Venezuela-Owned Citgo Raises Full-Year Profit Outlook by $2 Billion as Fuel Margins Surge, Cash Reaches About $5.6 Billion
Houston — Citgo Petroleum Corp., the Venezuelan-owned, U.S.-based refiner, has raised its 2026 operating profit outlook by $2 billion, according to a document seen by Bloomberg News. Citgo now expects full-year earnings before interest, taxes, depreciation and amortization of $7.7 billion to $8 billion, up from the $5.8 billion forecast in its second-quarter earnings released in August. The updated outlook, together with preliminary third-quarter results, was shared with investors on Friday, October 16, but not made public.
The upgrade reflects surging fuel margins. The document shows Citgo held about $5.6 billion in cash at the close of business on October 15. 'Current refining markets continue to reflect a tight supply-demand balance and a geopolitical risk premium,' the company said in the document. Citgo declined to comment on the document and its revised outlook.
The margin expansion is tied to global events: the conflict involving Iran and the knock-on effects of Russia's war on Ukraine have pushed crude prices higher, while gasoline and diesel prices have risen far faster than crude itself. Global benchmark Brent traded above $110 a barrel on Monday, October 19, a five-month high. ExxonMobil signaled last week that its third-quarter refining earnings would likely set a record, and the top three U.S. refiners earned more than $10 billion combined in the second quarter alone.
Headquartered in Houston, Citgo runs three large fuel-making plants in the United States and is one of Venezuela's most important overseas energy assets, its finances long shaped by energy markets and creditor litigation. The raised outlook indicates its operating position is improving markedly amid tight global fuel markets.
(GSM, based on Bloomberg reporting)
Source: GSM · USA (original Chinese edition)
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