This week, Caltex announced its financial results for the six months ending June 30, 2018.
In a statement, the company said: “[The] announcement is broadly in line with guidance and demonstrates the significant progress in Caltex’s transformation, with the completion of the commercial separation of the convenience retail and fuels and infrastructure businesses, the continuing retail site transition, the new partnership with Woolworths, as well as the delivery of strong results from the regional businesses, all of which provide the foundation for further, sustainable growth.”
Result highlights
- 1H 2018 HCOP (historic cost profit) NPAT (net profit after tax) up 45 per cent to $383 million, including inventory gains of $87 million after tax. There were no significant items.
- 1H 2018 RCOP (replacement cost profit) NPAT up one per cent to $296 million, which is within guidance and includes the combined negative impacts of a lower Caltex refiner margin, lower retail-fuel margin affected by rising crude and product prices, and the impact of the ongoing transition of franchise sites to company operations.
- Fuels and infrastructure EBIT (earnings before interest and tax) up nine per cent to $314 million, despite lower refining margins. Total volumes up 12 per cent to 10.2BL in 1H 2018, including a 3.5 per cent increase in domestic sales (retail and wholesale) to 8.4BL, and an 87 per cent increase in international volume to 1.8BL.
- Convenience retail EBIT of $161 million, down 14 per cent as a result of the impact of rising crude and product prices in 2018, versus falling prices in 2017 and ongoing store transitions.
- Interim dividend of 57c per share (fully franked) declared, representing a payout ratio of 50.3 per cent.
Woolworths partnership
On July 5, Caltex extended and expanded its long-term partnership with Woolworths. Caltex says convenience retail will benefit from the wholesale grocery supply, loyalty and redemption arrangements, and that the retention of the long-term fuel supply to Woolworths will underpin future growth in fuels and infrastructure.
