The Daily Journal.— Venezuelan-owned U.S. refiner Citgo Petroleum reported a net profit of $936 million in the second quarter of the year, sharply higher than the $100 million it reported during the same period a year earlier, according to Reuters.
Developments in the international energy market drove the company’s stronger financial results, “amid stronger refining margins related to global supply disruptions,” the news agency reported.
Ownership change awaits approval
Despite the operating performance of the Houston-based company — which has a processing capacity of 829,000 barrels per day — its ownership structure remains subject to ongoing legal proceedings in the United States.
Reuters noted that ownership of the refiner “could pass to an affiliate of Elliott Investment Management if the court-ordered auction to repay Venezuela-linked creditors — completed last year — ultimately receives approval from the U.S. Treasury Department.”
So far this year, the U.S. Treasury Department has issued at least two licenses protecting the Venezuelan-owned refiner from its creditors. Although Washington has authorized transactions related to a debt bond issued by Venezuela’s state-owned oil company, it continues to impose restrictions that prevent bondholders from enforcing their claims against Citgo.
With information from Reuters.
