HOUSTON, Nov. 15, 2021 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO") today reported its third quarter 2021 financial results, including a net loss of $4 million, compared to net income of $3 million for the second quarter. Marking the Company's second consecutive quarter of positive EBITDA1 after three straight quarters of negative EBITDA, EBITDA in the third quarter was $194 million, compared to EBITDA of $214 million in the second quarter of 2021. The $20 million decline in quarter over quarter EBITDA was primarily due to the effects of a number of corporate events that are discussed below, as well as compressed margins in the Supply, Marketing and Lubes businesses, which combined to more than offset a $55 million improvement in refining EBITDA compared to the second quarter.

The decline in EBITDA compared to the second quarter was due in part to the reinstatement of CITGO Petroleum employee salaries and benefits in the third quarter and receipt of a few one-time benefits in the second quarter that were not repeated in the third quarter. These benefits included insurance recoveries, net of expense, related to Winter Storm Uri damages, returned insurance premiums from our property and business interruption providers and dividends from OIL Insurance, the energy industry mutual insurer in which we have an interest as a policy holder. CITGO's Supply, Marketing and Lubes businesses experienced a $20 million decline in quarter over quarter EBITDA, primarily due to compressed margins.

"Better crack spreads, supported by continued demand recovery and low inventory levels, were a welcomed development in the third quarter despite the headwinds of some of our unplanned outages and higher natural gas prices," said CITGO President and CEO Carlos Jordá.

The overall refining backdrop was improved quarter over quarter, resulting in estimated total refining EBITDA of $198 million, compared to $143 million for the second quarter of 2021. However, unplanned outages at both the Corpus Christi and Lake Charles refineries and planned turnaround work at Lake Charles and Lemont led to a reduced combined throughput rate of 85% for the third quarter, compared to 87% for the previous quarter.

"While our quarterly results were challenged despite an improved market environment, we are working to address operational issues as we move into the fourth quarter. Increased mobility is creating more demand for our products, and we will continue working hard to improve our operations so that we are well-positioned to fully capture available margins," continued Jordá. "I'm confident we are taking the necessary steps to finish 2021 strong."

Third Quarter Highlights:

Strategic and Operational

Exports – Third quarter refined product exports averaged 136,000 barrels-per-day (bpd), up slightly from the second quarter of 2021. Stronger export sales are forecasted through the end of the year as Latin America continues to reopen. U.S. Gulf Coast export barrels are forecasted to be more competitive in Q4 as well.

  • Refinery Throughput – Third quarter total refinery throughput of 698,000 bpd, including 44,000 bpd of intermediate feedstocks, was down compared with the previous quarter. As a result, overall crude utilization of 85% was slightly lower than the second quarter 2021 utilization rate of 87%.
  • Operational Excellence – Through September, the Company exceeded its targets for safety and environmental performance and was recently recognized by the International Liquids Terminal Association for outstanding occupational safety performance in 2020. Additionally, both the Lake Charles and Lemont refineries set fuel production records during the third quarter while successfully managing turnaround activities.


  • Capital Spending –– After shifting the timing of the Corpus Christi turnaround to the first quarter of 2022, CITGO is now projecting a total of $425 million in capital, turnaround, and catalyst spending for 2021. September 2021 YTD capital, turnaround and catalyst spending was approximately $222 million.
  • Tax Refund – CITGO received approximately $556 million, including interest, from the Internal Revenue Service during the quarter, which constitutes its share of U.S. income tax refund payments under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
  • Accounts Receivable (AR) Facility – On September 30, 2021, CITGO amended its AR facility agreement to increase availability under its existing two-year AR securitization facility from $250 million to $500 million.

Notable Personnel Changes:

  • Luis Giusti was elected Chairman of the CITGO Petroleum Corporation Board of Directors.
  • Carlos Jordá was appointed to the Board of Directors of both CITGO Holding, Inc. and CITGO Petroleum Corporation, while continuing to serve as CITGO Petroleum Corporation President and CEO.
  • Jack Lynch was appointed to the Board of Directors of CITGO Petroleum Corporation and also as the Board Secretary of CITGO Petroleum Corporation and its parent companies PDV Holding, Inc. and CITGO Holding, Inc. Mr. Lynch continues as Vice President Legal and Government Affairs of CITGO Petroleum Corporation.
  • Sam Wilhelm, President of PDV Holding, Inc., was appointed to the CITGO Petroleum Corporation Board of Directors.
  • Shane Moser was named Vice President of Health, Safety & Environment (HSE) of CITGO Petroleum Corporation, reporting directly to Chief Operating Officer Edgar Rincón.
  • Gina Coon, Corporate Treasurer of CITGO Petroleum Corporation, has elected to retire at the end of November 2021. A formal search is underway for a successor.

Industry Overview:

With COVID restrictions easing in the third quarter, increased mobility resulted in improved demand for gasoline, distillate and jet fuel compared with earlier in 2021. For all three products combined, U.S. demand was down 2.4% compared to the third quarter of 2019.

Changes in key drivers during the quarter include the following:

  • U.S. oil demand increased to 20.15 MMBPD (million barrels-per-day) in 3Q 2021, up from 18.4 MMBPD in 1Q 2021, with notable increase in mobility and economic activity. Oil demand is expected to surpass 2019 levels in the second half of 2022.
  • U.S. gasoline demand continued to improve, with 3Q 2021 averaging only 1.7% below 3Q 2019 and exceeding expectations. While demand has remained strong into the fourth quarter, the winter months bring risk of COVID resurgence and thus mobility.
  • U.S. distillate demand exceeded 2019 levels for the past six months, with 3Q 2021 demand approximately 3% above that of 3Q 2019. Diesel and jet exports continue to lag 2019 levels. 
  • U.S. jet fuel demand continues to improve relative to 2Q 2021 on a slow and steady path, with 3Q 2021 approximately 18% under 3Q 2019. 
  • U.S. refinery utilization averaged 90% for 3Q 2021, approximately 3.5% below 2019 and entering the bottom of the five-year range.


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 4,400 locally owned and operated branded retail outlets, all located east of the Rocky Mountains. CITGO Petroleum Corporation is owned by CITGO Holding, Inc.



We publish financial and other information on our website, including reports of our quarterly and annual results of operations and financial position. While our historical financial information is presented in accordance with U.S. generally accepted accounting principles ("GAAP"), except for certain non-GAAP financial measures (see below), we are not an SEC reporting company and do 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 that could cause actual results, developments and business decisions to differ materially from those contemplated by these forward-looking statements. 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. We disclaim 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 they provide useful 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 6 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 7 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 the selected market indexes. As a result, the actual revenue 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 reflects 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 (loss) to Adjusted EBITDA
(unaudited, in millions of U.S. dollars)


Three Months Ended


September 30,


June 30,


September 30,








Net income (loss)







Plus (less)


Interest expense, including finance lease







Income tax expense (benefit)







Depreciation and amortization
















Hurricane Laura expenses, net of insurance recoveries







Charitable contributions







 Winter Storm Uri maintenance/repair costs





LIFO permanent dip impact





Adjusted EBITDA







The primary items affecting adjusted EBITDA during the periods shown above were:

  • Hurricane Laura expenses: we incurred approximately $87 million in repair costs, of which approximately $46 million were recovered through insurance. We expect to incur additional costs, net of any insurance recoveries.
  • Winter Storm Uri expenses: we incurred approximately $24 million in repair costs, of which approximately $14 million were recovered through insurance.


Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA2 
(unaudited, in millions of U.S. dollars)


Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


September 30,











Refinery EBITDA:


Lake Charles











Corpus Christi






















Total Refinery EBITDA Estimate











Supply, Marketing, and Lubes











Corporate and other7 estimate6










Consolidated EBITDA














1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the reconciliation towards the end of this press release for more information.

2 See "General – Refinery EBITDA Estimate" on next page for additional information regarding how we calculate and estimate Refinery EBITDA.

3 The three-month period ended June 30, 2021 primarily benefited from approximately $23 million help for inventory pool related adjustments and $8 million help for insurance matters related to a one time return on CITGO's insurance premium.



SOURCE CITGO Corporation