CALTEX Australia has reported a 38 per cent drop in net profit after being hit with $30 million in crude and inventory losses.

Net profit after tax fell from $270 million to $167 million in the year to June on the back of lower oil prices, the company announced today.

Profits on a replacement cost basis, which strips out the effect of changes in the world oil price, rose from $113 million to $197 million over the same period due to better margins from its refinery and transport fuel operations as well as marketing of petrol.

The result was in line with Caltex's recent forecast of a first-half net profit of between $185 million and $205 million.

The company declared a fully franked interim dividend of 17 cents per share.

In July Caltex announced it would transform its Sydney oil refinery at Kurnell into an import terminal, resulting in 330 direct job losses and leaving another 300 contract positions in limbo.

Caltex Australia chief executive Julian Segal said the result was in line with profit guidance. "Our balance sheet remains strong and the outlook for our business continues to be positive,'' he said.

"We've also taken the tough decisions to secure the company's future. Restructuring the supply chain over the next two years and providing the funding flexibility to support growth in our marketing operations will reduce future earnings volatility and provide a solid platform going forward.''