Refiner Citgo posts 19% gain in Q3 profit HOUSTON Nov 9 (Reuters) - U.S. oil refiner Citgo Petroleum on Thursday posted a third-quarter net profit of $567 million, up 19% from the $477 million earned in same quarter a year ago on higher utilization rates and strong margins on motor fuel sales, the Venezuela-owned company said in a statement.
Its utilization rate, or how much oil its plants were able to process compared with full capacity, climbed to 95% last quarter, from 89% in same quarter a year ago.
"We delivered another solid quarter both operationally and financially," CEO Carlos Jorda said.
The gains come as the company faces a court-organized auction that could force a breakup of the Houston-based refiner.
The sales process formally began last month, with a first bidding round planned for January and another for May. The forced auction of shares in one of Citgo's parent companies, PDV Holding, whose only asset is Citgo, would raise proceeds to pay Venezuela-linked creditors owed billions of dollars.
Three U.S. refiners - Marathon Petroleum (MPC.N), HF Sinclair (DINO.N) and PBF Energy (PBF.N) - have signaled they are either not interested in a bid for the shares or are not looking to acquisitions to expand.
ACCUMULATED GAINS
Citgo's results mirrored those of other U.S. refiners that last quarter have delivered strong earnings from producing gasoline, diesel and jet fuel and by running their plants near-full capacity.
Strong performance by Citgo's three U.S. refineries allowed the company to increase its liquidity and pay a $1.12 billion dividend to its Citgo Holding parent. It ended the quarter with $3.86 billion in cash and untapped borrowing.
Through the first nine months this year, Citgo earned nearly $1.9 billion, compared with $2 billion in the same period last year.
The company's domestic branded and unbranded sales were 418,000 bpd for the quarter, while exports averaged 157,000 bpd versus 196,000 bpd in the same period of 2022.
Citgo also said it has restored operations after a fuel contamination incident in Tampa, Florida, and continues working with affected customers to process claims.