Caltex posted neutral HY16 results with a 13% decline in operating revenue due to volatility in world crude oil prices. The group maintained a replacement cost operating profit (RCOP) EBIT of $397 million which is a 4% increase over the previous period. Within this result, the supply & marketing segment which accounts for approximately 80% of earnings performed well with underlying EBIT increasing by 10% over the previous period to $359 million. This however was neutralized by the Lytton refinery business which saw EBIT decline by 66% to $92 million.   The stronger operational cash generation led to a net operating cash flow increase to $325 million, which is a 72% increase from the previous period. In the same period, a share buyback of $270 million was conducted and financed from cash reserves. Due to share buyback, net debt for the group increased by 60% to $693 million, resulting in a gearing ratio of 20.9%. This is an increase of 7.5% from the previous period.   Click here for updated research on Caltex Australia Limited Subordinated Notes (ASX: CTXHA).