PROFIT JUMP FOR CALTEX
CALTEX Australia has forecast an increase in first- half replacement cost operating profit on the back of a jump in earnings from its Lytton refinery in Brisbane.
The fuel refiner and retailer expects halfyear net profit to be squeezed to between $ 250 and $ 270 million following a crude oil inventory loss and expenses associated with a franchise employee assistance fund.
However, its more closely watched RCOP, which strips out the impact of crude oil price fluctuations on inventory, is expected to rise to between $ 290 and $ 310 million.
The company reported a RCOP of $ 254 million in the first half of 2016. Most of the gains will come from its Lytton plant — its only remaining refinery — where earnings are expected to rise to $ 150 million, compared to $ 92 million a year earlier.
While its sales volume remained largely flat at three billion litres, the refiner margins averaged $ US12.39 a barrel over the first five months of the year, compared to $ US10.10 a barrel a year earlier, the company said yesterday.
Underlying earnings from its supply and marketing business, or retail operations, are expected to rise to between $ 365 and $ 380 million, up 4 per cent on the $ 359 million it recorded a year ago.
Total transport fuels sales of 7.7 billion litres were expected to be marginally higher than for the same period in 2016, Caltex said.