Yesterday Caltex unveiled an unaudited increase in profit of 45% for the half year. The result featured a big improvement in margin on fuel refined in Australia. This improved to $US 15.71 per barrel from $US 9.20
The margin improvement was partly offset by a 4% decline in the total amount of fuel Caltex sold. Temporary factors may have been a factor in this sales decline. The loss of a large contract will be replaced by another contract in the current half year. Overall, Caltex has transformed its business following the closure of its Kurnell refinery. Debt has been reduced and dividends increased with the possibility of further capital management initiatives to come.
The Caltex chart shows it flirting with the neck line resistance of a bullish head and shoulder pattern. A clear break above this resistance could set up for a potential rally towards the 61.8% Fibonacci retracement at $35.70 or the 78.6% retracement at $37.08