REPORTING SEASON: Caltex Australia Limited (CTX)

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Figure 1: Caltex Australia Limited 12 month chart


Caltex (CTX) earnings beat expectations while margins are on the improve

 Caltex Australia (CTX) posted a better than expected underlying annual profit of $493m for the 12 months ended 31 December 2014. This result strips out the value of CTX’s crude inventories and was above CTX’s own guidance ($450m-$470m).

 Earnings were driven by a 6% rise in earnings from its core Marketing division and $64m in EBIT from Refining & Supply – which compares to a $171m loss in 2013.

 Total Capital Expenditure (CAPEX) of $503m was below CTX’s guidance ($520m-$585m). Its Kurnell refinery was shut down and terminal operations commenced in October 2014. Approximately $50m in CAPEX will be spent in FY15 as part of its $270m project to convert the Kurnell site into Australia’s largest fuel import terminal.

 CTX has almost tripled its final dividend to $0.50/share which will be paid to eligible investors on 2 April 2015. In the absence of ‘material growth opportunities’, CTX said it may consider additional capital returns.

 Looking ahead, CTX plans on optimising the entire supply chain, growing product sourcing via Ampol Singapore and capturing further margin improvements at its Lytton refinery in Brisbane. No specific financial guidance was provided.


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Steven Daghlian, Market Analyst,