MATT CHAMBERS
August 29, 2017
The Australian
Fuel seller and refiner Caltex Australia plans to restructure its business into wholesale and retail units, in a move it says will cost 120 jobs and save $60 million a year.
The restructure was announced with a first half net profit of $265 million, down 16 per cent on a year earlier because of non-cash crude and product inventory losses.
Replacement cost of sales operating profit (RCOP), which strips out the impact of oil price movements on inventories, was up 21 per cent to $307m, at the top end of recent guidance of $290m to $310m.
The company (CTX) announced it would undergo “project Quantum Leap”, in which it would separate out its convenience store and petrol station business from its wholesale, refining and importing businesses.
“The company has made the decision to change its operating model by establishing two interdependent, but different businesses which require separate cultures, processes and systems, both with significant growth options,” Caltex said.
“The company has merged supply, business-to-business, refining and infrastructure into one business unit (fuels & infrastructure) to better optimise our value chain. Retail will focus on the company’s petrol and convenience (P & C) business. “
About $20m of restructuring costs will be recognised in the second half, with the job losses to take place over the next six months from “operational and support roles”, Sydney-based Caltex said.
Caltex shares hit a 10-month high after the announcement. At 10.57am (AEST), Caltex was up 98c, or 2.9 per cent, at $34.43.
A fully-franked interim dividend of 60c per share was declared, up from 50c a year earlier
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