Caltex transformation delivers solid operating profit

Caltex Australia’s transformation to an integrated value chain has seen the company deliver a solid operating result for the first half of 2015.

For the first half of 2015, Caltex Australia recorded an after-tax profit of $375 million on a historic cost-profit basis, including a significant gain of $29 million (after tax), relating to the sale of surplus property in Western Australia.

The result compares favourably with the $163 million after-tax profit for the first half of 2014.

The 2015 half-year result includes crude and product inventory gains of $95 million after tax, compared with crude and product inventory losses of $10 million after tax for the previous half-year to June 30, 2014.

On a replacement cost of sales operating profit basis, Caltex’s after-tax profit was $251 million for the first half of 2015. This compares with $173 million for the first half of 2014.

The supply and marketing segment delivered an EBIT result of $264 million for the 2015 half-year.

Total sales volumes of transport fuels for the first half of 2015 were 7.7 billion litres, 4.4 per cent lower than in the same period of 2014. The result primarily reflects the timing impact of a major diesel supply contact loss, without the full benefit in the first half of a new and larger long-term diesel supply contract.

Higher sales of premium fuel grades Vortex 95 and Vortex 98 partially offset the long-term decline in demand for unleaded petrol, including E10. Total petrol volumes fell 2.2 per cent to three billion litres, broadly in line with industry trends.

Total diesel volumes declined 5.2 per cent to 3.5 billion litres. Premium Vortex diesel products continue to grow strongly across Caltex’s retail segment, with premium diesel now representing 30 per cent of total diesel sales.

Caltex says it continues to invest profitably in its retail site and terminal network, with eight new to industry (including one diesel stop), seven new to Caltex and four ‘knock down and rebuild’ retail sites completed in the first half of 2015.

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