CITGO Petroleum revised its financial outlook earlier this month during its 2Q21 earnings call, according to three sources following the company.
The oil refining company initially guided to USD 1bn of adjusted EBITDA for the year, so investors pegged 2H21 adjusted EBITDA at roughly USD 500m, the sources said. On the call, CITGO pulled back a little, projecting roughly USD 200m-USD 500m in EBITDA for the second half, the sources noted.
Sources added that the company said it will burn cash in the second half of the year, offset by an expected USD 550m tax refund from the CARES Act.
As of 30 June, liquidity for the company stood at USD 1.2bn through roughly USD 950m of cash and a USD 250m accounts receivables facility, two of the sources continued.
For the quarter, CITGO generated USD 208m in adjusted EBITDA, compared to USD 10m in 1Q21 and negative USD 132m the same quarter the prior year. LTM adjusted EBITDA through 2Q21 amounted to negative USD 168m, the sources said.
The issuer’s USD 650m 6.375% senior secured notes due 2026 last traded at 101.875 to yield 5.803% on 26 August, slightly lower than trades at 102 to yield 5.772% in early August, according to MarketAxess. Its USD 1.125bn 7% senior secured notes due 2025 traded at 102.25 to yield 6.106% on 26 August, slightly lower than trades at 102.562 to yield 6.002% in early August.
CITGO declined to comment.