HOUSTON -- CITGO Petroleum Corporation reported strong financial and operational performance as the Board of Directors reviewed with the Shareholder the company's performance during the first nine months of 2019 at a meeting at CITGO headquarters in Houston.
The report included net income of $270 million for the first nine months of 2019, $215 million in the third quarter, all during a particularly challenging time to many Gulf Coast refiners. The report also reflected an approximate 20,000 barrels per day (bpd) increase in refining capacity. This increase is just the second refinery capacity increase in 20 years.
CITGO is also on pace to have one of the best years in its history in terms of safety and environmental performance, which remain vital core values of the company. Additional operational and performance highlights include:
-- Refinery output. Total refinery throughput in Q3 was 825,000 barrels-per-day (bpd) of which crude runs were 724,000 bpd, utilizing 94% of rated crude refining capacity. Additional intermediate feedstocks accounted for 101,000 bpd. YTD refinery throughput was 784,000 bpd, of which crude was 676,000 bpd and intermediate feedstocks totaled 108,000 bpd.
-- Enhanced flexibility. Due to the flexibility of its refineries, the company continued maximizing margins through purchases of economical crudes. Q3 domestic crude runs in the Gulf Coast averaged 366,000 bpd, setting a new quarterly record assisted by the additional light crude processing capability added during the recent Corpus Christi refinery turnaround.
-- Increased exports. The company continued to take advantage of the location of its Gulf Coast refineries by increasing participation in export markets, which now represent 36% of Gulf Coast light fuels production.
-- Corporate governance. Since its appointment in early 2019, the Board has instituted a number of measures to enhance corporate governance, including a review of the company's regulatory compliance system and a comprehensive audit.
"CITGO's strong performance is a testament to the dedicated efforts of our Board, management team and employees," said CITGO Board Chair Dr. Luisa Palacios. "Throughout 2019 we have worked diligently to strengthen the company -- building financial strength, operational flexibility and sounder corporate governance. These efforts should continue to pay off as we look to 2020."
According to President and Chief Executive Officer Carlos Jorda, "While we have faced many challenges this year, we remain committed to making and selling quality products, serving our customers and supporting our communities. This focus, in combination with the Board's leadership, positions us for continued success."