Caltex's says short-term outlook is positive

Caltex Australia Ltd. said the short-term outlook for the company’s core business remains positive. Julian Segal, Caltex Australia Ltd.’s managing director and CEO, said that the drivers of growth in volumes and earnings are expected to continue throughout the year.”Our core business goes from strength to strength. Our expanding distribution infrastructure continues to allow us to seize growth opportunities,” he said. Segal noted however, that the company faces some challenges with the refining part of its supply chain.”Singapore refiner margins for April have improved, driven by strength in premium gasoline grades, delivering a positive earnings result for refining (in that month),” Segal explained. “We anticipate an improvement in the second-quarter earnings for refining compared to the first quarter, but believe the ongoing strength of the Australian dollar will continue to pressure the Caltex refiner margin in the medium to long term,” he added. (May 16, 2012)