Caltex profit jumps 50pc

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Caltex profit jumps 50pc

AAP

June 26, 2009 10:02am



CALTEX Australia's first-half profit may rise as much as 50 per cent as the country's biggest oil refiner benefited from higher margins on lower crude prices, and exchange rates.

Caltex's after tax profit for the six months ended June 30 would be between $270 million and $295 million, compared with the $196 million profit for the year before, the Sydney-based refiner said in a statement today.

The after tax number is based on the replacement cost of sales operating profit (RCOP), which smooths out fluctuations in the oil price to give a clearer picture of the company's performance.

Caltex, which is 50 per cent owned by US oil giant Chevron Corp, said its average margin for the five months to May this year was 8.98 cents per litre, compared with 6.08 cents during the corresponding period last year.

The significant decline in Singapore based Tapis crude oil prices and the lower average Australian dollar translated to the higher margin.

On a historic cost result after tax, which includes inventory gains, Caltex said it expects a first-half profit between $335 million and $365 million, compared with $354 million the year before.