Citgo Raises Profit Outlook by $2B

SUBSCRIBE SEARCH ARTICLES NEWS Citgo Petroleum Corp has raised its 2026 operating profit outlook by $2 billion because of surging fuel margins, according to a document seen by Bloomberg News. Image by selensergen via iStock

Citgo Petroleum Corp., the Venezuelan-owned, US-based refiner, has raised its 2026 operating profit outlook by $2 billion because of surging fuel margins, according to a document seen by Bloomberg News.

Citgo now expects full-year earnings before interest, taxes, depreciation and amortization of $7.7 to $8 billion, according to an updated outlook and preliminary third-quarter results that was shared with investors, but not the public, on Friday. That’s up from the $5.8 billion the company forecast in second quarter earnings released in August. Latin America-focused investor Jorge Piedrahita posted some of the details in the document on social media.

The outlook boost is the latest example of a fuel maker reaping massive rewards from the Iran conflict and the knock-on effects of Russia’s war on Ukraine. ExxonMobil signaled last week that it would likely post record refining earnings when it reports third quarter results at the end of this month. The top three US refiners made over $10 billion of profit in the second quarter alone.

While the US war on Iran has sent oil prices soaring, gains in fuels like gasoline and diesel have far outpaced rises in crude. The skyrocketing costs of fuels has weaved its way into everything from travel to food costs and put upwards pressure on inflation. Global oil benchmark Brent traded above $110 a barrel Monday, a five-month high.

The privately-owned refiner runs three massive US fuel-making plants. 

“Current refining markets continue to reflect a tight supply-demand balance and a geopolitical risk premium,” the company said in the document seen by Bloomberg.

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The company was sitting on about $5.6 billion of cash at the close of business on October 15 according to the document.

Citgo is at the heart of a years-long battle between Venezuela, the US government and investors over its sale to satisfy debts owned by parent company Petróleos de Venezuela SA. A US federal judge in November confirmed Amber Energy, a group affiliated with hedge fund Elliott Investment Management, as the winning bidder with its $5.9 billion offer for the refineries and associated assets.

Citgo plans to release third-quarter results on November 12, reporting Ebitda of $4.5 to 4.8 billion for the nine months ended September 30, the document said. 

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