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
BP CEO: Final Permian Processing Facility to Come Online by Mid-year
2024-05-14 - BPX Energy, BP’s Houston-based subsidiary, plans to bring on its fourth and last Permian Basin processing facility mid-year 2024, CEO Murray Auchincloss said.
Petrobras Not in a Race with Guyana to Boost Production, CEO Says
2024-05-14 - While Brazil and Guyana aren’t necessarily competing to see which country can produce more oil, Petrobras’ CEO Jean Paul Prates jokingly said Brazil was winning, while adding that Bolivia’s falling production was an opportunity for Argentina.
Pembina Pipeline to Renew Share Repurchase Program
2024-05-14 - Pembina Pipeline has approval from the Toronto Stock Exchange to purchase up to 5% of its outstanding common shares.
US Hits China with Huge Tariff Hikes on Solar Cells, EVs, Batteries
2024-05-14 - The directive quadruples the tariff rate on electric vehicles from 25% to 100%, and the tariff rate for solar cells doubles to 50%.
ProPetro Adds Exxon Designee Volkov to Board
2024-05-14 - Alex Volkov is currently the transition executive tasked with planning the integration of Pioneer Natural Resources and Exxon Mobil.