Caltex (CTX) is Australia’s leading transport fuel supplier and convenience retailer and the only integrated oil refining and marketing company listed on the ASX.

Under its Refining and Supply business, CTX operates two major refineries, at Kurnell in Sydney, and Lytton in Brisbane. In 2014, Lytton will be the only refinery following the planned transformation of Kurnell into purely an import terminal.

The Marketing business sees CTX sell through its retail arm petroleum, motor oil lubricants, diesel and jet fuel. CTX also operates convenience stores, fast food stores and service stations throughout Australia.

Currency Slams Profit

Outlook

CTX has been a significant casualty of the collapse in the Aussie dollar. The company has been forced to pay more for its crude, hurting overall profitability.

Moreover, it said that refining margins were likely to come under pressure in the 2H13 amid increased competitive pressures and comparatively weaker demand growth.

The loss of premium petrol sales in Sydney, along with expectations of weak regular petrol sales growth due to aggressive price competition from Coles Express, is also expected to hurt the downstream business.

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