Caltex FY17 earnings came in at the top end of the estimated range, at $620 million.
Caltex will announce the outcome of their asset review at the end of June.
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We expect to see commentary around divestment of station freehold land, which should be a net positive for share holders.
FY19 outlook for revenue is 2% growth to $23 billion, EBIT $930 million , EPS $2.40 and DPS $1.20, placing the stock on a forward yield of 3.5%.
We consider CTX fully- valued at the current price range.
After buying at lower prices and selling the May $36 calls for $1.00 credit, we’ll be pleased to collect the upcoming dividend of 61 cents on March 12th, and then deliver the stock in May.
