Caltex expects first half profit in range with last year
Oil company Caltex, which supplies a third of Australia’s transport fuel, says it expects net earnings for the June half year to be broadly in line with last year in the range of $245 to $260 million despite challenging conditions.
Caltex said in the first five months of 2016, its average margin was squeezed, being unfavourably priced at $US9.80 per barrel compared to the 2015 first half average of $US16.00 per barrel.
Resource companies have been hit by a slump in commodity prices on worries about slowing growth in China and oversupply.
The company said half year historic cost profit after tax would range between $310 and $330 million, which included significant items.
Caltex said sales volumes of transport fuels for the first half of 2016 edged higher to 7.7 billion litres, while increased sales of premium fuels and jet fuel helped offset declines in unleaded petrol and its ethanol-based E10.
Sales from its Lytton refinery in Queensland in the first half is expected to total 2.9 billion litres, a jump of 20 per cent from the previous corresponding period.
However, Caltex expects Lytton to contribute only between $85 million and $95 million for the half year, down from $154 million in the first half of 2015.
“We continue to capture opportunities as we optimise the integrated value chain and maintain our position,” the company said in a statement to the ASX.