The profit of Venezuela-owned U.S. refiner Citgo Petroleum jumped to $936 million in the second quarter from $100 million in the same period last year amid solid refining margins related to global supply disruptions, the company said on Thursday.
Ownership of the 829,000-barrel-per-day Houston-based refiner could change to an affiliate of Elliott Investment Management if a court-ordered auction to pay Venezuela-linked creditors completed in Delaware last year is ultimately approved by the U.S. Treasury Department, which remains pending.
Tight supply-demand balance and a geopolitical risk premium marked the quarter, the company said.
Global supply disruptions mostly related to the U.S.-Israeli war on Iran and shipping bottlenecks in the Strait of Hormuz have pushed buyers to pay higher premiums to lock in fuel supplies, leaving higher profits in the hands of many U.S. refining firms this year.
"As we look to the remainder of the year, we are balancing near-term market opportunities with longer-term investment priorities by shifting certain planned investments into 2027," said Chief Executive Carlos Jorda in a release.
Citgo is projecting full-year 2026 earnings before interest, taxes, depreciation and amortization (EBITDA) of some $5.8 billion, and a year-end cash balance of approximately $5.7 billion if there are no changes in projected working capital.
Total refinery throughput averaged 820,000 bpd in the quarter, down from 851,000 bpd in the first quarter due to turnaround activities and unplanned outages, Citgo said. Overall crude utilization fell to 97% across its three refineries, from 99% the previous quarter.
Marketing sales volume was 414,000 bpd, close to the 417,000 bpd of the prior quarter, with cargoes delivered to Europe, the Caribbean and South Africa. The company also grew its jet fuel business, it added.
