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Citgo quarterly net falls 81% on plant interruptions, lower margins

Venezuelaowned oil refiner Citgo Petroleum on Thursday reported fourth quarter net revenue fell 81% to $154 million, from $806 million a year back, on plant blackouts and weaker margins.

The company, which runs 3 U.S. refineries, reported full year 2023 revenue was $2 billion, down from the $2.8 billion a year ago which was the largest in its history.

Its unrefined usage rate, or just how much oil its plants were able to process compared with full capacity, slipped to 89% last quarter on upkeep blackouts, from 95% in the 3rd quarter, the company said.

Strong need, favorable market conditions and solid industrial and operational efficiency contributed to our second best yearly monetary efficiency in 2023, Citgo CEO Carlos Jordá stated of full-year results in a statement.

The business faces a Delaware court-organized auction of shares in moms and dad PDV Holding, whose only possession is Citgo, to repay billions of dollars in claims against Venezuela. The auction might force a modification in Citgo's ownership.

The court has allowed creditor claims for expropriations in Venezuela and defaulted debt to be applied to anticipated profits from a proposed auction of shares in a parent of the South American country's foreign crown jewel.

Round of quotes drew indications of interest from 12 private investment funds and companies. A second bidding round is anticipated this year.

Total throughput for its 3 refineries in Texas, Louisiana and Illinois fell 6% to 821,000 barrels daily in the last quarter, and each of the plants posted lower year-over-year revenue, the business stated.

Hardest hit was its Corpus Christi, Texas, refinery, which published a $4 million operating loss, compared to a $234. million operating earnings in the same duration a year earlier.

Quarterly adjusted earnings for the business was $411. million, below $1.2 billion a year back. Its cash and. obtaining power at year-end was $4 billion, up from $2.6 billion. a year earlier, the business stated.

(source: Reuters)