Caltex (CTX) expects refining margins in the medium to longer term will be challenged as regional capacity is forecast to outstrip demand, though a weaker Australian dollar is likely to favourably impact margins.
The group made the comments as it released a lift in first-half profit.
In the six months to June 30, Caltex posted a net profit of $195.5 million, a lift on the $167.3 million recorded in the previous corresponding period and at the upper end of the company's forecast for between $180 million and $200 million.
In the same period revenue was $11.495 billion, a 3% decline on the $11.794 recorded in the previous corresponding half.
The group will pay a fully-franked interim dividend of 17 cents.