NEW YORK: The two new top executives at Citgo Petroleum disclosed that net income in the second quarter slid to less than half its level a year earlier, hit by a broad slump for the refining industry as well as complications from US sanctions on Venezuela and Citgo’s split with state-run oil company PDVSA. Chief Executive Officer Carlos Jorda and Chairwoman Luisa Palacios on Thursday laid out a plan to rebuild profits, pay down debt and invest in operations after a jarring split this year from parent Petroleos de Venezuela (PDVSA).
But they will have to work hard to deal with US sanctions on Venezuela, which have affected relationships with suppliers and partners. One contentious issue is whether Citgo or another PDVSA subsidiary is responsible for a payment of almost $1 billion due to bondholders this fall. Houston-based Citgo, the eighth-largest US refiner, ousted its CEO and other top executives early this year and halted all dealings with PDVSA after Washington levied sanctions on Venezuela intended to force socialist President Nicolas Maduro from office. — Reuters
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