Comparison of Caltex Australia Limited and Cooper Energy Limited

This report compares Caltex Australia Limited and Cooper Energy Limited, including their operations, achievements, and CSR policies. It also discusses the earnings per share of both companies.

Running head: ADVANCED FINANCIAL REPORTING
Advanced Financial Reporting
5/24/2019

ADVANCED FINANCIAL REPORTING 1
Table of Contents
Introduction................................................................................................................................2
Overview of the company......................................................................................................2
Caltex Australia Limited....................................................................................................2
Overview of Cooper Energy Limited.................................................................................2
Organizational Structure of Caltex.....................................................................................3
Organizational Structure of Cooper Energy Limited.........................................................4
Business Achievements of Caltex......................................................................................4
Business Achievements of Cooper Energy Limited..........................................................5
Corporate Social Responsibilities Policies of Caltex.........................................................5
Corporate Social Responsibilities Policies of Cooper Energy Limited.............................5
CSR Reporting of Caltex Australia Limited..........................................................................6
National greenhouse and energy reporting compliance.....................................................6
Carbon Pollution Reduction Scheme.................................................................................6
Energy Efficiency Opportunities Program.........................................................................7
Meeting biofuels mandate..................................................................................................7
CSR Reporting of Cooper Energy Limited............................................................................7
Acting with care.................................................................................................................8
Behaviour of Personnel......................................................................................................8
Compliance with laws........................................................................................................8
Illegal or unethical behaviour.............................................................................................9
Earnings per share..................................................................................................................9
Conclusion and Recommendation............................................................................................10
Reference..................................................................................................................................12

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Introduction
The intent of the paper is to deliberate the importance of using standards in the business. The
paper is presenting the comparison between the operations and policies used by two
businesses that is Caltex Australia Limited and Cooper Energy limited. Some of the concepts
that are being highlighted in the below presented report are CSR policies, operations,
products, and standards adopted by both the companies to operate legally in the market. In
addition to this, the report has also discussed the earning per share concept and the value of
the EPS of both the companies has been calculated.
Overview of the company
Caltex Australia Limited
Caltex Australia Limited is involved in the acquiring, allocating, supplying, and refining of
petroleum products in the Australia, Singapore, and New Zealand market. It runs its business
through convenience retail and fuels and infrastructure segments. The company was founded
in 1900 (Bloomberg, 2018).
Overview of Cooper Energy Limited
Cooper Energy Limited is an upstream gas and oil production and exploration company,
which is majorly involved in the detection, commercialization, and sale of the gas in the
Australian market. The main project of the company is the Sole gas project, which is right
now under development in the offshore Gippsland Basin. The business is known for
operating production of offshore gas and examination plans in Otway Basin. In addition to
this, the company is also involved in the development and exploration in the Gippsland
Basin, and also in the western flank of the Cooper Basin. The company was established in the
year 2001 (Bloomberg, 2019).

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Organizational Structure of Caltex
Source [(BB-PICAG, 2018)]
The Board of Directors of Caltex Australia are:
Steven Gregg the Chairman of the company
Julian Segal managing director and CEO of the company
Trevor Bourne Independent Non-executive Director
Mark Chellew - Independent Non-executive Director (Caltex Australia, 2018)
Melinda Conrad - Independent Non-executive Director
Bruce Morgan - Independent Non-executive Director

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Barbara Ward AM - Independent Non-executive Director
Penny Winn - Independent Non-executive Director
Organizational Structure of Cooper Energy Limited
Source [(Abadi, 2016)]
Board of Directors
John C. Conde AO – Chairman
David P. Maxwell – Managing Director
Hector M. Gordon – Executive Director
Jeffrey W. Schneider – Independent Non-Executive Director (Cooper Energy Limited, 2018)
Elizabeth A. Donaghey - Independent Non-Executive Director
Business Achievements of Caltex
Caltex has initiated the humble beginning in the Australian market but today company has
become the leading organization of the market in the fuel transport segment by meeting

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around one-third of the fuel requirement of the country. With the support of its effective
supply chain of the fuel, business has successfully created a reputation in offering consistent
and high quality fuels to diverse segments of the consumer, comprising agriculture,
government, mining, aviation, retail, transport, marine, and small-to-medium enterprises. The
company proudly says that it is the major convenience retailer in Australia.
Business Achievements of Cooper Energy Limited
 The company has successfully achieved the safety of the employees, environment,
and community through its different strategies
 The company is regularly experiencing growing revenue and margin generation from
its current processes of gas in the Otway Basin done by portfolio management.
 Well-organized and value-accretive production as well as the development of gas and
oil from present processes in the Cooper Basin (Cooper Energy Limited, 2017)
Corporate Social Responsibilities Policies of Caltex
Corporate social responsibilities policies followed by Caltex are National greenhouse and
energy reporting compliance, carbon pollution reduction scheme, energy efficiency
opportunities program, meeting biofuels mandate, etc. The company has to disclose its
contribution towards the society and the policies it adopts at the yearend in a specific tabular
format (Caltex Australia, 2008).
Corporate Social Responsibilities Policies of Cooper Energy Limited
The company has successfully created the code of conduct for all the subsidiaries of the
company. The code of conduct has set the standards of behavior that are anticipated by the
employees, officers, consultants, directors, and contractors of the company. All the
stakeholders of Cooper Energy including employees, creditors, the broader community,
customers, suppliers, and shareholders are responsible to manage its business and take

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decision with the utmost care, fairness, and integrity. Some of the policies that have been
adopted by the company under its code of conduct are acting with care, compliance with
laws, unethical or illegal behavior, and compliance of code, acting honestly and sensibly and
being a good citizen.
CSR Reporting of Caltex Australia Limited
National greenhouse and energy reporting compliance
From the year 2008, Caltex is successfully operating the use of energy and emission of
greenhouse gas in collaboration with the system of National Greenhouse Emissions
Reporting. Before making the mandatory reporting, Caltex is known for reporting over a
period under the program of intended Greenhouse Challenge. Every company of Australia is
now obliged to provide their report if they are involved in any type of emission of the
greenhouse gases and consume or produce the energy above them the stated quantities
(Caltex Australia, 2008).
Carbon Pollution Reduction Scheme
Caltex Australia is known for supporting the action on climate change. Though, being the
largest marketer and refiner of the Australian petroleum products, the planned Carbon
Pollution Reduction Scheme has major influence on the Caltex.
Under the specified CPRS scheme, the refineries of the Caltex will be canned as “emissions-
intensive trade-exposed” and probably obtain around 60% free licenses, but the precise
regulations for the permit eligibility need to be defined yet. The influence of the CPRS on the
future of Caltex Company will be based on the remaining permits price that should be
purchased. Overall emission of the refinery will be around 2.5 million tonnes; hence the net
carbon liability will be about one million tonnes yearly (Caltex Australia, 2008).

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Energy Efficiency Opportunities Program
In the year 2008, Caltex Australia directed an assessment of energy efficiency in all its
refineries as part of the program of Energy Efficiency Opportunities.
The conducted assessment measured every facet of the energy efficiency that is a capital
investment, operational management for the sustainable benefits, and operational
enhancements (Caltex Australia, 2008).
Meeting biofuels mandate
Caltex Australia presently has 400 sites delivering biofuel blends to the consumers. This
comprises Bio E10 Unleaded petrol and B2 and B5 biodiesel blends. With the establishment
of the biofuel blends in the portfolio, the company is able to successfully provide Caltex Bio
E10 Unleaded petrol to its consumers at discounted rates in comparison to the regular
unleaded petrol in order to inspire consumer’s acceptance.
Caltex Australia is taking all the required and sensible footsteps to encounter the current New
South Wales with the 2% ethanol target and presently company is on the track to encounter
its targets (Caltex Australia, 2008).
CSR Reporting of Cooper Energy Limited
Key principles that are encouraged through the code of conduct of the company are:
 The employees of the company are encouraged to work with care
 The organization gives major priority to the health and safety of every employee and
the society in which Cooper has operations.
 The company also encourage employees to work honestly with high personal integrity
standards
 Adhere to the regulations that are accepted by the company
 Discourage to participate in the unethical and illegal activities

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 Do not take advantage of the information or property for personal gain.
 Work for the best interest of Cooper and try to avoid getting involved in any type of
conflict (Cooper Energy, 2019a)
 Effectively operate business to be a good citizen and attain the respect of the
community
Acting with care
Cooper Energy Limited gives major priority to the health, safety of the employees, and
community and environment safety. The company is always aware of these matters. Under
the practice, this reflects that the company is committed to being transparent, responsible
treatment of partners and employees, fair dealing, and positive relations with society. Cooper
Energy Limited has been following different policies related to the Environment and
Community, and Health and Safety (Cooper Energy, 2019a). Every employee of the company
should follow these policies and confirm that they work accounting the policies of the
organizational culture.
Behaviour of Personnel
According to the principle and policies of the company, all the employees should follow their
duties with integrity and honesty. This code of conduct of the company gives value to all the
procedures and policies and same is expected by the employees (Cooper Energy, 2017).
Compliance with laws
Every employee should understand the spirit of all the regulation and rule, and the need for
professional and regulatory bodies that are applied to Cooper Energy and its operations.
Cooper Energy has different systems that are used to manage and monitor defiance, with
regulations, laws, and other duties comprising financial reporting. Cooper Energy and its
employees are responsible for their own actions (Cooper Energy, 2019a).

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Illegal or unethical behaviour
Cooper Energy Limited possess the process in place those people who bring unethical or
illegal activity in the eyes of the Managing Director or Board for inquiry. This procedure is
explained in details in the Whistleblower policy of Cooper Energy Limited (Cooper Energy,
2019a).
Earnings per share
Earnings per share is the metric which is used by the organization to find out how much
earnings will be received by the shareholders in respect with respect to every dollar invested
by the investors. The Earning per share is one of the most important metric in deciding thee
market value position of the two companies as selected for the purpose of the comparison.
The two companies are Cooper Energy Limited and Caltex Limited (Cooper Energy Limited,
2018).
Under the scenario of the Cooper Energy Limited, after adopting the reporting of the CSR
polices the company has yet not performed better and managed to get itself the positive
position out of the negative one. Further as can be observed from the graph and the table the
EPS of the Cooper Energy Limited has been 0.19 in the year 2014 and thereafter it fell to-
0.55 due to the negative profits. The negative profits occurred due to the heavy fluctuations in
the prices of the oil and gas and moreover the prices keep on going upside and hence the
company could not perform well. In the U.S the prices of the oil fell from 98.89 and the same
was 52.32 in the year 2015, 43.74 in the year 2016 and again the price increased from 54.15
(Index mundi, 2018).
On the other hand when compared with the performance of the EPS in case of the Caltex
Limited, the EPS of the Caltex Limited is shows an upward trend as there is a jump in the
profit made by the company over the period of the 5 years. The company’s outstanding shares

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remained at almost static range and the accelerating trend describes the position of the Caltex
in respect to the Cooper Energy Limited is sound and better. The profit has increased with
almost margin of the 5% and the overall EPS is 1.073 in the year 2018. In comparison to the
previous year the company saw a fall in the EPS but still there are chances to improve the
situation with certain measures (Trading Economics 2018).
Conclusion and Recommendation
The above report has provided a detailed description of Caltex Australia and Cooper Energy
limited. The report is comprised of the company's product and service details, achievements,
CSR policies, and organizational structure. From the analysis, it has been identified that both
the companies are leading their respective industry through their effective policies for the
environment as well as employees safety. Considering the increasing demand in the global
market for the products offered by Caltex and Cooper Energy, both the companies are
recommended to expand their operations in different markets. In addition to this, Cooper
Energy Limited is suggested to get involve and add environment safety policies into its code
of conduct for safeguarding the environment.
In order to increase the earnings per share there are three major categories which needs
immediate attention such as increase in the revenue, reduction in the cost which are the cost
of the goods sold, the general and the admin expense and the marketing, reduction in the
proceeds of the share. All these three steps can help the Cooper Energy Limited. Further in
order to reduce the share count the option of the share repurchase is beneficial. Overall from
the point of view of the investors the company shall invest in Caltex Australia.

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Reference
Abadi (2016) Organization Structure [online]. Available from
http://www.abadiservices.com/organization-structure.html [accessed 24 May 2019]
BB-PICAG (2018) Organizational Structure [online]. Available from http://picag.org/about-
us/organizational-structure/ [accessed 24 May 2019]
Bloomberg (2018) Company Overview of Caltex Australia Limited [online]. Available from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=877088
[accessed 24 May 2019]
Bloomberg (2019) Company Overview of Cooper Energy Limited [online]. Available from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=7688388
[accessed 24 May 2019]
Caltex Australia (2008) Caltex And Sustainability: Helping To Build A Sustainable Future
[online]. Available from
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[accessed 24 May 2019]
Caltex Australia (2018) Financial report [online]. Available from file:///C:/Users/Pooja
%20Khemani_JPR/Downloads/CALTEX%20AR2018%2007%20FinReport%20FULL.pdf
[accessed 24 May 2019]
Cooper Energy (2017) Annual Report [online]. Available from
https://www.cooperenergy.com.au/Upload/Documents/ReportsItem/2017.10.16-2017-
Annual-Report.pdf [accessed 24 May 2019]

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Cooper Energy (2019a) Code of Conduct [online]. Available from
https://www.cooperenergy.com.au/our-company/corporate-governance-and-policies/
corporate-governance/code-of-conduct [accessed 24 May 2019]
Cooper Energy (2019b) Our Company [online]. Available from
https://www.cooperenergy.com.au/our-company [accessed 24 May 2019]
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https://www.cooperenergy.com.au/Upload/Documents/ReportsItem/6.-FY17-Financial-
Report.pdf [accessed 24 May 2019]
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https://www.cooperenergy.com.au/Upload/Documents/ReportsItem/02-2018-Annual-
Financial-Report.pdf [accessed 24 May 2019]
Index mundi, (2018) Index Prices [online] Available from
https://www.indexmundi.com/commodities/?commodity=crude-
oil&months=60&currency=aud [accessed on 24 May 2019]
Trading Economics (2018) EPS Analysis Caltex [online] Available from
https://tradingeconomics.com/ctx:au:eps [accessed on 24 May 2019]

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