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Citgo reports $82 million loss for Q1 despite weak margins

Citgo Petroleum, a refiner owned by Venezuela, reported a $82 million loss for the first quarter of this year. This compares to a $410 million profit in the same period the previous year. The company based in Houston said that the result was due to the weak margins in refining.

Citgo, which is being pursued for its assets by Venezuelan expropriated firms and bondholders who defaulted through an auction organized by a U.S. Court, has registered red numbers once again in its most recent period. This follows a loss of $146 million in the fourth quarter.

In a press release, CEO Carlos Jorda said that despite the low prices, the refinery achieved a quarterly crude processing rate record.

The average throughput of the seventh-largest U.S. oil refining company in the first quarter of 2008 was 833,000 barrels of crude oil per day (bpd), with 768,000 bpd of crude running, for a crude utilization of 95%. This is lower than the 98% recorded in the previous quarter.

The refinery in Lake Charles, Louisiana saw its utilization rise to 99%. However, the refinery in Corpus Christi (Texas) fell to 83%, down from 96% the previous quarter, as planned maintenance was carried out.

Profits plummeted by

Last year, $305 Million was spent

The auction in Delaware is expected to bring in less than the $2 billion profit that was anticipated for 2023. This has caused some investors and creditors to change their expectations about the amount they can expect.

After a failed bid round last year the court has launched a second round of bidding by selecting a $3.7 billion

Starting bid

Last month. After rival bids have been received, and the winner has been selected in the coming months, a final sale hearing will be held for July.

Citgo reported that the volume of marketing sales in the first quarter fell slightly, to 423,000 Bpd.

Citgo reported $35 million in equipment and turnaround expenses between January and the end of March. The company's liquidity at quarter-end, an important indicator for the auction, fell to $2.1 billion compared to $3.8 billion by the end of the last quarter. Reporting by Marianna Pararaga, Editing by Chris Reese & Marguerita Choy

(source: Reuters)