Citgo runs 1Q profit amid 'favorable' market

Venezuelan refiner Citgo ran a profit in the first quarter of 2022 as strong refining margins prompted a year-over-year increase in processing rates.

Citgo's three US refineries ran at a combined utilization rate of 95pc amid "favorable market conditions" in the first quarter, recording total throughputs of 731,000 b/d in the period. The company ran at 83pc utilization in the first quarter a year prior, processing 693,000 b/d.

There could be more production headroom left in Citgo's refining portfolio moving into the second quarter after the company successfully completed a major turnaround of fluid catalytic cracker and alkylation units at the 167,000 b/d Corpus Christi, Texas, refinery.

Citgo earned a profit of $245mn in the first quarter, up from a $180mn net loss in the same period a year prior. The company's first quarter profit nearly matched full-year 2019 profits of $246mn.

Citgo's strong earnings come as the US tries to encourage talks between Venezuelan president Nicolas Maduro and an opposition camp led by Juan Guaido that could lead to a pullback on sanctions that have orphaned the refiner from its parent, state-owned PdV.

By Dylan Chase