Caltex Australia Limited (CTX) said net profit fell 33% for the first half of 2008 to $196 million due to lower production and a stronger Australian dollar. The group expects growth to continue and margins to remain volatile, but robust.
The result was higher than the oil refiner's first half guidance released in June of $175 million to $195 million.
Managing director Des King said the company had benefited somewhat from its strategy of growing its marketing business and its long-term focus on debt management and cost control.
He said the lower costs helped offset lower refinery production as a result of both planned and unplanned maintenance and the impact of the stronger Australian dollar and higher crude oil prices on refiner margins.
"Refiner margins saw exceptionally strong diesel and jet margins due to demand in Asia, and this offset the weaker margins for petrol driven by the US economic slowdown," Mr King said.
"Caltex recognised early in 2008 the possible negative impact of rising crude oil prices and reduced petrol demand caused by the US economic slowdown and took measures to respond to these challenges," Mr King said.
The group said revenue climbed 34% to $12.145 billion in the period.
Mr King explained that growth underpinned by higher transport fuel sales volumes of 7.1 billion litres in the first half of 2008, 16% higher than the first half of 2007.
The group reported diesel sales volumes were 12.8% higher than for the first six months of last year, well above industry growth.
Premium petrol sales volumes increased 6.% and jet fuel sales were up 10.2%.
Mr King said Caltex also continued to offer biofuels to customers.
"The company now has over 320 sites in Queensland, NSW and the ACT selling Bio E10 Unleaded petrol which is blended with 10% ethanol and/or New Generation Diesel with 2% biodiesel," he said.
"The Australian market for transport fuels and convenience retailing will continue to grow and Caltex is well positioned to capture future market opportunities," he said.
The board has declared an interim dividend of $97.2 million or 36c per share fully franked, down 23% on last year.
At 1041 AEST, Caltex was up 28c to $12.03.