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Caltex Australia says petrol prices reflect costs as oil slump hits earnings

Published 23/08/2016, 02:29 pm
© Reuters.  Caltex Australia says petrol prices reflect costs as oil slump hits earnings
Caltex Australia Limited
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SYDNEY, Aug 23 (Reuters) - Caltex Australia Ltd CTX.AX on Tuesday said the cost of running its petrol stations is reflected in its fuel prices, after Australia's competition regulator said decade-high charges nationwide belied a slump in oil prices.

"If you look at the money we invest to build and maintain the network, you will find out the competition is very intense," Chief Executive Julian Segal said after Caltex Australia booked a 15 percent fall in half-year net profit, at A$318 million ($242.7 million). Monday, the Australian Competition and Consumer Commission said average petrol prices in fiscal year 2016 were the lowest since 2002.

But gross retail margins were at their highest, indicating the full benefits of lower international crude oil and refined petrol prices were not being passed on to motorists, the government agency said.

A rise in motorists buying premium fuels partially offset a decline in unleaded petrol sales, said Caltex Australia, which operates over 1,800 stations.

"The reality is the price is changing by the minute and you need to take into account the costs associated with operating sites," Segal said.

A 12 percent decline in first-half revenue to A$8.7 billion was mostly due to lower crude oil prices, Caltex said. ($1 = 1.3103 Australian dollars)

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