HOUSTON, March 7, 2024 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO" or "CITGO Petroleum") today reported its 2023 fourth quarter and full-year financial and operational results, with fourth quarter net income of $154 million, EBITDA of $396 million and Adjusted EBITDA of $411 million driven by less favorable refinery gross margins, compared to net income of $567 million, EBITDA of $895 million and Adjusted EBITDA of $833 million for the third quarter of 2023.
For full-year 2023, a continued strong market environment combined with solid operational and commercial results contributed to 2023 net income of $2.0 billion, EBITDA of $3.3 billion and Adjusted EBITDA of $3.2 billion, compared with 2022 net income of $2.8 billion, EBITDA of $4.4 billion and Adjusted EBITDA of $4.4 billion.
"Strong demand, favorable market conditions and solid operational and commercial performance contributed to our second best annual financial performance in 2023," said CITGO President and CEO Carlos Jordá. "These strong financial results enabled us to fund a portion of the repayment of debt at the CITGO Holding level with excess cash, build even more liquidity and strategically invest in our assets, all while upholding our commitment to safe, reliable and responsible operations."
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. For additional information, please see the information under "General Information ? Non-GAAP Financial Measures" on page 4 of this press release and the reconciliation on page 5 of this press release. |
Operational Highlights
Financial Highlights
About CITGO
CITGO owns and operates three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 807,000 bpd, located in Lake Charles, Louisiana, Corpus Christi, Texas and Lemont, Illinois. Our refining operations are supported by an extensive distribution network, which provides reliable access to our refined product end-markets. We own 34 active refined product terminals with a total storage capacity of 18.1 million barrels and have equity ownership of an additional 3.5 million barrels of refined product storage capacity through our joint ownership of an additional 8 terminals, spread across 22 states. In addition, we own or have an equity interest in four additional terminals, consisting of approximately 1 million barrels of refined storage capacity, which are currently inactive or only utilized to store feedstocks used in refining operations. We also have access to approximately 150 active third-party and related-party terminals through exchange, terminalling and similar arrangements. Our retail network consists of more than 4,000 independently owned and operated CITGO-branded retail outlets located east of the Rocky Mountains. We and our predecessors have had a recognized brand presence in the U.S. for over 100 years.
ADDITIONAL INFORMATION
General:
CITGO publishes financial and other information on its website, including reports of quarterly and annual results of operations. While CITGO's historical financial information is presented in accordance with U.S. generally accepted accounting principles ("GAAP"), CITGO is not an SEC reporting company and does not report all information required of SEC reporting companies. In addition, CITGO publishes certain non-GAAP financial information, including EBITDA and Adjusted EBITDA, as discussed below.
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 many of which are beyond CITGO's control, that could result in expectations not being realized or could otherwise materially and adversely affect CITGO's business, financial condition, results of operations and cash flows. 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 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. For additional information, please see CITGO's most recent annual report and other reports to CITGO noteholders, including the information set forth under the caption "Risk Factors." CITGO disclaims any duty to update any such forward-looking statements.
Operational Metrics and Non-GAAP Financial Measures:
This press release also contains operational metrics and non-GAAP financial 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 presented in addition to and should not be viewed as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, CITGO's non-GAAP financial measures may differ from non-GAAP measures used by other companies in our industry. We believe these non-GAAP financial measures, when presented in conjunction with comparable GAAP measures, provide useful supplemental information regarding underlying trends in the Company's operating performance by excluding items that may not be indicative of the Company's 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, as well as the reconciliation of Refinery EBITDA Estimates to CITGO's consolidated EBITDA set forth on page [6] of this press release.
Reconciliation of Net Income to EBITDA | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||
($ in millions) | |||||||||||
Net income (1) | $ | 154 | $ | 567 | $ | 2,038 | $ | 2,814 | |||
Excluding the impacts of: | |||||||||||
Interest expenses, net (2) | 15 | (4) | 13 | 222 | |||||||
Income tax expense | 51 | 164 | 593 | 774 | |||||||
Depreciation and amortization | 176 | 168 | 649 | 590 | |||||||
EBITDA (3) | $ | 396 | $ | 895 | $ | 3,293 | $ | 4,400 | |||
NISCO Impairment | - | - | - | 15 | |||||||
LIFO Inventory Permanent Dip | 15 | - | 15 | (5) | |||||||
Legal Settlement | - | (54) | (54) | - | |||||||
Vicksburg Terminal sale | - | (8) | (8) | - | |||||||
Adjusted EBITDA (3) | $ | 411 | $ | 833 | $ | 3,246 | $ | 4,410 | |||
(1) Effective as of December 1, 2023, net income includes earnings attributable to assets contributed by CITGO Holding, Inc. to CITGO Petroleum Corporation during the fourth quarter of 2023. |
(2) Effective as of January 1, 2023, interest expense is presented on a net basis, which reflects the impact of interest income. |
(3) EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA and Adjusted EBITDA for all periods prior to January 1, 2023, have been adjusted to present interest expense on a net basis. |
Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||
($MM) | |||||||||||
Lake Charles | 171 | 491 | 1,753 | 2,447 | |||||||
Corpus Christi | (4) | 206 | 484 | 980 | |||||||
Lemont | 179 | 169 | 935 | 1,163 | |||||||
Total Refinery EBITDA Estimate (1) | $ | 346 | $ | 866 | $ | 3,172 | $ | 4,590 | |||
Marketing | 53 | 37 | 156 | 144 | |||||||
Lubricants | 5 | 6 | 37 | 26 | |||||||
Terminals & Pipelines | 24 | 32 | 119 | 140 | |||||||
Product Supply (2) | 64 | (70) | 80 | (143) | |||||||
Total EBITDA Estimate for Non-Refining Businesses | $ | 146 | $ | 5 | $ | 392 | $ | 167 | |||
Corporate EBITDA Estimate (3) | (96) | 24 | (271) | (357) | |||||||
Total CITGO Consolidated EBITDA (4) | $ | 396 | $ | 895 | $ | 3,293 | $ | 4,400 |
(1) Refinery EBITDA Estimates and EBITDA Estimates for the Non-Refining Businesses are non-GAAP financial measures. The table above includes further detail on a by refinery basis, as well as for CITGO's Non-Refining Businesses. CITGO's Consolidated EBITDA also reflects hedging activities associated with procuring crude and feedstocks for the refineries. |
(2) Includes activities related to selling refinery production both externally and to CITGO's Marketing function, along with any associated hedging activities. Includes immaterial reallocation of activity from Product Supply to Refinery EBITDA Estimates in prior periods. |
(3) Includes corporate staff and overhead costs, other corporate-related items and corporate-level hedging and derivatives activities. Results for the Pipelines business unit are included as part of Terminals & Pipelines. Also includes immaterial reallocation of activity from Corporate EBITDA to Refinery EBITDA in prior periods. |
(4) EBITDA amounts for prior periods have been revised to reflect interest expense on a net basis. |
SOURCE CITGO Petroleum Corporation
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