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Business Description: Caltex Australia Limited (CTX) is a transport fuel supplier, convenience retailer and an integrated oil refining and marketing company. It operates two major refineries at Kurnell in Sydney and Lytton in Brisbane. The company also operates with a myriad of subsidiaries; Caltex Australia Custodians, Caltex Australia Petroleum, Caltex Fuel Services, Petroleum Services, Hunter Pipe Line Company, B&S Distributors and Jet Fuels Petroleum Distributors.
Strategy Analysis: CTX strategy is based on lifting refinery utilisation rates so it can take full advantage of excess demand for refined product in Australia. Refiner margins can be volatile but high refinery utilisation rates and strong marketing activities are important in driving operating cash flow and earnings. This allows for the reduction of debt levels and improving the return on equity and the return to shareholders. The alliance with Woolworths underpins volume growth. The CEO aims to lift CTX into the top quartile in terms of total shareholder return and to eliminate earnings volatility - a very big task.
Caltex Australia reported NPAT of $57.6m for the year ended 31 December 2012. This includes significant items of approximately $309.0m (after tax), which primarily relates to provisions in respect of the closure of the Kurnell refinery. This compares favourably to the 2011 after tax loss of $713.22m, which included significant items of $1.12bn (after tax) relating to the refinery impairment. The 2012 result includes product and crude oil inventory losses of $92.0m after tax, compared with an inventory gain of $138.0m after tax in 2011. Revenues from ordinary activities were $23.26bn, up 5% from last year. Basic and Diluted EPS was 21.0 cents compared to (264.3) cents last year. Net operating cash flow was $399.74m compared to $446.4m last year. The final dividend declared was 23.0 cents, taking the full year dividend to 40.0 cents compared with 45.0 cents last year.
Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 |
‚ÄúIf you want to have a better performance than the crowd, you must do things differently from the crowd.‚ÄĚ Sir John Templeton.
Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 |
Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.
Carl Richards, director of investor education at the BAM Alliance 17/10/2014 |
‚ÄúAs odd as it may sound, the sooner you start treating your investments like you treat life, the happier you‚Äôll be with the outcome.‚ÄĚ
William H. Gross, Janus Capital Group 16/10/2014 |
‚ÄúFinancial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding ‚Äúminus‚ÄĚ 10 basis points.‚ÄĚ
CMC Markets 8/10/2014 |
Share market indices around the globe are breaking down. While analysts cast around for reasons, it‚Äôs clear that a time factor is in play. Simply put, many investors ‚Äúfeel‚ÄĚ a correction is overdue. How low could it go?
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