MENU

The Caltex Australia Limited (ASX: CTX) share price surges on profit upgrade

Shares in Caltex Australia Limited (ASX: CTX) were up 3% to $30.22 on Tuesday after the fuel supplier released its profit guidance for the first half of 2018.

On a historic cost basis, after-tax profit is expected to be between $385 million and $405, approximately 50% above the previous corresponding period. This includes a product and crude oil inventory gain of about $90 million.

On a more conservative replacement cost basis – which values oil at the current price rather than at the price the company purchased its reserves – NPAT would be between $295 million and $315 million, a small increase over the $294 million reported in the first half of 2017.

EBIT from retail operations will be down 17% to a range of between $150 million and $160 million. Retail fuel margins were negatively impacted by rising crude oil prices, as retail prices take some time to adjust to higher input costs.

Retail contributions were also affected by the transition of 230 stores from franchise to company operations.

The highlight of the release is the good performance from the wholesale segment, with EBIT up 9% to a range of between $315 million and $335 million.

But there are other blue chip stocks that increased their dividend on the back of growing profits. Follow the link below to get your free report and learn about these outperforming companies.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino 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 Scott Phillips.

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.