By Marianna Parraga
HOUSTON (Reuters) -Citgo Petroleum’s profit rose to $167 million in the third quarter from $100 million in the previous period, while the liquidity of the Venezuela-owned refiner increased to $2.75 billion from $2.6 billion, the company said on Thursday.
The Houston-based company, which in the second quarter returned to profit after two consecutive periods of losses, is fighting in Delaware to suspend the auction of its parent, PDV Holding, in a court-ordered process to pay creditors for debt defaults and expropriations in Venezuela.
On Thursday, Delaware Judge Leonard Stark denied motions by the Venezuela parties and bidder Gold Reserve to disqualify him, the court officer and advisors overseeing the auction, which could allow the sale process to move forward for now.
Improved refining margins led to the third quarter’s results, the company said in a release.
“Our refineries performed reliably as market conditions improved during the quarter,” said the company’s chief executive, Carlos Jordá.
Planned maintenance was completed at Citgo’s Lake Charles, Louisiana, refinery as well as preparations for a major turnaround at its Corpus Christi, Texas, refinery. The company’s crude refining capacity will rise to 829,000 barrels per day starting in the fourth quarter, from 807,000 bpd currently.
Citgo plans to use a portion of its quarter-end liquidity of $2.75 billion, which includes cash and credit facilities available, to complete the redemption of $650 million in outstanding notes due next year, it said.
After the redemption, it will have repaid more than $1.8 billion in senior notes and industrial revenue bonds this year.
Citgo’s cash flow and financial results are key metrics for the company’s valuation as part of the Delaware auction.
(Reporting by Marianna Parraga; Editing by Nathan Crooks and Nia Williams)
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