Caltex shareholders are set for a windfall after the company almost tripled dividends, lifted its payout ratio and flagged more capital returns.
The oil refiner and distributor was financially freer to do so now that it had closed its Sydney Kurnell refinery, said chief executive Julian Segal.
Caltex also announced on Monday it had increased underlying full year net profit by a better than expected 48 per cent to $493 million.
The dive in crude oil prices towards the end of December boosted profits, meaning Caltex's remaining refinery in Brisbane was paying less for its base product.
The fuel supplier increased its fully franked final dividend to 50 cents a share from 17 cents, a 38 per cent payout ratio or percentage of net profit paid out.
It also reinstated a target payout ratio of 40-60 per cent, which had been lowered during the $270 million two-year conversion of Kurnell into an import terminal, which also cost more than 300 jobs.
The lower working capital now needed had helped Caltex reduce net debt to $639 million from $827 million over six months, said chief financial officer Simon Hepworth.
"We have a strong balance sheet capable of funding growth, a more attractive dividend and if sustainable growth opportunities don't exist we may consider returning capital to shareholders," he told a media briefing.
Caltex's lift in profit was driven by a six per cent rise in pre-tax profit in its marketing business, including its service stations, to a record $812 million.
The supply chain business swung to a pre-tax profit of $64 million from a $171 million loss.
The fall in the crude oil price helped margins in that business, with its remaining refinery at Lytton in Brisbane performing well and the price of refined products yet to fall as far and not completely correlated to crude.
The future of Lytton and its 600-plus workers is uncertain, with competition from larger Asian refineries continuing to bite and Caltex to shut it down for seven weeks this year for a $60-$70 million maintenance program.
Mr Segal's pay remuneration increased to $5.69 million in 2014 from $4.19 million.
He said he was getting better at the job and had no intention of leaving the company any time soon.
Shares in Caltex, whose biggest shareholder is Chevron with a 50 per cent stake, fell six cents to $36.61 but are up 75 per cent from a year ago.
CALTEX PROFIT JUMPS ON RECORD MARKETING
* Full year underlying net profit up 48 pct to $493 million
* Historical cost net profit (including non-cash effect of oil price on inventory value) down 96 pct to $20 million
* Revenue down two per cent to $24.2b
* Fully franked final dividend of 50 cents per share, up from 17 cents.
