Caltex Forecasts Big Fall In 1st Half Profit

Caltex Australia Ltd. (CTX.AU) said it expects to post a first half operating profit of A$130 million-A$150 million, down sharply from A$298 million last financial year.

UBS said earlier this month it was expecting to Caltex to post a first half adjusted profit of A$176 million.

The oil refiner, 50%-owned by Caltex, also said after the market closed Thursday that its bottom line profit, which includes the value of its stockpiles, for the six months to June 30 is expected to be between A$125 million and A$145 million, down from A$362 million last year.

The reduction in forecast profit is largely attributable to exchange rate volatility, Caltex said.

"Singapore refiner margins were stronger than expected due to the weakness in the Tapis crude price relative to other crudes," Caltex said.

"However, the higher average Australian dollar during the period, compared with the same period in 2009, negatively impacted the Caltex Refiner Margin," it said.

A recent sharp fall in the dollar also negatively impacted Caltex by pushing up U.S. dollar costs.

-By Sydney bureau; 61-2-8272-4680; djnews.sydney@dowjones.com

Caltex Australia (ASX:CTX)
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