Caltex Refiner Margin Slips; Says High Gasoline Prices Hitting Demand

Caltex Australia Ltd. (CTX.AU) on Thursday said that higher crude oil prices and excess gasoline supply in Asia are continuing to put pressure on its refining margins.

It also warned that higher gasoline prices in Australia are starting to hurt demand.

Australia's only listed oil refiner, 50%-owned by Chevron Corp. (CVX), said its refiner margin for the month of April was US$6.16 a barrel, lower than the US$6.32 for March and US$6.44 for February. A year ago, the April refiner margin was US$6.79.

Regional oil prices have been pushed up by tensions in the Middle East and North Africa, and the Japanese earthquake and tsunami. Caltex buys oil to turn into refined products like gasoline or imports refined products to market directly.

"The tightness in crude oil markets generally resulted in premiums being paid over and above the dated Brent benchmark price," Caltex said.

CLSA analyst Mark Samter said the April margin figures are "an extremely poor result and would be substantially loss-making at a time when seasonally things should have been improving".

"We note with interest the comments that higher retail board prices have impacted gasoline demand. It appears the first signs of demand destruction (are) occurring in Australia," Samter said.

CLSA has a particularly bearish view of Caltex, with its A$140 million first half net operating profit forecast about 15% below consensus.

At 0210 GMT, Caltex shares were up 1.3% at A$13.81.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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