Job cuts looming at leaner Caltex

Caltex has delivered some solid financial results but more jobs will go as it conducts a company-wide review of costs and efficiency

Caltex Australia has announced it achieved a net operating profit of $173 million in the six months to the end of June 2014, the figure a slight increase of $2 million on the corresponding 2013 period, while also confirming it is set to axe around 350 jobs as part of a major review of its operations in this part of the world.

The firm's marketing and distribution arm posted earnings before interest and tax (EBIT) of $393 million for the first half of 2014, although the figure was offset to a degree by an EBIT loss of $65 million in its refining and supply division.

According to Caltex Australia's Managing Director and Chief Executive Officer, Julian Segal, the figures put the company on a stable footing as is faces the future.

"This result is at the upper end of our recent half-year profit guidance," he said.

"Our balance sheet remains strong and, despite operating within a competitive and ever-changing environment, the outlook for our business continues to be positive. We are well progressed in restructuring our supply chain, with the conversion of our Kurnell refinery to a leading import terminal on schedule and the refinery closure sequence to commence in October this year.

"This has enabled us to commence a company-wide cost and efficiency review, which will establish a stronger platform for the business going forward."

Caltex has confirmed the 350 jobs to go will come from the company's operational and support functions, and will be made in addition to the cuts stemming from the closure of its Kurnell refinery in Sydney.

The cuts and restructure will result in an estimated saving of $100 million per annum, says Caltex.

Job cuts looming at leaner Caltex

Tags