Dollar valuation, pipeline outage to affect profit, says Caltex

Dollar valuation, pipeline outage to affect profit, says CaltexOil refiner and distributor, Caltex has said that its profit for the first half of the year was affected by the low value of the Australian dollar and a recent pipeline outage.

The come expects its net profit to be between $160 million and $175 million during the six months to June 30, which is lower than $197 million recorded during the same period of the previous year. The profit forecast from the company is based on the replacement cost that does not include effects of changes in the world oil price and shows company's performance.

The company's pre-tax earnings have fallen by about $5 million as the Australian dollar has fallen by 104 US cents to 93 US cents during the previous six weeks and the prices are not being immediately transferred to the customers. On the other hand, a lower Australian dollar will be more favourable to Caltex's refinery business during the long term as it would improve the difference between difference in price between crude oil and the products.

The company also said that the sales of regular petrol have fallen during the first half of calendar 2013.