends Declared in the Week of Aug. 19
2024-08-23 - As second-quarter earnings wrap up, here is a selection of dividends declared in the energy industry.
Gulfport Energy to Offer $500MM Senior Notes Due 2029
2024-09-03 - Gulfport Energy Corp. also commenced a tender offer to purchase for cash its 8.0% senior notes due 2026.
Pembina Completes Partial Redemption of Series 19 Notes
2024-07-08 - The redemption is part of Pembina Pipeline’s $300 million (US$220.04 million) aggregate principal amount of senior unsecured medium-term series 19 notes due in 2026.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Bechtel Awarded $4.3B Contract for NextDecade’s Rio Grande Train 4
2024-08-06 - NextDecade’s Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.3 billion for the work under an engineering, procurement and construction contract.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.