Caltex Australia Announces Its Full Year Results And An Off-Market Buy-Back

  • Feb 26, 2019 AEDT
  • Team Kalkine
Caltex Australia Announces Its Full Year Results And An Off-Market Buy-Back

Caltex (ASX: CTX) has announced its financial results for the 12 months ending 31 December 2018. For the full year 2018, the company has reported Replacement Cost Operating Profit (RCOP) NPAT of $558 million which is above the guidance range of $533 Mn -$553 Mn provided on 18 December 2018.

The company’s Fuels & Infrastructure business delivered an EBIT of $570 million which was within the guidance range of $560- 580 million provided in December. This result includes unfavourable externalities of $16 million, comprising a net realized loss (after hedging) on foreign exchange.

During the year, the total Fuels & Infrastructure fuel sales volumes increased by 7% to 20.4BL, underpinned by a 39% increase in international sales volumes to 3.5BL. The increase in the fuel sales volume was driven by the growth in Ampol activity, a full period of contribution from Gull NZ, the commencement of managing supply on behalf of Seaoil and increasing international third-party sales.

The company’s Convenience Retail delivered an EBIT of $307 million which is above the guidance of $295-305 million provided in December. As per the company’s announcement, the Company has made excellent progress in the transition of stores to Company operations, with a total of 516 stores now operated by the Company, compared with 316 at the beginning of the year. Convenience Retail EBIT was 8% lower than the prior year, including a ~$20 million impacts from the on-going transition of stores to Company operations.

As of 31 December 2018, the company had a Net debt of $955 million which represents a gearing ratio of 22% (net debt / net debt plus equity).

The Company’s Board has declared a fully franked dividend of 61 cents per share for 2H 2018, which represents a payout of 61% of the 2H 2018 RCOP NPAT, following the increased payout range announced in October.

On 26 February 2019, the company also announced an Off-market Buy-back of approximately $260 million ($1 per share). This Off-market Buy-back is expected to complete in the second quarter of 2019.

The Buy-back will be conducted by way of an Off-market tender process which will open on 18 March 2019 and close at 7.00pm (Sydney time) on Friday, 12 April 2019. The record date for the Buy-back is 4 March 2019.

The company has informed that it is having sufficient franking credits to ensure that the dividend component of the buy-back price is fully franked.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $28.9, up by 4.672% during the day’s trade with a market capitalization of around $7.2 Billion as on 26 February 2019. The stock has provided a year till date return of 9.69% & also posted returns of -17.09%, 1.62% & 3.37% over the past six months, three & one-months period respectively. It had a 52-week high price of $37.020 and touched 52 weeks low of $24.500, with an average volume of ~979,515.


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