Caltex Australia : REFINER MARGIN UPDATE (AUGUST 2016)

23 September 2016

Caltex advises its realised lagged1Caltex Refiner Margin (CRM2), in respect of CRM sales from production for the month of August 2016.

The August unlagged CRM was US$8.77/bbl. This is below the prior month (July 2016: US$9.37/bbl) and prior year monthly comparative (US$18.29/bbl). Regionally, the unlagged Caltex Singapore Weighted Average Margin was US$8.42/bbl, below the prior month (July 2016: US$8.49/bbl) and prior year (August 2015: US$15.35/bbl).

Higher Brent crude oil prices and a higher AUD/USD exchange rate in the last week of August drove an unfavourable US($0.69)/bbl pricing lag (July favourable pricing lag: US$0.93/bbl). The August 2016 realised CRM was US$8.08/bbl, below July 2016 CRM of US$10.30/bbl and the prior year comparative (August 2015: US$19.56/bbl).

Sales from production in August 2016 of 580ML were in line with the prior month (July 2016: 579ML), but above the prior year comparative (August 2015: 503ML).

For the eight months from 1 January 2016 to 31 August 2016, the average realised CRM was US$9.84/bbl (2015: US$16.73/bbl) with CRM sales from production totalling 4,084 ML (2015: 3,353 ML).

1. A fall in the Australian dollar crude price, particularly at the latter end of the month, produces a positive lag effect on the CRM (i.e. increases the CRM) and, conversely, in the event of a rise in the Australian dollar crude price, a negative lag effect occurs (i.e. reduces the CRM).

2. CRM represents the difference between the cost of importing a standard Caltex basket of products to eastern Australia and the cost of importing the crude oil required to make that product basket.

   The CRM is calculated in the following manner:

   Weighted Singapore product prices (for a standard Caltex basket of products)

   Less: Reference crude price (the Caltex reference crude marker is Dated Brent) Equals: Singapore Weighted Average Margin (Dated Brent basis)

   Plus: Product quality premium Crude discount

   Product freight Less: Crude premium

   Crude freight Yield Loss

   Equals: Caltex Refiner Margin

   The Caltex Refiner Margin is converted to an Australian dollar basis using the prevailing average monthly exchange rate.

   CRM is just one contributor to the replacement cost of sales operating profit (RCOP) EBIT earnings (excluding significant items). Other items contributing to the RCOP EBIT include Transport Fuels volume and margin, Lubricants and Specialties volume and margin, Non-Fuel Income and Other Margin less Operating Expenses.

3. The replacement cost of sales operating profit (RCOP) excludes the impact of the fall or rise in oil and product prices (a key external factor) and presents a clearer picture of the company's underlying business performance. It is calculated by restating the cost of sales using the replacement cost of goods sold rather than the historic cost, including the effect of contract based revenue lags.

A proud and iconic Australian company, Caltex has grown to become the nation's leading transport fuel supplier, with a vast network of approximately 1,900 company-owned, franchised or affiliated sites. Caltex aims to be the market leader in complex supply chains and the evolving convenience marketplace, by delivering the fuel and other everyday needs of its diverse customers through its networks. With a history tracing back to 1900, Caltex has safely and reliably fuelled the needs of Australian motorists and businesses for more than a century. It operates as a refiner, importer and marketer of fuels and lubricants. It is listed as CTX on the Australian Securities Exchange.

For more information visit www.catlex.com.au

Rohan Gallagher

Head of Investor Relations 61 2 9250 5247

0421 051 416

rohan.gallagher@caltex.com.au