Caltex Australia’s profit halves on strong Aussie dollar

Caltex Australia Ltd. says it remains optimistic about its future, despite a slump in first-half profit. Caltex reported net profits of A$141.65 million (US$126.18 million) for six months to June 30, down 61% from A$362.59 million (US$322.99 million) in the first half of 2009. It said the profit slump was due to currency volatility and maintenance shut-downs and flagged further job cuts as part of its cost-saving measures. Chief Executive Julian Segal said a stronger Australian dollar had cut into refiner margins early in the first half, with an effect of around A$81 million (US$72.15 million), even though Singapore refiner margins were stronger than expected due to the weakness in the Tapis crude price relative to other crudes. “Caltex is susceptible to huge volatility from external factors and I think the company has demonstrated it can deliver on controllables,” he said. (August 23, 2010)