Caltex Australia Limited

CTX Details

2017 Half year profit guidance: On an HCOP (Historic Cost Profit) basis, the after-tax profit is expected to be within a range of $250 million and $270 million for the 2017 half year including significant items. Significant items are forecasted to be a loss of approximately $5 million before tax (representing the previously disclosed $20 million franchise employee assistance fund less the profit on the sale of the company's fuel oil business) against profit of $318 million for H1FY16. The forecast 2017 half year result includes a product and crude oil inventory loss of approximately $40 million after tax against the product & crude oil inventory gain of $64 million after tax in H1FY16. However, on a RCOP (Replacement Cost Operating Profit) basis, the after-tax profit for the 2017 half year is anticipated to be in the range of $290million and $310 million, excluding significant items against an after-tax profit of $254 million for H1FY16.


H1FY17 guidance; (Source: Company reports)

Supply & Marketing segment is expected to deliver an EBIT result of between $360 million and $375 million for the 2017 half year. This result includes net unfavorable externalities of approximately $5 million (foreign exchange impact and price timing lags). Excluding these externalities, the underlying Supply & Marketing EBIT of between $365 million and $380 million is up around 4% compared to $359 million in H1FY16. Total transport fuels sales volumes of 7.7 billion liters are expected to be marginally higher than for the same period in 2016. Growth continues across the basket of premium fuels with premium diesel growth more than offsetting a forecast modest decline in premium petrol volumes. Total retail volumes are forecast to be around 4.3 billion liters, broadly in line with the first half of 2016. Further, the Lytton refinery is expected to contribute an EBIT of approximately $150 million in H1FY17 compared to the EBIT of $92 million for H1FY16.  Moreover, for the first five months of 2017, the average realized Caltex Refiner Margin stood at US$12.39 per barrel against US$10.10 per barrel in H1FY16. We give a “Hold” rating on the stock at the current market price of $ 31.11


CTX Daily chart; (Source: Thomson Reuters)

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