Caltex Australia Profit Falls 4% on Plant Shutdowns

By Angela Macdonald-Smith

Aug. 22 (Bloomberg) -- Caltex Australia Ltd., the nation's biggest oil refiner, said first-half profit fell 4 percent as unplanned plant maintenance cut returns and margins on processing crude weakened.

Net income dropped to A$354 million ($311 million) in the six months ended June 30, from A$368 million, a year earlier, Sydney-based Caltex said today in a statement. Operating profit excluding the effect of changes in oil prices on the value of stockpiles fell 33 percent to A$196 million from A$294 million, it said. That beat the company's June forecast.

Shutdowns at Caltex's two refineries in Queensland and New South Wales states in the first half reduced production of gasoline, diesel and jet fuel by 13 percent and crimped average operating rates. A gain in the Australian dollar cut margins from refining crude in local currency terms by 16 percent.

``Refiner margins are expected to be volatile, but remain robust overall,'' Caltex Australia Managing Director Des King said in the statement, sent to the Australian stock exchange. ``Continued strength in diesel and jet fuel margins will likely compensate for the expected weakening in petrol demand.''

Caltex Australia, half-owned by Chevron Corp., rose as much as 33 cents, or 2.8 percent to A$12.08 in Sydney and traded at A$12.01 at 10:10 a.m.

Sales gained 34 percent to A$12.1 billion. Caltex declared an interim dividend of 36 cents a share.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net