Citgo Petroleum profit jumps to $936 million in second quarter
Citgo Petroleum reported a significant increase in profit for the second quarter, reaching $936 million, up from $100 million in the same period last year. The Venezuela-owned U.S. refiner attributes the growth to solid refining margins due to global supply disruptions. Operating refineries with a combined capacity of 829,000 barrels per day, Citgo's ownership may transfer to an affiliate of Elliott Investment Management pending approval from the U.S. Treasury Department.
The potential change is a result of a court-ordered auction in Delaware last year aimed at paying Venezuela-linked creditors. Global supply disruptions, including those caused by the U.S.-Israeli war on Iran and shipping bottlenecks in the Strait of Hormuz, have driven up fuel supply premiums, benefiting many U.S. refining firms.
Looking ahead, Citgo is balancing near-term market opportunities with longer-term investment priorities by shifting certain planned investments into 2027. The company projects full-year 2026 earnings before interest, taxes, depreciation, and amortization of approximately $5.8 billion, with a year-end cash balance expected at around $5.7 billion, assuming no changes in projected working capital.
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