Caltex to report $140m half year profit

Refiner and fuel marketer Caltex Australia Ltd says its net profit for the first
half of calendar 2010 will be about half that of the same period last year, due
largely to the effect of the stronger Australian dollar eroding refiner margins.
It says it expects first half profit of between $140 million and $160 million,
excluding significant items and is premised on an exchange rate of between 84 and 87
US cents.
This compares with $298 million in the first half of 2009 on a replacement cost of
sales operating profit (RCOP), Caltex said in a statement on Thursday.
"Singapore refiner margins were stronger than expected due to the weakness in the
Tapis crude price relative to other crudes," Caltex said in the statement.
"However, the higher average Australian dollar during the period compared with the
same period in 2009 negatively impacted the Caltex refiner margin.
"In addition, the recent fall in the Australian dollar negatively impacted RCOP NPAT
(net profit after tax) due to a realised loss on US dollar payables."
Production volumes of petrol, diesel and jet fuel declined in the first half of 2010
to about 4.4 billion litres, due to higher planned maintenance at its two
refineries, in Sydney and Brisbane.
Demand for diesel, jet and premium grew strongly compared to 2009.
Recent restructures in corporate and marketing had resulted in savings of $8 million
for the year to date, it said.