approximately$95 million of pre-tax inventory gain
http://www.theaustralian.news.com.au/common/story_page/0,5744,4466853%5E462,00.html --------------------------------------------------------------------- Caltex pumped on profit --------------------------------------------------------------------- June 07, 2002 --------------------------------------------------------------------- SHARES in Caltex Australia, the nation's only listed oil refiner, jumped 12 per cent today after it said it expected to make an after tax half-year profit of between $125 million to $140 million thanks to stable margins and higher crude prices. --------------------------------------------------------------------- The downstream operator said that consistent refinery reliability and safety performance had also contributed to the bottom line result, which includes approximately $95 million of pre-tax inventory gains. --------------------------------------------------------------------- "So replacement cost profit after income tax is expected to be within a range of $60 million to $75 million compared with $4.5 million for the corresponding period last year." --------------------------------------------------------------------- However, the company warned that the profit ranges may be affected by movements in crude prices and refiner margins between now and the end of June. --------------------------------------------------------------------- It said competition remains intense in all markets. --------------------------------------------------------------------- Last year Caltex posted a 16.1 per cent lift in its half year net profit to $41.1 million. --------------------------------------------------------------------- Caltex said marketing margins, while reduced from the highs of 2001, were still tracking above levels achieved in 2000 and 1999. --------------------------------------------------------------------- "Since December 2001 crude prices have risen by approximately $US5 a barrel and are expected to remain at current levels for the immediate term." --------------------------------------------------------------------- Refiner margins, which averaged $US1.61 a barrel in 2001, have improved to average $US2.60 a barrel for the year to date, Caltex said. --------------------------------------------------------------------- Meanwhile, Caltex said its board was focused on reducing debt and achieving a strong balance sheet to be able to weather the volatility of profitability inherent in the downstream oil industry. --------------------------------------------------------------------- The company said today it was targeting cutting its gearing ratio to less than 50 per cent by December 31, 2003. --------------------------------------------------------------------- This is up from 61 per cent at end-December, 2001. --------------------------------------------------------------------- In dollar terms this implies lowering debt from almost $1.3 billion at 31 December, 2001 to $1075 million by 31 December, 2002 and to $950 million by 31 December, 2003. --------------------------------------------------------------------- The focus on debt reduction will impact on the ability to pay dividends, the company said. --------------------------------------------------------------------- "The need to conserve cash to achieve the targeted debt reductions will impact on the ability of the company to pay dividends." --------------------------------------------------------------------- "The board will make every effort to balance the objectives of reducing gearing, providing dividends to shareholders and investing in the future of the company." --------------------------------------------------------------------- At 1020 AEST shares in Caltex had jumped 18, or more than 12 per cent to $1.65. ---------------------------------------------------------------------
CTX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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