Caltex Australia is decreasing its dividend in preparation for settlement of its acquisition of Gull New Zealand.
BusinessDesk says the Australian fuel giant has reported a 17% jump in annual profit despite revenue dropping, and is looking to regional expansion with its acquisition of Gull New Zealand the first step.
According to BusinessDesk, Caltex booked A$610 million in profit for the year ended Dec. 31, 2016, up from A$522 million a year earlier, despite revenue dropping 10$ to A$17.9 billion.
The board declared a 52 Australian cent final dividend, down from 70 cents in 2015, taking its total dividend for the year to 102 cents from 117 cents a year earlier.
The company is yet to pay A$420 million for two recent acquisitions – Gull and Milemaker Petroleum in Victoria.
The Gull acquisition adds about 300 million litres of transport fuel sales, along with 77 retail sites. The brand is operationally positioned as a price challenger, according to Caltex Australia, and will be earnings accretive from in the first full year of ownership, with completion anticipated in the second quarter of 2017 pending Overseas Investment Office approval.
