Financial Statement Study - Caltex Australia & Whitehaven Coal Limited

Financial Statement Study 1
Financial Analysis
Caltex Australia Limited & Whitehaven Coal Limited

Financial Statement Study 2
Executive summary:
This report presents the financial analysis of two large corporations which are listed on ASX
and are operating under the energy sector of Australia. The companies chosen herein are:
Caltex Australia and Whitehaven Coal Limited. The annual reports of both the companies
have been analysed thoroughly and it has been observed that Whitehaven Limited is
performing better than Caltex in various aspects such as management of investing and
financing activities and it terms of solvency as Caltex is holding 51% of debt in its capital
structure whereas Whitehaven is holding merely 17% of the total capital structure. Though
the effective rate of Whitehaven is lesser than Caltex, the cash tax rate of Whitehaven is
higher than that of Caltex. The cash tax rate of Whitehaven is 29.43% whereas Caltex has the
cash tax rate of 27.60%

Financial Statement Study 3

Financial Statement Study 4

Financial Statement Study 5
Table of Contents
Executive summary:..............................................................................................................................2
Introduction:..........................................................................................................................................5
Part 1: Owner’s equity:..........................................................................................................................6
Part 2: Cash-flows statement..............................................................................................................10
Part 3: Other Comprehensive income statement................................................................................16
Part 4: Accounting for Corporate Income Tax.....................................................................................18
References:..........................................................................................................................................21

Financial Statement Study 6
Introduction:
For the purpose of this assignment, two companies which are listed on the Australian
Securities Exchange are selected. These companies are: Caltex Australia and Whitehaven
Coal Limited. In order to analyse the financial performance of the selected companies, the
said companies are chosen from the energy industry of Australia. The selection of the
companies from the same industry will allow performing comparative analysis of
performance of both companies on the same grounds.
Caltex Limited is one of the leading manufacturers and supplier of petroleum products in
Australia. However, the company exports its products to Singapore and New Zealand also.
Caltex is in operations since 1900 and is headquartered in Sydney, Australia. It is operating
its business through two prime segments: Supply & Marketing Segment and Lytton Segment.
The former segment undertakes the selling function of Caltex’s products such as fuels,
lubricant & diesel oils, liquefied petroleum gas, speciality products and so on. The Lytton
segment, on the other hand undertakes the refining function in respect of crude oil to convert
the same into diesel oil, fuel and other petroleum products.
Whitehaven Coal Limited is also an Australian leading corporation in energy sector,
headquartered in Sydney. It is engaged in the business of development of coal mines in the
New South Wales, Australia. The company started its operations in 1999 and presently it is
supplying its coal products to various domestic units and also to various different foreign
countries such as Japan, Taiwan, India, China, Korea, Malaysia, Indonesia, Vietnam, the
Philippines and Chile. Whitehaven Limited also operates its business through two segments
i.e. pen Cut Operations and Underground Operations. Also, the company owns six mines in
North West New South Wales. It basically offers thermal coal and also the metallurgical coal
products.