Revenue from ordinary activities rose 31% to $9.97 billion in the first six months of this year.

Replacement cost operating profit, which adjust for changes in oil prices, rose 13% to $175 million during the period.

Caltex managing director Des King, who took on the role on May 1, said the profit had been achieved as a result of strong refiner margins even after the company counted the cost of delays to the recently-completed clean fuels project.

“The prices of petroleum products increased substantially in the first half of 2006 compared with the first half of 2005, mainly as a result of the large increase in crude oil prices which increased Singapore product prices,” King said.

The company said it made a profit of about 1.8c per litre on all petroleum products sold, compared to 1.7c/litre in the previous corresponding period.

Rising demand in Asia would keep refining margins robust in the coming months, according to Caltex.

The company also warned that the price volatility experienced over the past year was expected to continue.

A project team is examining opportunities to expand refining operations to process a broader range of crude oils, meet the strong increase in demand for diesel with an increase in production capacity and boost the use of biofuels, Caltex said.

The project team will work to develop the strategy for the next 12-18 months.

The board declared an interim dividend of 32c per share for the six months ended June 30, up from 15c/share in the first half of 2005.