- Net income of $937 million and EBITDA1 of $1.4 billion, compared to net income of $806 million and EBITDA of $1.2 billion for the fourth quarter of 2022
- The Lake Charles Refinery increased its nameplate capacity by 38,000 barrels-per-day (bpd) to 463,000 bpd, bringing the total nameplate capacity of the CITGO refining system to 807,000 bpd
- Crude oil processing in the first quarter was 772,000 bpd, with crude capacity utilization of 96%, compared with 797,000 bpd and 104% crude capacity utilization in the fourth quarter of 2022
- The Lemont Refinery achieved record crude processing of 187,000 bpd in March, representing nearly 106% utilization of the total nameplate capacity
- Continued strong reliability across the CITGO refinery system, measured by only 0.71 days of equivalent downtime days during the first quarter
HOUSTON, May 10, 2023 /PRNewswire/ -- CITGO Petroleum Corporation today reported its 2023 first quarter financial and operational results.
Favorable refining margins and product yields combined with strong asset reliability contributed to first quarter net income of $937 million and EBITDA of $1.4 billion, compared with net income of $806 million and EBITDA of $1.2 billion for the fourth quarter of 2022.
"Outstanding financial and operational performance continued into the first quarter," said CITGO President and CEO Carlos Jordá, "while we successfully completed a large turnaround at our Lake Charles refinery. I particularly congratulate the Lake Charles Refinery team for increasing nameplate capacity with professional ingenuity and minimal capital investment, while we continued emphasizing operational and commercial excellence throughout the Company."
First Quarter Highlights:
Strategic and Operational
- Throughput – Total throughput for the first quarter was 814,000 bpd, of which crude runs were 772,000 bpd, with a total crude utilization rate of 96%. This compares to total throughput of 874,000 bpd, of which crude runs were 797,000 bpd with crude utilization rate of 104% in the fourth quarter of 2022. Reliability was also strong, with only 0.71 days of equivalent down time across the CITGO refining system, and several unit processing records at both the Lake Charles and Lemont Refineries. Additionally, the Lake Charles Refinery increased its nameplate crude refining capacity by 38,000 bpd, from 425,000 bpd to 463,000 bpd bringing the total nameplate capacity of the CITGO refining system to 807,000 bpd.
- · Operational Excellence – Health, Safety and Environmental (HSE) performance continued to be strong, with CITGO's occupational safety index remaining below the reported industry average. Additionally, CITGO was recognized with two safety awards for 2022 safety performance: AFPM awarded the Corpus Christi Refinery with its Safety Achievement Award and Union Pacific recognized the Company's rail transportation safety efforts with its Chemical Transportation Safety Pinnacle Award for the second year in a row.
- · Commercial Excellence – Continued diversifying crude trading and product trading counterparties with customers in Canada, Egypt, India, Argentina, Chile, Brazil, Mexico, Portugal, Spain, and Oman. Additionally, the Light Oils Marketing, Lubricants, and Terminals and Pipelines business units also delivered solid results for the first quarter.
Financial
- During the first quarter, CITGO invested $127 million in turnaround and catalysts and incurred an additional $53 million of capital expenditures.
- According to CITGO Holding debt covenants, the Company will make a $473 million excess cash offer on May 11, 2023 to the CITGO Holding bond holders. The final date for acceptance by the bond holders will be June 9, 2023.
About CITGO
We own and operate three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 807,000 bpd, located in Lake Charles, Louisiana, Corpus Christi, Texas and Lemont, Illinois. Our refining operations are supported by an extensive distribution network, which provides reliable access to our refined product end-markets. We own 30 active refined product terminals with a total storage capacity of 7.8 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 21 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 more than 150 active third-party and related-party terminals through exchange, terminalling and similar arrangements. Our retail network consists of approximately 4,200 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 over 100 years.
ADDITIONAL INFORMATION
General:
CITGO publishes financial and other information on its website, including reports of quarterly and annual results of operations and financial condition. 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, as discussed below.
Forward-Looking Statements:
This press release contains "forward-looking statements" regarding financial and operating items 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, that 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 complete 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 financial reports, including the information set forth under the caption "Risk Factors." CITGO disclaims any duty to update any forward-looking statements.
Operational Metrics and Non-GAAP Financial Measures:
This press release also contains operational metrics and non-GAAP financial information, including EBITDA and Adjusted EBITDA, that have not been audited and are based on management's estimates, which may be difficult to verify. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and 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 consolidated EBITDA set forth on page 5 of this press release.
Reconciliation of net income to Adjusted EBITDA |
|||||||
Three Months Ended |
Three Months Ended |
||||||
March 31, |
Dec 31, |
March 31, |
March 31, |
||||
2023 |
2022 |
2023 |
2022 |
||||
Net income |
$ 937 |
$ 806 |
$ 937 |
$ 245 |
|||
Excluding the impacts of: |
|||||||
Interest expense, net (2) |
6 |
55 |
6 |
57 |
|||
Income tax expense |
269 |
214 |
269 |
71 |
|||
Depreciation and amortization |
148 |
149 |
148 |
145 |
|||
EBITDA (3) |
$ 1,360 |
$ 1,224 |
$ 1,360 |
$ 518 |
|||
NISCO impairment |
- |
15 |
- |
- |
|||
LIFO Inventory permanent dip impact |
- |
(5) |
- |
- |
|||
Adjusted EBITDA |
$ 1,360 |
$ 1,234 |
$ 1,360 |
$ 518 |
|||
(1) |
EBITDA and Adjusted EBITDA are non-GAAP financial measures. The reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is presented in the table above. |
(2) |
Effective 1Q 2023 reporting, interest expense is shown on a net basis. Includes interest income and loss on early extinguishment of debt. |
(3) |
EBITDA and adjusted EBITDA figures have been revised to reflect interest expense being shown on a net basis. |
Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA |
|||||||
Three Months Ended |
Three Months Ended |
||||||
March 31, |
Dec 31, |
March 31, |
March 31, |
||||
Refinery EBITDA |
|||||||
Lake Charles |
726 |
562 |
726 |
339 |
|||
Corpus Christi |
209 |
240 |
209 |
99 |
|||
Lemont |
362 |
438 |
362 |
128 |
|||
Total Refinery EBITDA Estimate (1) |
$ 1,297 |
$ 1,240 |
$ 1,297 |
$566 |
|||
Marketing |
37 |
48 |
37 |
26 |
|||
Lubes |
12 |
4 |
12 |
13 |
|||
Terminal & Pipelines |
33 |
34 |
33 |
33 |
|||
Product Supply (2) |
80 |
5 |
80 |
(47) |
|||
Total Non-Refining Businesses EBITDA Estimate |
$162 |
$91 |
$162 |
$ 26 |
|||
Corporate EBITDA Estimate (3) |
(99) |
(107) |
(99) |
(73) |
|||
Total CITGO EBITDA (4) |
$1,360 |
$ 1,224 |
$1,360 |
$518 |
|||
(1) |
The Refinery EBITDA Estimates presented in this press release are non-GAAP financial measures. The Refinery EBITDA Estimates are calculated as refinery hydrocarbon gross margin minus refinery operating expenses and non-operating and income/(expense) items, plus depreciation and amortization. With respect to these components of Refinery EBITDA, we define refinery hydrocarbon gross margin as the estimated value of a refinery's production less the cost of hydrocarbons and intermediate feedstocks used by that refinery. In addition, refinery operating expenses reflect estimates of the direct costs and expenses associated with operating the refineries, such as labor and related burden energy, maintenance and materials, and depreciation and amortization. Further, other miscellaneous costs and indirect expenses associated with operating the refineries include certain overhead expenses for crude supply and trading, industrial products and petrochemicals, as well as certain refinery-related equity in the investments of affiliates and insurance proceeds. The amounts allocated to our refineries for certain of these costs and expenses for purposes of our estimates of Refinery EBITDA do not necessarily reflect the full amounts of such costs. |
(2) |
Includes activities related to selling refinery production both externally and to the CITGO Marketing organization, along with any associated hedging activities. |
(3) |
Includes corporate staff and overhead costs, and other corporate-related items. No longer includes Pipelines, which is now shown in the Terminals & Pipelines line. Includes corporate-level derivative activity, if any. |
(4) |
EBITDA figures have been revised to reflect interest expense being shown on a net basis. |
SOURCE CITGO Corporation
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