The Caltex Australia Limited (ASX: CTX) share price soared 7% higher today following a positive trading update this morning.
In an announcement to the ASX, the transport-fuel supplier and retailer said it expects to report a full-year historic cost profit after tax (HCOP) between $530 million and $550 million, excluding significant items. That compares to the $132 million achieved last year.
Including the significant items as well as the effects of a rise and fall in oil and product prices, Caltex said its HCOP for the year to 31 December 2015 is expected to be between $560 million and $580 million.
In addition, the better-than-expected profits, lower oil prices and Australian dollar will also help the company pay off a meaningful amount of debt. Indeed, it forecasts its net debt position to be around $420 million at 31 December 2015, down from the $715 million it reported at 30 June 2015.
Caltex shares have risen more than 15% in the past three months, but it could still be worthy of a spot on a watch list since many analysts are currently forecasting profit and dividend growth in coming years.
