Caltex’s strong growth trajectory has continued in 2010 as the company announced an after tax profit of $318 million on a replacement cost of sales operating profit (RCOP) basis, excluding the impact of significant items of approximately $16 million after tax.
Premium fuel sales grew by 55 percent from 1,182 million litres in 2009 to 1,836 million litres in 2010. Although the production volumes declined in the first half of 2010 due to an increased amount of maintenance compared to 2009, production improved to near record levels of 5.5 billion litres in the second half with refinery utilisation in excess of 78 percent.
The production of petrol, diesel and jet fuel for the full year was 9.8 billion litres, in comparison to 10.2 billion litres in 2009. Caltex also achieved its best ever safety result in 2010 with the lost time injury frequency rate decreasing to 1.23 per million hours worked from 2.12 per million hours worked in 2009.
“The Board is pleased to announce it has declared a final dividend of 30 cents per share (fully franked) for 2010, bringing the total dividend payout for 2010 to 60 cents per share (fully franked,” the company stated. “This compares with a total dividend payout of 25 cents per share (fully franked) for 2009.”
Caltex’s net debt at 31 December 2010 was $544 million, compared with $487 million in 2009. On a historical cost profit basis, including inventory gains and losses, Caltex recorded an after tax profit of $317 million for 2010 (including significant items), compared with $314 million for 2009.
As a result, the growth trajectory for is expected to continue in 2011. Yet the recent floods in Queensland and New South Wales have had an impact on Caltex’s retail and direct sales business. Although production has returned to normal post the unplanned shutdown at Lytton Refinery as a result of the heavy rains in early January, the financial impact is expected to be in the order of $5 to $10 million (after tax) in 2011. In the medium to long term, however, the outlook for the company remains positive due to the exposure Caltex has to the mining, agriculture and transport industries in Australia.
IMG_7465.jpeg)
.png){kind=small}
