Caltex CEO discusses FY14 results and strategy Interviews March 03, 2015 11:51 AM Transcription of interview with Caltex Australia Limited (ASX:CTX) Managing Director and CEO, Julian SegalLelde Smits: Caltex Australia has just released its results for the 2014 financial year. What was your net profit and key metrics over the period?Julian Segal: The 2014 profit after tax on the replacement cost operating profit for Caltex was $493 million. That’s a solid result underpinned by good growth in marketing and good operational performance in supply chain, as well as the delivery of our Kurnell project.Lelde Smits: What was the key factor which contributed to Caltex Australia’s annual performance within the supply chain?Julian Segal: Within our supply chain the key factor in 2014 was the delivery of our Kurnell transformation project, whereby we closed the refinery and we opened up the biggest transport fuel terminal in Australia. We’ve done it on time, we’ve done it on budget and being a $270 million project, it’s a significant achievement.Lelde Smits: What factors impacted Caltex Australia’s result within marketing?Julian Segal: The factors that contributed to the good result in marketing was a significant increase in the premium diesel and premium gasoline. Specifically it was pleasing to see people migrating from Vortex 95 to Vortex 98.Lelde Smits: Caltex Australia successfully converted the Kurnell refinery to an import terminal last year. How does the development sit in the broader context of the company’s strategy?Julian Segal: The closure of Kurnell and its conversion to a major import terminal was a significant milestone in executing on our strategy, which is really all about transforming the Company from two businesses, refining and marketing, to one integrated transport fuel business. And therefore, the achievement of this milestone is enabling us to deliver on that strategy.Lelde Smits: What is the extent of the Caltex Australia’s footprint and how do you plan to remain the market leader?Julian Segal: Caltex is the leader in transport fuels across Australia. We supply about a third of all transport fuels into this economy, and without us supplying on time a reliable product, the economy will come to a standstill. We are achieving this by investing significantly in our distribution infrastructure, such as pipelines and indeed such as the major import terminal at Kurnell.Lelde Smits: Could you outline where Caltex Australia will be focussing over the 2015 financial year?Julian Segal: The Caltex strategy starts with our vision, which is to be the leader in transport fuels across Australia. And we’ll be doing that by delivering top quartile total shareholder returns. To deliver that, we’ve got four pillars in our strategy. The first is a superior supply chain capability, the second is about our offering to the customer, the third is about organisational competitiveness and the fourth is about corporate growth.Ends
