Citgo Petroleum returned to profit in the second quarter
Venezuela-owned U.S. refiner Citgo Petroleum registered net income of $100 million in the second quarter vs. a $25 million loss in the same quarter last year, finishing the period with liquidity of $2.6 billion.
The Houston-based refiner, whose parent company PDV Holding is being auctioned by a U.S. court to pay creditors for past debt defaults and expropriations in Venezuela, had recorded losses in the two previous quarters amid weak margins before its second-quarter results.
Citgo's performance is being used as a key metric to estimate the parent's value as part of the auction, whose final hearing to choose a winner is scheduled for this month amid objections and complications in the 8-year court case.
Between April and June Citgo, which is the seventh-largest U.S. refiner, increased its total processing to an average of 858,000 barrels per day (bpd) from 833,000 bpd in the first quarter, registering a crude utilization rate of 101%.
"Reliable operations in a more supportive market environment" led to a stronger second quarter, the company said in a release.
In the second half of the year, Citgo plans to advance key projects, but it rescheduled some turnaround activities at its Lemont, Illinois and Lake Charles, Louisiana refineries to next year, it added.
As a consequence, projected turnaround, catalyst and capital expenditures for this year were reduced from approximately $960 million to some $696 million.
The refiner's quarter-end liquidity, which included full availability of a $500-million accounts receivable credit, was higher than the $2.1 billion registered in the first quarter, but below the $3.8 billion of the second quarter last year.
In April, Citgo retired $50 million of outstanding secured industrial revenue bonds with cash on hand, it said.
Citgo's marketing sales volume was 431,000 bpd in the quarter, up slightly from the previous period.
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