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Business Description: Caltex Australia Limited (CTX) is a transport fuel supplier, convenience retailer and an integrated oil refining and marketing company. It operates two major refineries at Kurnell in Sydney and Lytton in Brisbane. The company also operates with a myriad of subsidiaries; Caltex Australia Custodians, Caltex Australia Petroleum, Caltex Fuel Services, Petroleum Services, Hunter Pipe Line Company, B&S Distributors and Jet Fuels Petroleum Distributors.
Strategy Analysis: CTX strategy is based on lifting refinery utilisation rates so it can take full advantage of excess demand for refined product in Australia. Refiner margins can be volatile but high refinery utilisation rates and strong marketing activities are important in driving operating cash flow and earnings. This allows for the reduction of debt levels and improving the return on equity and the return to shareholders. The alliance with Woolworths underpins volume growth. The CEO aims to lift CTX into the top quartile in terms of total shareholder return and to eliminate earnings volatility - a very big task.
Caltex Australia reported NPAT of $57.6m for the year ended 31 December 2012. This includes significant items of approximately $309.0m (after tax), which primarily relates to provisions in respect of the closure of the Kurnell refinery. This compares favourably to the 2011 after tax loss of $713.22m, which included significant items of $1.12bn (after tax) relating to the refinery impairment. The 2012 result includes product and crude oil inventory losses of $92.0m after tax, compared with an inventory gain of $138.0m after tax in 2011. Revenues from ordinary activities were $23.26bn, up 5% from last year. Basic and Diluted EPS was 21.0 cents compared to (264.3) cents last year. Net operating cash flow was $399.74m compared to $446.4m last year. The final dividend declared was 23.0 cents, taking the full year dividend to 40.0 cents compared with 45.0 cents last year.
The Age 12/12/2013 |
Westpac will next year allow customers to make payments at credit card terminals through their smartphones, the latest sign of banks competing through investments in technology. From early 2014, customers with certain Android handsets will be able to access funds from debit or credit card accounts by waving their phones at merchant terminals.
The Age 12/12/2013 |
Senior National Party figure Peter Walsh has repeated criticism that the government's rejection of the GrainCorp takeover was a decision made "on the hop", and one that it might regret.
The Age 12/12/2013 |
A total of 2900 jobs to go at Holden, multiples of that likely to go in Australian supplier companies. Tony Abbott called last May's announcement by Ford that it would stop making cars in Australia in 2016 at a cost of 1200 jobs "a black day for Australian manufacturing". Holden's decision to stop making vehicles in 2017 could turn the car-making industry's lights out for good.
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