Citgo Petroleum's profit plummeted to $305 MM in 2024
- Crude utilization was 93% in 2024, in line with 2023 numbers
- Year-end liquidity declined to $3.8 B from $4 B in 2023
- Trading expanded to South Africa, Japan and China
Venezuela-owned U.S. refiner Citgo Petroleum reported on Thursday a $305-MM net income last year, below the $2-B profit of 2023, following a $146-MM loss in the fourth quarter, the company said in a release.
Ownership of the U.S. seventh-largest refiner could change this year if a successful bid for the shares of its parent company is selected through a court-organized auction in Delaware set to compensate 18 creditors for debt defaults and expropriations in Venezuela.
A "deteriorating pricing environment" combined with lower volumes of oil processed earlier in the year led to lower profitability in 2024. In the fourth quarter, weak refining margins contributed to the loss.
The refiner's total throughput last year was 811,000 bpd, of which crude runs were 753,000 bpd for a utilization rate of 93%. The numbers were in line with the previous year's results.
The 463,000-bpd Lake Charles refinery in Louisiana reached its third highest quarterly crude processing rate with 98% in the fourth quarter, while the 167,000-bpd Corpus Christi refinery in Texas increased crude utilization to 96% in the last quarter after completing turnaround and maintenance activities.
The 177,000-bpd Lemont refinery in Illinois, which mostly processes Canadian crude, registered a crude utilization of 98% in the last quarter.
"We finished the year with strong reliability and our highest quarterly overall average crude utilization rate and throughput for the year, but it was not enough to offset the impact of low fourth quarter refining margins," Citgo's chief executive Carlos Jordá, said in the release.
"We battled a challenging market all year, while we continued to execute on our strategic initiatives," he added.
Citgo's marketing sales volume for the year was 421,000 bpd. The firm's trading activities expanded to new markets, including South Africa, Japan and China, and it registered stronger sales of jet fuel to airlines.
Year-end liquidity, a key metric investors are looking at to consider bids in the court-organized auction, declined to $3.8 B from $4 B at the end of 2023, including a securitization facility and secured notes.
The company redeemed all of its $1.125 B outstanding senior secured notes due June 2025 with cash on hand.
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