rcop ebit breakdown
Caltex refiner margin (CRM) $339m
CRM represents the difference between the cost of importing a standard Caltex basket of products to eastern Australia and the cost of importing the crude oil required to make that product basket. The CRM calculation basically represents: average Singapore refiner margin + product quality premium + crude discount / (premium) + product freight – crude freight – yield loss.
CRM remained flat in US dollar per barrel terms in the first half of 2008 (averaging US$10.40 a barrel vs first half 2007: US$10.74 a barrel), it dropped 16% in Australian dollar terms. This translated into a Caltex refiner margin of A7.02 cents a litre for the first half of 2008, down from A8.32 cents a litre in the same period in 2007. Refinery production in the first half of 2008 was lower due to a major planned maintenance shutdown at the Kurnell refinery and unplanned shutdowns at both the Lytton and Kurnell refineries. Production of petrol, diesel and jet fuel was 4.7 billion litres (first half 2007: 5.4 billion litres).
Transport fuels marketing margin $220m
Transport fuels comprise petrol, diesel and jet fuel. The transport fuels marketing margin is based on the average net margin over Import Parity Price in Australia.
The average transport fuels marketing margin, on a cents per litre basis, was 21% higher than in 1H07 as a result of higher petrol and diesel margins. Additionally, transport fuels sales volume increased by 5% driven by increased demand for diesel in the mining industry, increased sales due to gas pipeline interruptions, increased activity in the agricultural sector, and increased jet fuel sales due to new customers. This is partly offset by declined petrol sales due to the increase in the pump price on the back of the increasing cost of crude oil which negatively impacted the market.
Lubricants and specialties margin $67m
Lubricants and specialties products include finished lubricants, base oils, liquified petroleum gas, petrochemicals, bitumen, wax and marine fuels.
Lubricants and specialties margins, on a cents per litre basis, increased 26% in 1H08 compared to 1H07, primarily due to targeting lubricant sales to more profitable segments in the industry and high fuel oil and bitumen margins.
Non fuel income $71m
Non fuel income includes convenience store income, franchise income, royalties, property, plant and equipment rentals, StarCard income and share of profits from non-controlled equity distributors.
The underlying growth in non-fuel income was around 5%, before adjusting for a one-off cost of $5 million arising from the introduction of a centralised logistics program.
Operating expenses ($390m)
Operating expenses in this caption include refining and supply, marketing, corporate and other operating expenditure.
First half 2008 operating costs increased by $18 million compared with first half 2007 driven primarily by increased employee costs, increased shutdown expenses due to the planned and unplanned shutdowns in 1H08, and increased depreciation.
Other ($5m)
Other includes foreign exchange impacts, clean fuels grant, pipeline and charter revenue.
Total RCOP EBIT $302m
Note: The breakdown of RCOP shown here represents a management reporting view of the breakdown and as such individual components may not reconcile to statutory accounts.