MENU

Caltex Australia Limited shares fall from 52-week high

Shares in transport fuel supplier Caltex Australia Limited (ASX: CTX) hit a 52-week high on the eve of its full-year results announcement on February 27 at $36.42 at the close.

But Caltex Australia share prices have dropped 2.5% to $35.48 at the time of writing after results out of the petroleum giant revealed it would get rid of its franchisees by 2020.

Caltex delivered a full year profit of $621 million, up 18% from the previous corresponding period – driven by strong performance out of their Lytton Refinery which logged earnings of $308 million for the year.

But Caltex has announced it will spend somewhere in the ballpark of $120 million to take company control of its 433 franchise stores within the next 2 years.

Caltex said the move to out franchisees is not connected to the staff underpayment issues they faced in 2017, but a company decision to regain control of its core business to achieve growth targets going forward.

Either way investors are a bit spooked today and Caltex has fallen from its 52-week high mantle after a solid 12 months of price gains, up from $27.55 at this time last year.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.