Caltex expecting profit down by 50%
Caltex Australia Limited (CTX) said the strengthening Aussie dollar from last year would take a bite out of the company’s profits for the six months to 30 June 2010. The oil refiner said it was expecting, on a replacement cost of sales operating profit (RCOP) basis and not including significant items, would be between $140 million and $160 million, down around 50% from last year.
”The difference between 2009 and 2010 is largely attributable to exchange rate volatility,” the company said, noting that the most recent forecast was based on an AUD/USD exchange rate of between 84c and 87c.
Caltex said that Singapore refiner margins were stronger than expected due to the weakness in the Tapis crude price relative to other crudes.
"However, the higher average Australian dollar during the period, compared with the same period in 2009, negatively impacted the Caltex Refiner Margin," the company added.
From a production stand point, petrol, diesel and jet fuel production was expected to be in the vicinity of 4.4 billion litres for the six months to 30 June, down from 5.1 billion litres in the previous corresponding period.
At the close Thursday, Caltex shares were trading at $10.35.
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