Caltex defers $20M worth of projects

Press, 17 April 1982, Page 21

Caltex defers $20M worth of projects

PA Sydney Caltex Australia. Ltd. announced the deferral of projects worth S2OM in New South Wales and a cut in jobs as part of an over-all rationalisation scheme. The belt-tightening follows a huge drop in profits in 1981 — the year Australia's second largest petroleum marketer became 25 per cent locally-ow-ned. The chairman (Mr John Landels) told the group’s first annual general meeting as a listed company that severe petroleum price discounting and arbitrary price control by the New South Wales and South Australian Governments were partly to blame for the disappointing year.- ,

Other factors, including a maintenance shutdown of the catalytic cracker at Kumell refinery and maritime union disputes, which reduced the supply of crude.oil by 10 per cent, also cut profits. ■ But Caltex budgeted for an improved profit performance in 1982 and this was achieved in January and February. However Mr Landels warned of uncertain economic conOitions at home and abroad. The 1981 profit dropped to S2IM from $50.9M. “Cun-ent high interest rates are causing a review of investment economics; the significant wage push and inflationary trends are also of considerable concern,” he said.