CALTEX ‘HOLDING ITS OWN’ AT PUMP
EARNINGS at
Caltex service stations have been trimmed by higher crude prices and increased competition but chief executive Julian Segal says the company is still holding its own at the bowser.
Caltex Australia announced a first quarter net profit of $94 million ahead of its annual general meeting yesterday – a 42.7 per cent drop from the previous corresponding period.
Mr Segal said earnings were also affected by an outage at its Lytton refinery and a revised fuel supply contract with Euro Garage, formerly Woolworth’s.
“Retail fuel market conditions last month have been encouraging and the business performed well over April in terms of volume, however the market remains competitive,” Mr Segal said, adding that shop earnings were in line with the prior year on a seasonally adjusted basis. “Our retail fuel business has regained market share over the last six months and fuel market share remains stable year-onyear.”
Unaudited earnings before interest and taxes for Caltex’s convenience retail stores in the three months to March 31 was $40 million compared to $90 million in the previous corresponding period.
“While the first quarter was challenging for refiner margins in the region, margins recovered in March and April from earlier lows,” Mr Segal (above) told shareholders.
The board’s remuneration report was supported by more than 95 per cent of investors .