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Caltex reported a full year net profit of $215.2 million compared with a net loss of $186.1 million for 2001. Revenue was $5.9 billion, up by 20.5% on the previous year.
The company said although higher oil prices and better refiner margins contributed to the near 200% turnaround, the result was driven by consistent refinery reliability, higher sales, stable marketing margins as well as reductions in operational costs and debt.
Caltex managing director, Jeet Bindra, said the result was proof that the company is regaining its financial strength and the aim now was to regain its BBB+ credit rating. "In line with this, the company is committed to achieving a debt level of $900 million by the end of 2003," Mr Bindra said.
Despite the good result, Mr Bindra said the company faces a large capital investment necessary to meet the 2006 clean fuel standards and said the outlook for 2003 is "clouded" from mid-year by uncertainties in the Middle East. As a result, the company decided it was premature to pay a dividend at this stage.
Caltex saw its share price drop by 6c to be trading at $2.09.
Chart courtesy MDSNews.com
