CITGO Reports Third Quarter 2024 Results
PR Newswire
HOUSTON, Nov. 14, 2024
-- Net income of $66 million, EBITDA1 of $281 million and Adjusted EBITDA1
of $290 million
-- Total liquidity at quarter-end of $3.6 billion, including full
availability under CITGO's $500 million accounts receivable
securitization facility
-- Turnaround and maintenance activities successfully executed
-- Total throughput of 811,000 barrels-per-day (bpd) and overall average
crude utilization rate of 96%
HOUSTON, Nov. 14, 2024 /PRNewswire/ -- CITGO Petroleum Corporation
("CITGO" or "CITGO Petroleum") today reported its 2024 third quarter
financial and operational results. High throughput volume contributed to
a third quarter net income of $66 million, EBITDA of $281 million, and
Adjusted EBITDA of $290 million compared with a net loss of $25 million,
EBITDA of $162 million and Adjusted EBITDA of $149 million for the
second quarter of 2024.
"After successfully completing our planned turnaround activities this
year, we were able to capture available margins in a challenging pricing
environment with strong reliability and higher throughput," said CITGO
President and CEO Carlos Jordá. "We achieved an overall average
crude utilization rate of 96% and set several production records in the
third quarter, while safely adjusting operations in response to an
active hurricane season."
Operational Highlights
Operational Excellence -- Strong refinery operations in the third
quarter followed the successful execution of planned turnarounds and
maintenance in the second quarter. Process Safety performance through
the third quarter is on track for a record setting year, and
Occupational Safety performance remains better than the latest industry
average. Other third quarter highlights include:
-- Total throughput for the third quarter increased to 811,000 bpd, of which
crude runs were 774,000 bpd with an overall average crude utilization
rate of 96%. In comparison, total refinery throughput for the second
quarter of 2024 was 720,000 bpd due to turnaround and maintenance
activities, of which crude runs were 678,000 bpd with an overall average
crude utilization rate of 84%.
-- The Lake Charles Refinery reached an average crude utilization rate of
98%, achieving monthly crude processing records that contributed to the
refinery's third best quarter for crude processing, while the refinery
set a new distillate production record and continued progressing on the
marine export expansion project.
-- The Lemont Refinery reached an average crude utilization rate of 98% and
completed the third quarter with no OSHA Recordable events and no process
safety events, while setting jet fuel production records.
-- Strong occupational safety and environmental performance continued for
the Lubricants and Terminals and Pipeline $(TPL)$ business units with no
OSHA Recordable events, no Process Safety events and no environmental
incidents during the quarter.
-- Municipal fire departments and community-based mutual aid resources
joined CITGO first response staff for the CITGO Corporate Foam and Tank
Fire School in Corpus Christi, Texas, participating in PFAS-free foam
testing and receiving training on specialized fire tactics.
Commercial Excellence -- Supply, Marketing and TPL delivered solid
results for the third quarter. Total third quarter Marketing sales
volume was 428,000 bpd, up slightly from the second quarter, with 73 new
branded sites and a new monthly record for unbranded sales. The new East
Chicago loading rack continues to ramp up, leading to record throughput,
with the Sour Lake pipeline setting new monthly throughput records and
the Trading organization continuing to expand into new international
markets, including delivering products to Japan and China for the first
time.
(____________________________)
(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. For additional
information, please see the information under "General Information -- Non-GAAP
Financial Measures" on page 3 of this press release and the reconciliation on
page 4 of this press release.
Financial Highlights
-- Turnaround and catalyst expenditures for the quarter totaled $115 million,
with an additional $92 million in direct capital expenditures incurred
during the quarter. Projected turnaround, catalyst and capital
expenditures for full-year 2024 total approximately $970 million.
-- Total liquidity at quarter-end was $3.6 billion, including full
availability under CITGO's $500 million accounts receivable
securitization facility.
About CITGO
CITGO owns and operates three large-scale, highly complex petroleum
refineries with a total rated crude oil refining capacity of
approximately 807,000 bpd, located in Lake Charles, La., Corpus Christi,
Texas and Lemont, Ill. Our refining operations are supported by an
extensive distribution network, which provides reliable access to our
refined product end-markets. We own 34 active refined product terminals
with a total storage capacity of 18.1 million barrels and have equity
ownership of an additional 3.5 million barrels of refined product
storage capacity through our joint ownership of an additional 8
terminals, spread across 22 states. In addition, we own or have an
equity interest in four additional terminals, consisting of
approximately 1 million barrels of refined storage capacity, which are
currently inactive or only utilized to store feedstocks used in refining
operations. We also have access to approximately150 active third-party
and related-party terminals through exchange, terminalling and similar
arrangements. Our retail network consists of more than 4,000
independently owned and operated CITGO-branded retail outlets located
east of the Rocky Mountains. We and our predecessors have had a
recognized brand presence in the U.S. for more than 100 years.
ADDITIONAL INFORMATION
General:
CITGO publishes financial and other information on its website,
including reports of quarterly and annual results of operations. While
CITGO's historical financial information is presented in accordance with
U.S. generally accepted accounting principles ("GAAP"), CITGO is not an
SEC reporting company and does not report all information required of
SEC reporting companies. In addition, CITGO publishes certain non-GAAP
financial information, including EBITDA and Adjusted EBITDA, as
discussed below.
Forward-Looking Statements:
This press release contains "forward-looking statements" regarding
financial and operational matters relating to the CITGO business. These
forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties, many of which are beyond CITGO's
control and could result in expectations not being realized or could
otherwise materially and adversely affect CITGO's business, financial
condition, results of operations and cash flows. This press release may
also contain estimates and projections regarding market and industry
data that were obtained from internal company estimates, as well as
third-party sources believed to be generally reliable. However, market
data is subject to change and cannot always be verified with certainty
due to limits on the availability and reliability of raw data and other
limitations and uncertainties inherent in any statistical survey,
interpretation or presentation of market data and management's estimates
and projections. The forward-looking statements contained in this press
release are made only as of the date of this press release. For
additional information, please see CITGO's most recent annual report and
other reports to CITGO noteholders, including the information set forth
under the caption "Risk Factors." CITGO disclaims any duty to update any
such forward-looking statements.
Operational Metrics and Non-GAAP Financial Measures:
This press release also contains operational metrics and non-GAAP
financial information, including EBITDA, Adjusted EBITDA and Refinery
EBITDA Estimates, that have not been audited and are based on
management's estimates, which may be difficult to verify. These non-GAAP
financial measures are presented in addition to and should not be viewed
as a substitute for or superior to, measures of financial performance
prepared in accordance with GAAP. In addition, CITGO's non-GAAP
financial measures may differ from non-GAAP measures used by other
companies in our industry. We believe these non-GAAP financial measures,
when presented in conjunction with comparable GAAP measures, provide
useful supplemental information regarding underlying trends in the
Company's operating performance by excluding items that may not be
indicative of the Company's core operating performance. These non-GAAP
financial measures should not be considered a substitute for financial
information presented in accordance with GAAP. Please see the
reconciliation of EBITDA and Adjusted EBITDA to the most directly
comparable GAAP measure set forth on page [4] of this press release, as
well as the reconciliation of Refinery EBITDA Estimates to CITGO's
consolidated EBITDA set forth on page [5] of this press release.
Reconciliation of Net Income to EBITDA
(unaudited, in millions of U.S. dollars)
Three Months Ended Nine Months Ended
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September June 30, September September
30, 2024 2024 30, 2024 30, 2023
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