#USA #Houston #Q4 2024 #CITGO Petroleum #refining losses

CITGO Reports Mixed Financial Results for Fourth Quarter 2024

CITGO Petroleum Corporation has released its financial and operational results for the fourth quarter and full year of 2024. The numbers reveal a challenging landscape for the company, particularly in the fourth quarter, where it faced a net loss amounting to $146 million. This financial downturn is attributed primarily to weak refining margins impacting earnings despite the company recording a positive operational throughput.

In the fourth quarter, CITGO recorded an EBITDA of $2 million and an Adjusted EBITDA of $(15) million. Comparatively, for the previous quarter, the company reported a net income of $66 million, highlighting a significant performance decline due to market pressures. For the entire year of 2024, CITGO's net income stood at $305 million with an EBITDA of $1.2 billion and Adjusted EBITDA of $1.1 billion, contrasted with 2023, where net income reached $2 billion and higher EBITDA figures were achieved.

Carlos Jordá, the President and CEO of CITGO, stated, “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.” Despite the financial setbacks, CITGO has managed to execute strategic initiatives that align with its commitment to operational and commercial excellence.

Despite declining margins, CITGO demonstrated notable operational performance in terms of throughput. For the fourth quarter, the company achieved a throughput total of 887,000 barrels-per-day (bpd), with crude processing recorded at 790,000 bpd and an impressive overall average crude utilization rate of 98%. This operational efficiency was echoed throughout the year with an annual throughput of 811,000 bpd and an overall average crude utilization rate of 93%.

Operational Highlights

Throughout 2024, CITGO's refining facilities showed promising records. The Lake Charles Refinery saw a strong fourth quarter, with substantial crude processing levels contributing to new records in jet fuel and ULSD production. Additionally, the Lemont Refinery once again excelled, finishing the year with zero employee recordable injuries, a key performance indicator emphasizing safety alongside performance.

The Corpus Christi Refinery, after successfully completing a comprehensive turnaround, reached a 96% average crude utilization rate for the quarter. Meanwhile, the company’s Lubricants and Terminals and Pipeline units reported zero recordable injuries and incidents throughout the year, demonstrating CITGO's commitment to safety and environmental responsibility.

In terms of commercial success, CITGO recorded competitive marketing performance with annual sales volumes reaching 421,000 bpd. The company successfully increased its brand recognition, achieving the best brand-to-debrand ratio in over two decades. Membership in the Club CITGO loyalty program surged, highlighting increased customer engagement and market reach.

Financial Highlights

CITGO's financial management during the year also reflected its resilience. Turnaround and catalyst expenditures for the fourth quarter totaled $60 million, along with $110 million in direct capital expenditures, culminating in a total of approximately $933 million for the full-year capital investments. At year-end, the company reported total liquidity of $3.8 billion, indicating a solid balance sheet position.

In conclusion, while CITGO faced significant challenges in the fourth quarter of 2024 driven by unfavorable refining margins, its commitment to operational excellence allowed it to maintain strong throughput levels and build operational records across its facilities. Moving forward, CITGO aims to leverage its robust market presence and operational capabilities to navigate the evolving landscape of the petroleum industry. Through strategic initiatives and continued commitment to safety, CITGO looks to stabilize its financial performance and continue its growth trajectory in the face of market fluctuations.