May 13, 2024 [Reuters]- U.S. oil refiner Citgo Petroleum on Thursday reported its first quarter net fell 56% to $410 million, from $937 million in the same period a year ago.
The Venezuela-owned company said its throughput rose to 830,000 barrels per day, the third highest in its history, up from 814,000 bpd in the year-ago quarter.
“They achieved these results with turnaround activities underway at two refineries while successfully restarting two offline units that they believe will further enhance their crude processing capabilities,” CEO Carlos Jorda said in a statement.
Citgo’s crude utilization rate, or how much oil its three plants were able to process compared with full capacity, was 95% last quarter despite the turnarounds, compared to 96% in the first quarter a year ago, the company said.
The Houston-based company ended the quarter with $4.5 billion in cash and borrowing power, up from $4 billion at the end of 2023. It plans to spend $1.1 billion this year on capital expenditures, turnarounds, and catalysts.
The seventh-largest U.S. refiner is in the midst of a Delaware court auction of shares in parent PDV Holding, whose only asset is Citgo. That auction could force a change in Citgo’s ownership.
The auction is intended to repay $21 billion in claims for debt defaults and expropriations submitted by Crystallex, Rusoro Mining, Gold Reserve, ConocoPhillips, Tidewater, and Koch Industries. Bids in the second-round of the court auction are due June 11.
Two large groups, including investors Elliott Investment Management and Centerview Partners, are circling the company and weighing bids in the June round. ConocoPhillips, the U.S. oil major that holds more than half the total claims in the court case, this month said it is closely monitoring the process.
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