CITGO Reports First Quarter 2020 Results.

HOUSTON: CITGO Petroleum Corporation ("CITGO") today reported its first quarter 2020 performance results, including a net loss of $159 million and an adjusted EBITDA1 of $38 million excluding the effect of special items.

The onset of the COVID-19 pandemic combined with crude oil demand destruction were drivers behind the Company's first quarter results and impacted the industry as a whole. The first quarter net loss was particularly affected by the lower of cost or market ("LCM") inventory valuation adjustment, a result of rapidly falling crude oil prices affecting refiners across the industry.

"The LCM adjustment resulted in a non-cash loss that had no impact on CITGO's overall liquidity," said CITGO President and CEO Carlos Jorda. "Our management team will continue monitoring the economic environment closely, using the flexibility of our refineries and the diversification of the markets where we operate to adjust our product slate and refinery runs while continuing to evaluate additional cost reductions."

First quarter operational and performance highlights:

Turnaround activity - Maintained existing turnaround plans

Refinery throughput - Total refinery throughput in the first quarter was 764,000 bpd, including 114,000 bpd of intermediate feedstocks, resulting in an overall crude utilization of 91%.

Exports - First quarter refined products exports averaged 181,000 bpd.

Operational excellence - CITGO refineries continue to be recognized for outstanding performance. The Lemont refinery recently received the American Fuel and Petrochemical Manufacturers (AFPM) Elite Gold Safety Award in recognition of top industry safety performance and excellence in program innovation and leadership. The CITGO Corpus Christi refinery earned the 2019 Energy Star designation from the U.S. EPA.

Special items - Several one-time or special items impacted our net loss in the first quarter 2020. The net loss was primarily driven by LCM adjustment of approximately $332 million. This impact was partially offset by an approximately $172 million insurance recovery gain related to the previously incurred costs related to the Athos matter and an approximately $48 million tax benefit as a result of certain Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provisions.

Second Quarter Strategic Update:

CITGO is actively responding to the extremely challenging economic conditions with the following strategic initiatives:

Refinancing - On June 9, 2020, CITGO...