Citgo Petroleum Corporation’s net profits (after deducting taxes and interests) totaled 207 million $ for the first semester of 2004, including 172 million in the second quarter, according to Luis Marín, president of the corporation.
Compared to last year’s results for the same period (excluding in both years the incomes for compensations paid by insurance companies), the company achieved an 88% increase for the second quarter and 32% for the whole semester.
These results are the product of new strategies by the company and the headquarters, which allowed an efficient use of the cash flow, that made possible a 200 million $ debt reduction; and an extension of the payment deadline of 95 million $ in Industrial Revenue Bonds (IRB) -very low interest bonds, exempted from taxes and securities-, that the company uses as a source of low cost capital.
Also, the second water treatment unit in the Lake Charles refinery was put into use, as part of a program to meet the requirements of the new environmental regulations, and to produce environmentally friendly gasoline.
Furthermore, the National Petrochemicals and Refineries Association of the United States (NPRA), acknowledged the refineries for their safety policies.
The Citgo refineries, where light crude oil are processed, used 99% of their capacity in the second quarter, after using 84% in the previous quarter.
This is due to the great amount of maintenance work performed throughout this period, which included budgeted and timely suspension of plant activities in order to carry out thorough inspections.
Meanwhile, total expenses during the first semester of the year were 80 million $, great part of which were invested during the first quarter. This, by the way, is a record amount, considering that the yearly average since 1995 has been 60 million $.
Marín pointed out that the company took steps to strengthen links between Citgo and its true owners, the Venezuelan people. Among these initiatives are the promotion of opportunities for Venezuelan companies, the alignment of Citgo with the policies of Petróleos de Venezuela (Pdvsa, the Venezuelan state owned oil corporation) and the Ministry of Energy and Mining, and the promotion of our country’s image abroad, by supporting our athletes and other national values. An example of this policy is the support received by our formula 1racer, Milka Duno, and by the Venezuelan ultra-light plane pilot, Omar Contreras, in his crossing of South America.
Published in Quantum, 26th issue