Caltex Australia expects higher first-half profit

Despite plans to close its refining operations, Caltex Australia expects an 81% increase in its first half profit due to higher refinery production. Caltex’s net profit for the first six months of the year, on a replacement cost basis, was expected to be between A$185 million (US$194.7 million) and A$205 million (US$215.8 million), up from A$113 million (US$118.9 million) in the first half of 2011. The company said it prefers the replacement cost basis because it excludes the effect of the changes in the world oil price and reflects its underlying performance. On a historical cost basis, the company’s first half profit is expected to be between A$150 million (US$157.9 million) and A$170 million (US$178.9 million), down from A$270 million (US$284.1 million) in the same period last year. Caltex attributed the increases to improved transport fuel margins, increased refinery production volumes, and improvements to the company’s refinery operations; last year’s production was disrupted by maintenance and unplanned outages. For the first half of this year, the company’s production of petrol, diesel and jet fuel is expected to reach 5.2 billion liters, up from 4.7 billion liters in the first half of last year. (June 28, 2012)