Aussie dollar surge to negatively impact Caltex profit
Caltex Australia (ASX: CTX) says it expects that the volatility in exchange rate will hit its full year profit for 2010.
On average the Australian dollar was higher during the period, compared with the same period in 2009. This is anticipated to have in the order of a $65 million negative impact on the Caltex Refiner Margin after tax when compared with 2009, the refiner and fuel marketer said in a statement on Thursday.
"However, USD Singapore refiner margins have been stronger than expected due to the weakness in the Tapis benchmark crude price relative to other crudes, particularly during 1H10."
"While the Caltex refiner margin has been seasonally weaker in the second half of the year, this margin has recovered from the bottom of the cycle in the second half of 2009."
"After taking into account the impact of the foreign exchange hedging, the rising Australian dollar in the second half of 2010 has offset the realised losses on US dollar payables from the first half of 2010," Caltex said."
Lift in FY profit
Caltex said it is anticipating an after tax profit in the range of $300 - $310 million on a replacement cost of sales operating profit (RCOP) basis for the full year 2010, excluding the impact of significant items of approximately $15 million after tax.
According to the company, its marketing has continued on its strong growth trajectory. Record sales volumes for transport fuels, particularly premium fuels, and finished lubricant sales volumes have been achieved year to date.
Refinery reliability has continued to improve, it said.
"Production volumes declined in the first half of 2010 due to higher planned maintenance across refining compared to 2009, but production has improved to near record levels in the second half. "
"Production of petrol, diesel and jet fuel is likely to be in the order of 9.8 billion litres."
Net debt at 31 December 2010 is forecast to be approximately $500 million, compared with $487 million in 2009.
By 1004 AEDT, shares in Caltex lifted 11 cents, or 0.78 per cent, to $14.25.