Caltex delivers record profit

Caltex recorded an after-tax profit of $522 million for the 2015 full year, including a gain relating to significant items of $29 million after tax.

This compares with the 2014 full-year profit of $20 million, which included significant losses of $112 million after tax, relating to restructuring costs associated with the company transformation.

The 2015 result includes a product and crude oil inventory loss of $135 million after tax. This compares with the inventory loss of $361 million after tax in 2014.

On a replacement-cost-operating-profit (RCOP) basis, Caltex recorded an after-tax profit for the 2015 full year of $628 million, excluding significant items. This compares with an RCOP after-tax profit of $493 million for the 2014 full year, excluding significant items.

The overall result reflects an improved supply and marketing result incorporating the now established Ampol Singapore sourcing and supply operations and company-wide Tabula Rasa benefits (cost and capital efficiencies), offset by the ongoing competitiveness of wholesale and commercial markets and additional costs of operating the new Kurnell terminal in Sydney.

Favourable US-dollar-denominated refiner margins, supported by a lower Australian dollar, have underpinned a record financial result at the Caltex Lytton refinery in Queensland.

Sales volumes are five per cent below last year, reflecting lower diesel demand as a number of LNG projects near completion and the timing of some major supply contracts.

Caltex has vigorously defended contract volumes in 2015 and secured new supply volumes in 2016.

From a product mix perspective, Caltex continues to drive premium fuels sales (including Vortex diesel). Higher sales of premium grades of petrol and retail diesel continue to offset the long-term decline in demand for unleaded petrol, including E10.

The increased penetration of premium Vortex products has been driven by targeted investment in growth, including new retail service stations, the refurbishment of existing service stations and increased marketing spend.

Caltex says it supplies more than one-third of all transport fuels in Australia and remains committed to maintaining secure and reliable supply to its commercial and retail customers.

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