First Impressions on Caltex Australia (CLX) - 1H2015 result in line but dividend ahead of expectations

Bell Potter

Stockbroker

The segment results were also in line with the unaudited result (Supply and Marketing EBIT of $263m and Lytton EBIT of $154m) and net debt of $715m at 30 June was also consistent with what had already been flagged. An off-market share buyback was flagged. Caltex noted that, in February 2015, it highlighted there would be a focus on the efficient allocation of capital over the ensuing 12 months. Today the company reiterated this statement and added the following statement: “In the absence of material growth opportunities, the preferred form of additional capital return is an offmarket share buyback.” This indicates the form any capital management will take but the company is still assessing potential material growth opportunities (i.e. acquisitions) in 2H2015 before committing to any such buyback. Read the full summary here: (VIEW LINK)


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Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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