Caltex Australia 1st Half Profit Down 24%; Meets Guidance

Caltex Australia Ltd. (CTX.AU) on Monday reported a 24% fall in first half profit, in line with its guidance, after the refiner was hit by high oil prices, a strong Australian dollar and refinery outages.

Net profit on a replacement cost of sales operating basis--a closely watched measure that excludes the value of its stockpiles--for the six months to June 30 fell to A$113 million from A$149 million a year earlier, in line with Caltex's recent guidance of A$100 million-A$115 million.

Net profit on a historical cost basis rose 91% to A$270 million from A$141 million on inventory value gains.

Global refiners are facing relatively high input costs as fuel demand in the U.S. and Europe remains fragile and cheap supply comes online in Asia. Caltex's refining business competes in a regional marketplace where product can be moved internationally, so its margins are affected by regional demand and supply dynamics.

Its marketing business, however, continues to perform relatively strongly in a buoyant Australian market. First half fuels sales volumes rose 4.3%, underpinned by continued growth in commercial diesel, jet, retail and premium fuels, Caltex said.

It declared an interim dividend of 17 cents a share, down from 30 cents a year earlier.

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

Caltex Australia (ASX:CTX)
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