Citgo Petroleum Corp., Houston, reported second-quarter 2026 net income of $936 million, about six times higher than $157 million during the first quarter as global supply disruptions stemming from escalated conflicts in the Middle East and Russia bolstered stronger US refined product margins.

In addition to improved margin capture, Citgo's second-quarter results also benefitted from high utilization rates across its three US refineries as the company completed planned and unplanned maintenance works at its 479,000-b/d deep-conversion refinery in Lake Charles, La., and 183,000-b/d Lemont, Ill., refinery near Chicago, Citgo said in a release Aug. 13.

Citgo said second-quarter results included before interest, taxes, depreciation, and amortization (EBITDA) of $1.38 billion and adjusted EBITDA of $1.39 billion, marking the operator’s second-highest quarter on record for adjusted EBITDA.

The company said it continues to balance near-term market opportunities with longer-term investment priorities by shifting certain planned investments into 2027, while maintaining a focus on safe and reliable operations.

Refining throughputs, production

Total refinery throughput across Citgo’s three US refineries during second-quarter 2026 averaged 820,000 b/d, down slightly from 851,000 b/d in the previous quarter. The company attributed the second-quarter decline to turnaround activities and unplanned outages.

Overall crude utilization across the three refineries averaged 97% for the quarter, a slight dip from 99% in the first quarter.

While the Lake Charles refinery hit monthly record-highs of crude throughputs and distillate production in April, throughputs and production rates were down at the Lemont refinery until Citgo wrapped major turnaround activities on the refinery’s fluid catalytic cracking (FCC) and alkylation units, the company said.

Citgo’s second-quarter investments of $114 million were dedicated to turnaround and catalyst works, as well as $128 million in other unidentified capital projects.

As part of its updated full-year outlook, the operator revised its overall 2026 capital expenditures—including turnaround and catalyst spending—down to $867 million from a previous guidance of $985 million following the company’s decision to defer a turnaround of its Lake Charles coker into 2027, as well as postponing a final investment decision regarding funding on a proposed depentanizer to be installed at the site that would presumably be used to improve the quality of the FCC’s gasoline stream.

The company said changes to the two project schedules would keep its broader capital program “on track,” with the program supported by the planned crude unit expansion at Citgo’s 167,000-b/d refinery in Corpus Christi, Tex., and ultimate approval of the Lake Charles depentanizer project, both aimed at improving refining efficiency and product yields.

Full-year 2026 outlook

In its updated full-year 2026 forecast, Citgo said it projects EBITDA of about $5.8 billion and a yearend cash balance of about $5.7 billion, a sharp jump from its previous guidance in May of $3.2-3.6 billion and $3.5-3.9 billion, respectively.

The operator said current refining markets reflect a tight supply-demand balance and a geopolitical risk premium, with commodity forward curves remaining sensitive to macroeconomic and geopolitical developments.