Caltex returns from full year loss
Market watch top headlines
Caltex Australia has returned to profitability as its refining businesses showed the results of recent structural changes.
The fuel marketer and refiner made a net profit of $149 million in the year to December 31, on a replacement cost basis, which excludes the effect of changes in the world oil price.
That compares to a $852 million loss in the previous year, in which Caltex took more than $1 billion in writedowns on its Kurnell refinery in Sydney, which it is closing.
Chief executive Julian Segal said the improved result reflected growth in Caltex's marketing business and improved refinery production.
Changes to the configuration of the company's Lytton refinery in Brisbane delivered higher production and earnings, he said.
The Kurnell facility just broke even, when excluding the costs of its planned closure.
The plant's poor competitive position restricts its ability to generate acceptable returns, and its closure remains on track to be completed towards the end of 2014, Caltex said.