Citgo records $25-million net loss in quarter, cites lower-margin environment
Citgo Petroleum Corp., Houston, had a net loss of $25 million for second-quarter 2024, down from net income of $410 million in this year’s first quarter.
The company attributed the loss to a “less favorable market environment,” but said it has completed major turnaround and maintenance activities.
"Our second quarter earnings reflect a lower margin environment and the impact of extensive turnaround and maintenance activities at our refineries," said Citgo president and chief executive officer Carlos Jordá.
"That said, these activities have improved optimization across our refinery system, as we work to ensure a steady supply of crude and feedstocks while effectively managing product placement. As we look forward, we have improved our reliability and crude utilization rates, gasoline sales volumes are strong, and we are proceeding with our capital spending plans."
Operations
Total throughput for second-quarter 2024 decline to 720,000 b/d due to the turnaround and maintenance activities, of which crude runs were 678,000 b/d with an overall average crude utilization rate of 84%. In comparison, total refinery throughput for first-quarter 2024 was 830,000 b/d, of which crude runs were 769,000 b/d with an average crude utilization rate of 95%.
The Lake Charles refinery commissioned a vacuum tower bottom (VTB) import line, with the goal of creating new synergies across Citgo's refinery system by enabling the Lemont and Corpus Christi refineries to optimize their heavy crude processing and the Lake Charles refinery to improve utilization of certain units (OGJ Online, May 4, 2024). Additionally, the Lake Charles refinery restored most of its heavy crude processing capability and achieved a post turnaround crude unit rate above 485,000 b/d, the company said (OGJ Online, May 11, 2023).
The Corpus Christi refinery underwent a major turnaround at its West Plant, keeping the crude unit online throughout, and continued to operate the East Plant as a result of the VTB import line project.
Financials
Citgo funded $228 million in turnaround and catalyst expenditures and an additional $128 million in direct capital expenditures. Projected turnaround, catalyst and capital expenditures for full year 2024 total about $1.0 billion.