October 24, 2008

Caltex Reports Slump in H1 After-Tax Profits

Caltex Australia, engaged in refining, distribution and marketing of petroleum products, has reported an after-tax profit of A$196 million on a replacement cost of sales operating profit basis for the first half of 2008, compared with A$294 million for the same period of 2007.

The company's reported net profit after-tax, including inventory gains and excluding significant items was A$354 million for the first half of 2008, compared to A$368 million for the same period of 2007.

Des King, managing director of Caltex, said that the company had benefited from its strategy of growing its marketing business and its long-term focus on debt management and cost control. This has reportedly helped offset lower refinery production as a result of both planned and unplanned maintenance, and the impact of the stronger Australian dollar and higher crude oil price on refiner margins.

Mr King said: "Caltex recognized early in 2008 the possible negative impact of rising crude oil prices and reduced petrol demand caused by the US economic slowdown and took measures to respond to these challenges."