Caltex Australia considers buying oil refineries

"It could be of interest," Segal said after the company's annual meeting in Sydney. "It's always a matter of value. What is it that we have to pay and what does it offer shareholders?"

Australia's largest oil refiner still views the Mobil-branded stations as a "good acquisition" after regulators opposed the A$300 million deal in December on concern it may push prices higher, Segal said. Caltex plans to announce "soon" how it will respond to the Australian Competition and Consumer Commission, he added.

Profits from turning crude into fuels declined as the worst economic downturn since the Great Depression cut global demand. Royal Dutch Shell and ExxonMobil are among companies that decided to close or sell refineries to stem losses. Growth in refining capacity is adding to downward pressure on margins, Caltex said.

Earnings from oil processing are set to remain weak this year, Segal said. Even so, the refiner's "medium to long-term outlook" remains positive because of projected demand from Australia's mining and transportation industries, Caltex said in a stock exchange filing.

"It's a situation of imbalance," Segal said. "There's too much supply and too little demand. The issue is how long before demand is going to grow and put supply and demand into balance. I believe it's not going to happen this financial year."

While Caltex would examine potential refining acquisitions, the company may also diversify into industries such as liquefied natural gas, Segal has said this year.