The company recently announced its unaudited 2015 half year profit. Half-year historic cost profit after tax (HCOP) stood at $375 million. Half-year replacement cost operating profit (RCOP) NPAT stood at $251 million. There is a Transformation in business model to an integrated transport fuel supply chain. The business maintains position as outright leader in transport fuels across Australia. Supply and Marketing EBIT stood at approximately $263 million. Lytton refinery EBIT stood at approximately $154 million, reflecting strong first half refiner margins and the impact of the major Turnaround and Inspection program, which occurred during May and June.
Cost Of Sales (Source - Company Reports)
On an historic cost profit basis, the after tax profit is $375 million for the 2015 half year, including a gain relating to significant items of approximately $28 million after tax. This compares with the 2014 half-year profit of $163 million. The 2015 half year result includes a product and crude oil inventory gain of approximately $95 million after tax. This compares with an inventory loss of $10 million after tax in the first half of 2014.
Net Profit After Tax (Source - Company Reports)
The Supply and Marketing segment has delivered an EBIT result of approximately $263 million for the 2015 half year. This result includes a realised loss on US dollar denominated product payables of approximately $16 million (2014 first half: a realised gain of $13 million) and a price timing lag loss of approximately $14 million (2014 first half: a price timing lag gain of $11 million). These impacts reflect the significant volatility in both the Australian dollar and the price of crude oil in the first six months of 2015.
Total sales volumes of transport fuels for the first half of 2015 were 7.8 billion liters, modestly lower than in the same period of 2014, reflecting primarily the impact of the timing of a major supply contract loss and the commencement of a new larger long term supply contract. The company continues to successfully grow sales of premium fuels in Retail across both petrol and diesel, offsetting the decline in unleaded petrol.
.PNG)
Safety Measures (Sources - Company Reports)
Sales from production from the Lytton refinery in the first half totalled 2.4 billion litres, down from 2.8 billion litres in the same period last year. This reduction reflects the impact of the major maintenance program during May and June.
The company seems to be in track to achieve its vision to be the outright leader of transport fuels across Australia. It was with this vision in mind that the company announced its supply chain restructure in 2012. That path has resulted in e successful conversion of the Kurnell refinery into Australia’s largest fuel terminal, increase in investment in distribution infrastructure, and the establishment of a product sourcing capability in Singapore. Each of these elements is key in the transformation of the business into an integrated transport fuels supply chain company.
Net debt at 30 June 2015 was $715 million, compared with $827 million at 30 June 2014. Average debt during the six months to 30 June 2015 was approximately $614 million.
For the 2014 full year, Caltex recorded an after tax profit of $20 million on a statutory, or historic cost of sales operating profit measure, including a loss relating to significant items of approximately
$112 million (after taxes). This compares with the 2013 full year profit of $530 million. The 2014 result includes a product and crude oil inventory loss of $361 million after tax and reflects a significant fall in Brent crude oil prices in the latter months of 2014.
On a replacement cost of sales operating profit (RCOP) basis, which is the preferred measure, as it excludes net inventory gains and losses, Caltex recorded an after tax profit for the 2014 full year of $493 million, excluding significant items. This compares with an RCOP after tax profit of $332 million for the 2013 full year, excluding significant items.
Driving sales of premium fuels (including Vortex Diesel), remains a focus for Marketing. Higher sales of premium grades of petrol and diesel, and jet fuel, continue to offset the long-term decline in demand for unleaded petrol, including E10. Continued investment in growth, including new retail service stations and diesel stops and the refurbishment of existing service stations, underpinned the increased penetration of premium Vortex products. Recent acquisitions, such as the Queensland Fuel Group in 2013 and the Scott’s Fuel Divisions, which was completed in June 2014, also contributed to the strong Marketing result
The company is currently trading at a stock price of $33.52. The company has a market capitalization of 9.16 billion and 270 million shares of the company are currently trading in the market. The company is currently trading at a Price to earnings ratio of 458.510 and a dividend yield of 2.06%.
Although the growth prospects of the company are impressive, given the very high Price to Earnings ratio of the company; we believe that the stock is expensive at the current price of $33.52.
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