Caltex (CTX) +6.97%; continued its climb higher, now almost 50% higher than the panic low set in June when guidance for the half was posted. Today the fuel refiner and retailer updated guidance for the Convenience Retail side of $190-$210m for the calendar year, with the second half far outperforming the first largely thanks to fuel margin improvement despite soft volumes. Refiner margins have rebounded significantly as the year has progressed, with October at $US12.01/bbl vs the 2nd quarter which averaged just $US7.45/bbl.
Along with the solid progress from the fuel business, Caltex announced plans IPO up to 49% of the groups property portfolio of 250 convenience freehold sites. First estimates of value suggest the sale could free up around $1b in cash for Caltex, with the new trust to receive around $80-$100m in rental payments in the first year. Caltex will remain the majority shareholder whilst also receiving a decent capital injection for “capital management opportunities” – sounds like the shareholders will be rewarded.
Caltex (CTX) Chart