Caltex CEO comments on Chevron 50% shareholding sale

Caltex Australia Managing Director and CEO Julian Segal welcomed new investors to its share register following the successful sell down by Chevron of its 50% shareholding in Caltex. Segal said Caltex was pleased that Chevron’s share sale was met with strong demand from investors.

“Caltex understands from Chevron that the book was oversubscribed with a final price of $35 a share, reflecting strong interest in the stock. The success of the sale is also a strong endorsement of our strategy, which we have delivered on to date, and which remains unchanged,” Segal said.

“Caltex is Australia’s leader in transport fuels and we remain committed to delivering top quartile shareholder returns. We retain an unyielding commitment to serving our customers with safe and reliable supply.

“We have operated in Australia since 1900 and been listed on the Australian Securities Exchange for more than three decades, having long existed as an independent company that understands and proudly serves Australian consumers and business.”

Caltex will retain the same senior management team that has successfully delivered on our strategy. Chairman Elizabeth Bryan will be standing for re-election at the Annual General Meeting on 7 May, with the full support of the Board.

Segal said Caltex remained focused on investing in the business and in growth initiatives to generate sustainable, long term earnings growth, as outlined in its 2014 full year results announcement in February.

“Our focus in delivering shareholder returns is to explore areas for growth – we continue to look to leverage our existing capabilities in retailing, franchising, supply chain management, infrastructure services, and the processing, storage and distribution of hydrocarbons,” Segal said.

“We will do this while retaining a disciplined approach to capital management and our investment grade rating. In the absence of sustainable growth investments, we may consider capital management opportunities.” Caltex’s supply chain is unaffected by Chevron’s share sale.

“Ampol Singapore has been operating for over 12 months and has successfully forged strong links to a broad range of reputable fuel suppliers across Asia and beyond. Chevron is one of several suppliers contributing to our comprehensive and flexible supply chain,” Segal said.

As Chevron has noted, the current trademark licensing agreement between Chevron and Caltex will remain in effect following the sale.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/30032015/caltex-ceo-comments-on-chevron-shareholding-sale-538/