#United States #Houston #financial results #CITGO Petroleum #refining performance

CITGO Petroleum Q1 2025 Financial Overview

CITGO Petroleum Corporation recently announced its financial results for the first quarter of 2025, painting a detailed picture of its operational performance amidst challenging market conditions. The report highlighted a net loss of $82 million, alongside earnings before interest, taxes, depreciation, and amortization (EBITDA) of $88 million. This marks a significant improvement compared to a net loss of $146 million and an EBITDA of just $2 million in the preceding quarter, although it remains short of expectations.

Key Financial Performance

The quarter brought about quantifiable metrics, where the total throughput reached an impressive 833,000 barrels per day (bpd). Notably, crude processing stood at 768,000 bpd, with a commendable crude utilization rate of 95%. CITGO's CEO, Carlos Jordá, expressed optimism, stating, "We delivered solid operational performance during the first quarter, with strong refinery reliability and an improved gross refining margin relative to the previous quarter."

Despite the continued pressure on refining margins, CITGO continued its emphasis on operational efficiency. At the Lake Charles Refinery, a historic high was achieved with a crude processing rate of 460,000 bpd, complemented by a utilization rate of 99%. Furthermore, operations at the Lemont Refinery maintained a robust crude utilization rate of 96%, underscoring CITGO's commitment to operational excellence even in tough market conditions.

Operational Highlights

CITGO's performance within its refining segment demonstrated resilience. The Lake Charles facility not only reached its highest quarterly processing rates but also set records in distillate production while successfully completing necessary maintenance activities. The Lemont facility’s achievements included recognition with the 2024 Safety Achievement Award from the American Fuel and Petrochemical Manufacturers Association.

Meanwhile, the Corpus Christi refinery operated well above its five-year average, achieving a crude utilization rate of 83% and maintaining operational integrity through planned maintenance operations without any safety incidents reported.

The company also reported a solid commercial performance, with Marketing sales volumes maintaining a steady flow of 423,000 bpd. The integration of the CITGO Mobile Pay with the Club CITGO app has maximized customer engagement, culminating in 5.6 million loyalty gallons sold in March alone - a record. Additionally, the Sour Lake Pipeline established a monthly throughput record, indicating strong infrastructural capabilities.

Financial Sustainability

Financial sustainability remains a priority, with a quarter-end liquidity position of $2.1 billion bolstered by actions taken to redeem $1.125 billion in senior secured notes well ahead of their due date. Despite the headwinds in refining margins, the strategic decisions made are intended to position CITGO for sustained operational success moving forward.

CITGO continues to navigate the complexities of the petroleum industry by focusing on operational efficiencies, safety achievements, and commercial excellence. As the company progresses through 2025, it aims to enhance its refining margins and shore up its financial health, setting up for potential recovery in a volatile market environment.

With considerable challenges still ahead, CITGO’s commitment to operational performance indicates a proactive approach, suggesting that they are preparing to tackle uncertainties while continuing to serve their markets effectively.