REPORTING SEASON: Caltex Australia Limited (CTX)
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Figure 1: Caltex Australia Limited 12 month chart
Caltex Limited (CTX): Business transformation underway, Kurnell to close.
· Energy producer, Caltex (CTX) reported a small increase in first half profit to $173Million as a reported loss in its refining and supply division offset a gain in marketing and distribution.
· The result was in line with market expectations as the numbers were very similar to Caltex’s resent guidance of 155 – $175Million. Caltex’s marketing and distribution earnings (EBIT) grew by 8% to $393Million
· Refining & Supply result (RCOP EBIT loss of $65Million) was impacted by lower Caltex Refiner Margin (CRM) and operating inefficiencies at Kurnell on the back of the changes from being a total solutions oil refinery to just a fuel import terminal. The growth at its revamped Lytton refinery (Brisbane) could not offset Kurnell’s losses. The conversion of CTX’s Kurnell refinery is on time and on budget with closure expected to commence in October 2014.
· With the company-wide cost and efficiency review underway, Caltex told the market today it will be reducing its headcount by approximately 350 people.
· CTX will pay an interim dividend of $0.20 to shareholders on the 1st of October 2014.