First Profit in Seven Quarters – Citgo Petroleum

Citgo Petroleum on Monday announced small second-quarter earnings, the first in seven quarters. High fuel exports have replaced a weak margin, and at the same time, the shutdown of the fuel pipeline has had a significant impact on it.

The impact of the Covid-19 on the universe turned out to be greater than any of us could have imagined. Oil companies have also suffered huge losses due to the changed daily routine.

The transform affected not only supply-demand but also prices. Some factories are still dealing with the effects of the first wave. The new Delta Strain is a different puzzle for traders. The path that humanity must take to be saved is quite challenging and full of challenges. The survivor only knows that they must move forward and take practical steps to improve tomorrow.

Citgo Petroleum’s Potential

Citgo Petroleum on Monday announced small second-quarter earnings, the first in seven quarters. High fuel exports have replaced a weak margin, and at the same time, the shutdown of the fuel pipeline has had a significant impact on it.

Revenue from Petroleos de Venezuela, a state-owned Venezuelan oil company, has come under pressure from the U.S. refining industry after it absents access to Venezuelan oil due to U.S. sanctions. Citgo is also arguing the possible seizure of creditors trying to collect unpaid debts by Venezuela.

The eighth-largest U.S. processor recorded a profit of $ 3 million. The first was after the third quarter of 2019. A year ago, in the second quarter, it suffered a net loss of $ 5 million.

According to the CEO of Citgo, Carlos Jorda, compared to last year, this profitability in the first half of 2021 is entirely satisfactory. Citgo was in the red because of the COVID-19 pandemic the previous year as the pandemic reduced demand for motor fuel.

The company reduced production in May to 418,000 barrels per day (BPD). The total capacity of the plant was 732,000 barrels, up from 575,000 the previous year. Exports rose to 130,000 barrels from 87,000 barrels a year earlier.

The planned overhaul of the building in Christie’s will be moved to the first quarter of next year. This action will help both reduce costs and increase production.

According to Jorda, Citgo’s positions are strong enough to take advantage of the strengthening global economy.

If we consider the reliable forecasts of specialists, everything should gradually go to stabilization, which means that the oil companies will be more adapted to the established reality. The process of adaptation and development will be faster for them.