Caltex Australia has scotched speculation it was working on an earnings downgrade by announcing a 45.1 per cent increase in underlying first half net profit to $251 million.
The gains were driven by strong refining margins at its Lytton refinery in Brisbane and stronger premium fuel sales.
However overall sales of transport fuels of 7.8 billion litres were down from a year ago, which was blamed on the loss of a major supply contract.
The supply and marketing business, including its service stations and wholesale transport fuels, delivered nearly double the earnings of its refining.
Caltex's release of the unaudited results on Thursday was delayed by about a fortnight prompting media speculation it would announce something negative.
The news was good, although the company's shares closed 48 cents, or 1.4 per cent, down at $32.89.
It remains below the $37.88 level it was at in March, the day before Chevron sold its 50 per cent stake for $4.6 billion.
The company also reported that it more than doubled its unaudited net profit on a historical cost basis to $375 million - which is not its preferred measure and includes the effect of oil prices on inventory value.
That included a $28 million gain on the sale of a property in Western Australia and a $95 million gain on the value of oil and fuel inventories.
The results are a forecast and will be audited before being officially reported in August.
AAP gr/gfr
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