Citgo Petroleum Corp., the Venezuelan-owned US-based refiner, has raised its 2026 operating profit outlook by $2 billion due to surging fuel margins. The company now expects full-year EBITDA of $7.7 to $8 billion, up from the $5.8 billion forecast in August. This follows surging gasoline and diesel prices that have outpaced crude oil gains amid geopolitical tensions from the Iran conflict and Russia's war on Ukraine.
The top three US refiners made over $10 billion in Q2 profit alone. Citgo cited tight supply-demand balance and a geopolitical risk premium in its updated outlook. The privately-owned refiner runs three major US fuel plants and reported $5.6 billion in cash on October 15.
The company is embroiled in a legal battle over its potential sale to satisfy debts from parent company Petróleos de Venezuela SA. 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.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing