Caltex Australia reinstates dividends

Caltex Australia Ltd. reinstated its dividend payout after annual earnings rose by 9%, but the oil refiner remains cautious on its outlook as it continues to navigate tough trading conditions. The company declared a payout of 25 cents per share, as net operating profits rose to A$203 million (US$183.67 million) from A$186 million (US$168.29 million). Caltex Chief Executive Julian Segal said the size of the payout takes into account the uncertain outlook for refinery markets, the need for Caltex to invest in its fuel marketing operation to diversify its business mix and the potential for more acquisitions, including the proposed ExxonMobil deal. While regional refiner margins have picked up substantially in the first two months of the year, Segal said the market is volatile. (February 22, 2010)