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The Australian company said on Tuesday that it will be in talks with “appropriately experienced partners”, to discuss a strategic real estate partnership.
As part of the company’s broader strategy, the sale will enable Caltex to benefit from “market value and development gains.”
This comes as Caltex’s fuels and infrastructure division reported a 1% increase in profit for its first half. It also reported earnings rose 9%.
Net profit was up 45% to $383 million in 2018, from $265 million in the first half of 2017.
Managing Director and CEO, Julian Segal, said ‘With the completion of the commercial separation of the Fuels & Infrastructure and Convenience Retail businesses, Caltex is primed for sustainable growth.’
Convenience retail delivered an EBIT result of $161 million, marginally better than expected. However, the convenience retail EBIT was down 14% on the same period last year due to the impact of rising crude and product prices on fuel margin.
On Tuesday Caltex shares fell 7.5 % to $30.81, their lowest level since July, and their biggest intraday decline in three years. Shares were trading at 6.68% lower at $31.75 just before market’s close on Tuesday.
The drop in shares comes despite the company reporting its strongest first half in six years.
Managing Director and CEO Julian Segal believes the results show the company's on-going development.
‘These half-year results demonstrate not only Caltex’s progress on transformation, but our un-wavering focus on business growth and our continued track record in good decision making to deliver value to our shareholders.' Mr Segal said.
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