Caltex Australia Ltd (ASX:CTX), Australia’s only listed oil refiner, today announced an after tax profit of $318 million on a replacement cost of sales operating profit (RCOP) basis for the 2010 full year, excluding the impact of significant items of approximately $16 million after tax.

The higher Australian currency has impacted refining profitability, the company said on Monday. On average the Australian dollar was higher during the period (91.96 cents), compared with the same period in 2009 (79.14 cents). This had the effect of eroding the Australian dollar Caltex Refiner Margin by $94 million before tax when compared with 2009.

From 1 July 2010, Caltex introduced a foreign exchange hedging program to dampen volatility in the gains and losses experienced on the crude and product payables. After taking into account the impact of the foreign exchange hedging, the rising Australian dollar in the second half of 2010 has more than offset the realised losses on US dollar payables from the first half of 2010.

Meanwhile, the recent floods in Queensland and New South Wales have had a minimal impact on Caltex’s retail and direct sales business.

“Production has returned to normal post the unplanned shutdown at Lytton Refinery as a result of the heavy rains in early January. As previously advised, the financial impact of the unplanned shutdown of the refinery is expected to be in the order of $5 - $10 million (after tax) in 2011,” the company said.

On a historical cost profit basis (including inventory gains/losses), Caltex recorded an after tax profit of $317 million for 2010 (including significant items), compared with $314 million for 2009.

At 1044AEDT, Caltex shares lifted 39 cents, or 2.75 per cent, at $14.71.