CITGO Reports First Quarter 2022 Results

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HOUSTON, May 17, 2022 /PRNewswire/ -- CITGO Petroleum Corporation today reported net income of $245 million for the first quarter 2022, compared to net income of $21 million for the fourth quarter of 2021 and a loss of $(180) million for the first quarter of 2021.

CITGO Logo (PRNewsfoto/CITGO Corporation)
CITGO Logo (PRNewsfoto/CITGO Corporation)

Reliable operations and favorable market conditions enabled CITGO to generate EBITDA1 of $518 million for the first quarter of 2022, compared to EBITDA of $236 million and Adjusted EBITDA of $139 million for the fourth quarter of 2021. There were no special items for the first quarter of 2022.

"We have worked hard to position CITGO operationally and commercially to benefit from improved refining margins, and the first quarter provided this opportunity," said Carlos Jordá, CITGO President and CEO. "I'm equally pleased that we successfully completed a major Cat Cracker (FCC) and Alkylation plant turnaround at our Corpus Christi refinery, and both of the affected units are back in operation."

Q1 2022 Highlights:

  • Throughput – Crude throughput in the first quarter of 2022 was 731,000 barrels-per-day (bpd), resulting in overall crude utilization of 95%. This compares to fourth quarter of 2021 throughput of 723,000 bpd, and overall crude utilization of 94%. Feedstock processing for the first quarter 2022 was 20,000 bpd compared to 73,000 bpd for the previous quarter, due primarily to the Corpus Christi turnaround.

  • Turnarounds and Capital Investments - Invested $205 during the first quarter, consisting of $133 in turnaround and catalyst changes and $72 million in capital expenditures. This compares with a total spend of $49 million during the previous quarter with no turnaround activity. The turnaround expenses were concentrated in Corpus Christi, where the FCC and Alkylation turnarounds required extensive refractory and metal repairs in the reactor, extending the duration and cost. Manpower during the turnaround for both units peaked at 2,460 contractors, with an outstanding safety performance with no recordable incidents. At Lake Charles, catalyst changes were done for A Reformer, and turnarounds for C Reformer and the Unicracker were advanced after the reformer experienced catalyst losses.

  • Operational Excellence – Health, Safety and Environmental (HSE) performance was excellent, and the Company is on pace for record-setting occupational safety and environmental performance for 2022.

  • Commercial Excellence - CITGO expanded its customer base in Latin America, and export/domestic marine sales increased 61% over first quarter 2021 to 214,000 bpd. The Company's Lubricants and Light Oils business units also contributed favorably to the first quarter results.

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.

"While significant energy-market uncertainties remain in the near term, we are confident that through reliable and safe operations we can continue providing a consistent supply of fuel products to our customers in the North American and Latin American markets," Jordá concluded.

Notable Personnel Changes:

CITGO also continued to strengthen its leadership team in the first quarter with the appointment of Bob Kent to the CITGO Petroleum Board of Directors. Jerry Dunn was also named Vice President of Refining, replacing Art Klein who retired after more than 40 years of service to CITGO, and Sterling Neblett was named Vice President and General Manager of the Lake Charles refinery, succeeding Mr. Dunn in that role. In addition, Joe Carroll was named the Company's first-ever Chief Information Officer.

Stephen McNabb also was named CITGO Treasurer in May 2022.


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 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. 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 5 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 6 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 (loss) to Adjusted EBITDA

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

Three Months Ended

March 31,


March 31,




Net income (loss)




Plus (less)

Interest expense, including finance lease




Income tax expense (benefit)




Depreciation and amortization








Plus (less)

Hurricane Laura expenses, net of insurance recoveries



Winter Storm Uri costs, net of insurance recoveries


Loss on early extinguishment of debt


LIFO inventory permanent dip impact


Charitable contributions


Adjusted EBITDA




nm* not meaningful

Select items affecting Adjusted EBITDA during the periods shown above were:

– Hurricane Laura expenses (all periods presented): To date, we incurred approximately $94 million in repair costs, of which approximately $50 million were recovered through insurance.

– During 1Q 2022, CITGO did not incur any significant costs associated with the repairs from the damages caused by Winter Storm Uri (to date: $24MM). Out of $24MM approximately $14MM were recovered through insurance.

– LIFO permanent dip (4Q 2021): We incurred approximately $100 million benefit in 2021 because of selling prior years' inventory layers at prices above cost.

Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA1

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

Three Months Ended

March 31,

December 31,

March 31,




Refinery EBITDA:

Lake Charles




Corpus Christi








Total Refinery EBITDA Estimates
















Corporate and other




Consolidated EBITDA




1 See "Additional Information – Refinery EBITDA Estimates" beginning on page 3 of this release for additional information regarding how we calculate and estimate Refinery EBITDA.


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SOURCE CITGO Corporation