12.08.2022 01:38

CITGO Reports Second Quarter 2022 Results

  • Reported second quarter net income of $1.29 billion and EBITDA1 of $1.86 billion
  • Exceptional health, safety and environmental performance
  • Record-setting refinery utilization and throughput
  • Received two AFPM Safety Achievement awards
  • Received ILTA Safety Excellence award

HOUSTON, Aug. 11, 2022 /PRNewswire/ -- CITGO Petroleum reported a second quarter net income of $1.29 billion and EBITDA of $1.86 billion compared to net income of $245 million and EBITDA of $518 million in the first quarter of 2022.

CITGO Logo (PRNewsfoto/CITGO Corporation)

"Reliable and safe operations helped us capitalize on favorable market conditions that were supported by excellent product cracks, high refinery utilization and lean global inventories," said CITGO President and CEO Carlos Jordá. "I am enormously proud of what we accomplished this quarter; not only has our work produced outstanding financial results thanks in large part to exceptional reliability and utilization rates at our refineries, our Health, Safety and Environmental performance was similarly excellent, as evidenced by multiple safety awards at CITGO refineries and terminals."

Q2 2022 Highlights:

Strategic and Operational

  • Throughput – Total throughput for the second quarter of 2022 was 837,000 barrels-per-day (bpd), of which crude runs were 776,000 bpd and intermediate feedstocks were 61,000 bpd. Refinery assets delivered strong reliability results – the best quarterly results in the last five years – with overall crude runs exceeding nameplate capacity and resulting in 101% utilization, marking three consecutive quarters above 94%. The Lake Charles refinery set a new quarterly crude throughput record of 436,000 bpd, significantly surpassing the previous record of 411,000 bpd set in third quarter of 2018. 
  • Operational Excellence – Health, Safety and Environmental (HSE) performance was exceptional, and the Company is on pace for record-setting occupational safety, process safety and environmental performance for 2022. CITGO was also recognized during the quarter with AFPM's Safety Achievement Award for both the Lemont and Corpus Christi refineries, and ILTA's Safety Excellence Award for terminals.
  • Commercial Excellence – We continued growing our exposure into South America, with refined product exports increasing to an average of 195,000 bpd from 157,000 bpd in the first quarter of 2022.


  • For capital spending, we invested $76 million on turnarounds and catalysts and another $59 million on capital projects.
  • Under the CITGO Holding debt agreements, certain Excess Cash Flow (ECF) offers are required to be made to the CITGO Holding Term Loan B lenders and the CITGO Holding noteholders based on 50% of excess cash flow. CITGO Petroleum intends to dividend to CITGO Holding the amounts necessary to make prepayments of CITGO Holding debt pursuant to the ECF offers. Further details regarding the ECF offers are contained in the separate press release issued today, which is available here.

1 EBITDA/Adjusted EBITDA are non-GAAP financial measures. See page 3 of this release for additional information regarding EBITDA and Adjusted EBITDA and the reconciliations to the most directly comparable GAAP financial measure included with this release.

"Our second quarter results are the best in the history of the company," continued Jordá, "and the opportunity to reduce our debt will help us further strengthen the company as we continue supplying our customers through safe, reliable and responsible operations."


Headquartered in Houston, Texas, CITGO Petroleum Corporation is a recognized leader in the refining industry and operates under the well-known CITGO brand. CITGO operates three refineries located in Lake Charles, La.; Lemont, Ill.; and Corpus Christi, Texas, and wholly and/or jointly owns 38 active terminals, six pipelines and three lubricants blending and packaging plants. With approximately 3,300 employees and a combined crude capacity of approximately 769,000 barrels-per-day (bpd), CITGO ranks as the fifth-largest and is one of the most complex independent refiners in the United States. CITGO transports and markets transportation fuels, lubricants, petrochemicals and other industrial products, and supplies a network of approximately 4,300 locally owned and operated branded retail outlets, all located east of the Rocky Mountains. CITGO Petroleum Corporation is owned by CITGO Holding, Inc.



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"), except for certain non-GAAP financial measures (see below), CITGO is not an SEC reporting company and does not report all information required of SEC reporting companies.

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. CITGO disclaims any duty to update any forward-looking statements.

Non-GAAP Financial Measures:

This press release also contains operational metrics and non-GAAP 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 U.S. GAAP and may differ from non-GAAP measures used by other companies in our industry. We consider these non-GAAP financial measures to be important because we believe they provide useful supplemental measures of the operating performance of the Company, exclusive of unusual events, as well as factors that do not directly affect what we consider to be our 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.

Refinery EBITDA Estimates:

The estimates of Refinery EBITDA presented in this press release are calculated as refinery hydrocarbon gross margin minus refinery operating expenses and non-operating and income/(expense) items, plus depreciation and amortization. Our estimates of Refinery EBITDA are intended as estimates of our refineries' earnings before taxes and interest and depreciation and amortization. Shown in the table on page [5] of this press release is a reconciliation of our estimates of Refinery of EBITDA (on an individual and total refinery basis) to EBITDA for our consolidated operations for the respective periods presented therein. In addition, we summarize below the methodologies and assumptions we utilize in connection with our estimates of the various components of Refinery EBITDA.

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. The estimated values of production are not calculated in the same way as revenues for U.S. GAAP purposes, and these values would not be eligible for revenue recognition under U.S. GAAP. Under U.S. GAAP, we recognize revenues at the time products are sold, whereas the estimated values are based on production dates, which may not be the same as the market values at the time of sale. In addition, our U.S. GAAP revenues are based on the actual sales prices of products, while the estimated values are based on selected market indexes. As a result, the actual revenues realized for the sale of products may vary based on the timing, location or actual realized sales price. The cost of hydrocarbons and intermediate feedstocks used to calculate refinery hydrocarbon gross margin are the acquisition costs of these inputs used by a refinery. Costs relating to these items are included as part of cost of sales and operating expenses on our consolidated statements of income and comprehensive income under U.S. GAAP. However, for purposes of calculating refinery hydrocarbon gross margin, these costs are not calculated in the same way that we calculate amounts included in cost of sales under U.S. GAAP, and the amounts reflected in refinery hydrocarbon gross margin may materially understate or overstate the corresponding U.S. GAAP amounts.

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. Costs and expenses relating to these items are included as part of other expenses or cost of sales and operating expenses on our consolidated statements of income and comprehensive income under U.S. GAAP, along with other expenses. 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, or may materially overstate or understate such costs.

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. These items reflect amounts included as part of cost of sales and operating expenses and other income, other expenses, insurance recoveries and equity in earnings of affiliates on our consolidated statements of income and comprehensive income, along with other expenses. 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, or may materially overstate or understate such costs.

Reconciliation of net income to Adjusted EBITDA

(unaudited, in millions of U.S. dollars)

Three Months Ended

June 30,

March 31,

June 30,




Net income (loss)




Plus (less)

Interest expense, including finance lease




Income tax expense (benefit)




Depreciation and amortization









Hurricane Laura costs, net of insurance recoveries




Charitable contributions


 Winter Storm Uri costs, net of insurance recoveries


Adjusted EBITDA




nm: not meaningful



Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA1

(unaudited, in millions of U.S. dollars)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,






Refinery EBITDA:

Lake Charles






Corpus Christi












Total Refinery EBITDA Estimate
























Corporate and other






Consolidated EBITDA







Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/citgo-reports-second-quarter-2022-results-301604750.html

SOURCE CITGO Corporation

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