Caltex boosts profit after fuel chain integration

Australia's leading fuel supplier and retailer Caltex has announced a 2015 half-year profit of $251 million after tax on a replacement cost of sales operating profit (RCOP) basis, and on the back of a strategic process of value chain integration.

According to the company, the change in their business model towards an integrated fuel supply chain has optimized their operations, and enabled them to maintain their position of leadership in Australia´s fuel transportations market.

The new strategy has delivered positive results with Caltex´s after tax profit, on a historic profit basis, reaching $350 million on the first half of the year – a considerable increase from the $163 million in 2014.

A $95 million inventory gain and a $29 million offload of surplus assets in West Australia have contributed to the company´s positive results.

Competition has hardened in the retailing market after the entry of operators like Trafigura, Glencore and Vitol. "There is a new game in town but I think we've done extremely well adjusting to it," said chief executive Julian Segal. "We are defending our position and winning new business."