CANBERRA: Caltex Australia is poised for a record full-year earnings thanks to higher returns on both refining and marketing, fanning accusations the fuel supply industry is profiting at the expense of motorists.
The stock surged 6 per cent to $36.50, its highest close since March, after Caltex said benchmark net profit excluding one-time items for calendar 2015 was set to rise to between $615 million and $635 million, as much as 29 per cent higher than last year’s $493 million.
It said strong refining margins, reliable refinery operations and an increase in marketing profits all contributed to the improved result.
Bottom line net profit, a figure less watched by the market because it includes changes in the value of oil and fuel stockpiles, should be between $560 million and $580 million, up to 29 times on the $20 million reported in 2014, Caltex said.
The record outlook comes just two days after the Australian Competition and Consumer Commission (ACCC) took petrol retailers to task for enjoying their highest margins on retail petrol and diesel sales since price monitoring started in 2002. The watchdog said retail prices had not followed crude oil prices lower to the same extent, leading to higher profits for the petrol companies at the expense of motorists.
The findings led to claims of “price-gouging” by petrol retailers, accusations rejected by the industry through the Australasian Convenience and Petroleum Marketers Association.
ACAPMA chief executive Mark McKenzie said some of the “apparent hysteria” surrounding the ACCC report was unjustified and failed to acknowledge that gross profit margins vary markedly, with some fuel retailers receiving an average of just 3¢ per litre.
