Caltex's profits are up as it becomes more a fuel supplier than an oil refiner

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Caltex Australia has lifted half year profit by 45% to $251 million to the end of June as it switches to becoming a fuel supply business,.

The company’s Lytton refinery in Brisbane contributed earnings of about $154 million compared to $40 million for the first half of 2014. Caltex closed Sydney’s Kurnell refinery late last year and established a centre in Singapore to source refined products.

Australian refiners have been hit by a 50% cut in global oil prices since the middle of 2014.

“With the closure of the Kurnell refinery and the establishment of Ampol Singapore to source our crude and refined product, our business model has changed,” the company said in a market update.

“We have evolved to be an integrated transport fuel supply chain business, optimising the entire value chain from product sourcing to the customer. Ampol Singapore is now the largest source of refined product to supply our customers.”

The company said it’s maintaining its position as the outright leader in transport fuel across Australia despite a challenging environment.

Audited results are due next month.

Caltex shares are 0.93% weaker today to $33.06, down from a high of $38.81 in March.

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