Caltex Australia Q1 profit up 33%

Caltex Australia Ltd. said that its first quarter earnings climbed 33% from a year earlier after regional refiner margins defied expectations by remaining relatively strong in the face of an on-going oversupply of fuel. But Caltex warned that a continuing oversupply of gasoline, diesel and jet fuel in the Asia-Pacific region will put the company under pressure, and noted that regional refiner margins have fallen in recent weeks. “The fundamentals have not changed markedly,” Chief Executive Julian Segal told reporters. “There is excess supply; demand is still slow globally–even though in the region it’s better,” he said, adding that he doesn’t expect the supply and demand balance to stabilize in 2010. Net operating profit, which excludes the impact of oil price volatility on Caltex’s stockpiles, for the three months to March 31 was A$130 million (US$120.17 million), up from A$98 million (US$90.59 million) a year ago. (April 22, 2010)