Caltex first-half profit jumps 52%

[csv8]

Caltex first-half profit jumps 52%
August 28, 2009 - 10:49AM

The oil refiner Caltex Australia Ltd has posted a 52 per cent rise in first-half net profit, due to better refiner margins, but expects the second half to be challenging.

Caltex said its first-half net profit on a replacement cost basis (RCOP), which excludes the impact of the rise or fall in oil prices, was $298 million, up from $196 million in the prior corresponding period.

The result was above the company's guidance in June for a net profit for the six months to June 30 of between $270 million and $295 million.

Reported net profit, which includes inventory gains, was up two per cent at $362 million.

Revenue fell 27 per cent to $8.89 billion in the first half.

Caltex, which is 50 per cent owned by US oil giant Chevron Corp, did not declare an interim dividend.

Caltex said it expected the second half to be challenging as the favourable key externalities that were seen in the first half were unlikely to be repeated in the second half.

It said a higher Australian dollar and higher crude oil prices would moderate its refiner margin.

"Global refiner margins will likely remain under pressure in the second half of 2009 because of depressed demand and expected growth in global surplus refinery capacity," Caltex said.

"The outcome will depend on the actual output of the global refining network and the rate and timing of product demand recovery.

Caltex said in the medium term, it was indirectly leveraged to the key growth markets of China and India, and the Australian economy was proving to be resilient, compared with Europe and the US.

Caltex said in the longer term it would continue to focus on the factors and opportunities that are within its control - refinery reliability, cost control, efficiency - and take advantage of appropriate external opportunities that present themselves.

Caltex said its average margin for the first half, when converted from US dollars into Australian currency, was eight cents a litre, up from 7.02 cents in the same period in 2008.

The company said its record first half result was underpinned by robust marketing volumes, strong operational performance and favourable externalities.

It said overall transport fuel sales were maintained in line with the same period in 2008, with continued growth in jet and diesel sales offsetting the contraction in petrol demand.
My comment "and they reckon we aren't being overcharged for petrol !!!!"