Caltex first-quarter profit falls

MD tells shareholders of slip in profit at group's annual general meeting.

Caltex Australia (CTX) has posted an unaudited 36% fall in first quarter profit after tax on a statutory basis, managing director Julian Segal told shareholders at the group's annual general meeting.

Profit fell to $121 million including an inventory gain of $25m after tax in the first quarter, compared with $190m including an inventory gain of $46m in first-quarter 2013.

The fuel company said the industry is going through a significant period of change and it expects external factors such as the exchange rate to affect its refining and supply division.

The marketing outlook for the rest of the year is positive, while lower volatility in future earnings and cash flows is expected as the group reduces its exposure to refining, Mr Segal said. 

Caltex continues to optimise its supply chain, invest in information systems, ramp up its Singapore operations, improve margins and operations at its Lytton refinery and implement a "fit-for-purpose organisational structure", he said.