Skip to Content

Saturday, September 21st, 2019

Caltex Australia : Refiner Margin Update (March 2017)

Closed
by April 30, 2017 General


ASX RELEASE

1 May 2017


CALTEX REFINER MARGIN UPDATE (MARCH 2017)

Caltex advises its realised lagged1 Caltex Refiner Margin (CRM2), in respect of CRM sales from production for the month of March 2017.

March 2017

February 2017

March 2016

Unlagged CRM

US$11.26/bbl

US$12.54/bbl

US$10.58/bbl

Impact of pricing lag positive/(negative)

US$0.39/bbl

US$0.17/bbl

US($0.84)/bbl

Realised CRM

US$11.65/bbl

US$12.71/bbl

US$9.74/bbl

CRM Sales from production

534 ML

425 ML

514ML

The March unlagged CRM was US$11.26/bbl. This is below the prior month (February 2017: US$12.54/bbl) but above the prior year monthly comparative (US$10.58/bbl).

The unlagged Caltex Singapore Weighted Average Margin was US$12.04/bbl, which is below the prior month (February 2017: US$13.40/bbl) but above the prior year (March 2016: US$11.26/bbl).

Lower Brent crude oil prices in the last week of March drove a favourable US$0.39/bbl pricing lag (February favourable pricing lag: US$0.17/bbl).

The March 2017 realised CRM was US$11.65/bbl including the pricing lag. This is below the February 2017 CRM of US$12.71/bbl, but above prior year comparative (March 2016: US$9.74/bbl).

Sales from production in March 2017 of 534 ML were above the prior month (February 2017: 425 ML) and prior year comparative (March 2016: 514 ML).

For the three months to 31 March 2017, the average realised CRM was US$12.23/bbl (2016 US$10.65/bbl) with CRM sales from production totalling 1,460 ML (2016: 1,443 ML).

Period ended 31 March

2017

2016

Realised CRM

US$12.23/bbl

US$10.65/bbl

Unlagged CRM

US$11.91/bbl

US$10.65/bbl

CRM Sales from production

1,460 ML

1,443 ML


Notes

  1. A fall in the Australian dollar crude price, particularly at the latter end of the month, produces a positive lag effect on the CRM (i.e. increases the CRM) and, conversely, in the event of a rise in the Australian dollar crude price, a negative lag effect occurs (i.e. reduces the CRM).

  2. CRM represents the difference between the cost of importing a standard Caltex basket of products to eastern Australia and the cost of importing the crude oil required to make that product basket.

    The CRM is calculated in the following manner:

    Weighted Singapore product prices (for a standard Caltex basket of products)

    Less: Reference crude price (the Caltex reference crude marker is Dated Brent) Equals: Singapore Weighted Average Margin (Dated Brent basis)

    Plus: Product quality premium Crude discount

    Product freight Less: Crude premium

    Crude freight Yield Loss

    Equals: Caltex Refiner Margin

    The Caltex Refiner Margin is converted to an Australian dollar basis using the prevailing average monthly exchange rate.

    CRM is just one contributor to the replacement cost of sales operating profit (RCOP) EBIT earnings (excluding significant items). Other items contributing to the RCOP EBIT include Transport Fuels volume and margin, Lubricants and Specialties volume and margin, Non-Fuel Income and Other Margin less Operating Expenses.

  3. RCOP excludes the unintended impact of the fall or rise in oil and product prices (a key external factor) and presents a clearer picture of the company’s underlying business performance. It is calculated by restating the cost of sales using the replacement cost of goods sold rather than the historic cost, including the effect of contract based revenue lags.


Caltex Australia

A proud and iconic Australian company, Caltex has grown to become the nation’s leading transport fuel supplier, with a vast network of approximately 1,900 company-owned, franchised or affiliated sites. Caltex aims to be the market leader in complex supply chains and the evolving convenience marketplace, by delivering the fuel and other everyday needs of its diverse customers through its networks. With a history tracing back to 1900, Caltex has safely and reliably fuelled the needs of Australian motorists and businesses for more than a century. It operates as a refiner, importer and marketer of fuels and lubricants. It is listed as CTX on the Australian Securities Exchange.

For more information visit www.caltex.com.au

INVESTOR CONTACT

MEDIA CONTACT

Rohan Gallagher

Sally Oelerich

Head of Investor Relations

Head of Corporate Communications and Media

+61 2 9250 5247

+61 2 9250 5094

+61 421 051 416

+61 400 886 546

[email protected]

[email protected]

Caltex Australia Limited published this content on 30 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 April 2017 23:05:16 UTC.

Previous
Next