Growth in marketing and distribution driving Caltex Australia’s profits

Caltex Australia recorded an after-tax profit of A$57 million (US$59.4 million) in 2012, compared to an after-tax loss of A$714 million (US$747 million) in 2011.
The 2012 result includes product and crude oil inventory losses of A$92 million (US$96.3 million) after tax, compared with an inventory gain of A$138 million (US$144 million) after tax in 2011.
Caltex Managing Director and CEO Julian Segal said, “The higher 2012 result is due to continued growth within marketing & distribution, a lower depreciation charge as a result of the 2011 refinery impairment, and improved refinery reliability and higher production volumes which allowed Caltex to capitalise on more favourable externalities, including strong second half refining margins.”
Marketing & Distribution earnings before interest and tax (EBIT) of A$736 million (US$770 million) was 6% higher than 2011, which was also a record year. This result reflects the company’s strategy of driving sales of premium petrol and retail diesel, jet fuel and lubricants. This is despite the ongoing industry-wide trend of declining regular unleaded petrol sales, exacerbated by more aggressive competition.
The growth in earnings was supported particularly by upgrades in the company’s retail stores and supply chain infrastructure, the successful integration of two small acquisitions and the doubling of the capacity of the Sydney jet fuel pipeline. (February 27, 2013)