Caltex Australia Limited: Company Overview, Strategies, and Finances

This report provides an analysis of Caltex Australia Limited, covering its company activities, strategies, and financial performance. Caltex, a major player in the Australian oil market, is examined in terms of its services, including retail oil transport and integrated supply chain networks. The report highlights the company's financial results, including after-tax profits and NPAT, and discusses the quality of its financial disclosures, emphasizing compliance with Australian GAAP and IFRS standards. The analysis references the company's annual and half-year reports, providing insights into revenue, expenses, and segment reporting. The conclusion affirms that Caltex maintains high-quality disclosures in accordance with international accounting standards.

Caltex Australia Limited

Introduction
In this report a brief analysis of the Caltex Australia Limited will be taken to provide the
summarized information on company various services, strategies and financial performance.
Also some information related to the quality of disclosure made by the company in its annual
report has been provided.
Company Activities and Strategies
Caltex operates as of the largest oil company in retail network of Australia but the
supermarkets Woolworth and Coles have larger market share as any of the Australian company.
Caltex provides various retail oil transport services to their valuable customers. Some of the
services provided by the Caltex are Bull deliveries, On Site refueling, National Truck Network,
Telematics, Marine, myCaltex and Soil Remediation (Business Services, 2017).
Caltex is strengthening its position as the leader in Australia to transport fuels to the
diverse range of customers through providing high quality services and convenience as when
desired. Company uses integrated supply chain network for providing services from the source
station to customers. Caltex aims to be leader but not follow others through redefining what
customers expects and through placing the beliefs on the crossroads of what are needs of today
and what can be achieved tomorrow (Annual Report, 2016). In year 2016, company has invested
very high amount in the service modal that has increased capacity and other capabilities of the
existing modal.
Brief summary on the financial performance

In the operating year 2016 company has recorded the after tax profits of $610 million
AUD and in year 2015 it was $522 million AUD. In year 2017 (Half Year Results) company has
earned the NPAT of 307 million AUD which is up by 21 % as the previous year half year result.
It shows the very high increase in the net profit after tax of the company (Half Year Report,
2017). There has been decrease of total expenses due to lower replacement cost of goods sold
due low price of refined products. All the cash generating units of the company has performed
exceptionally well that has created a value to the customers and also increases the profit earning
capacity of the company (Annual Report, 2016).
Quality of financial disclosure made in the accounts
The company financial statements have been prepared in accordance with the
requirements of the Australian GAAP. It complies with the requirement of the Corporation Act
and Australian Accounting Standards (AASBs). The annual report of the Caltex Corporation has
been prepared to make compliance with the requirements of the International Financial
Reporting Standards (IFRSs) that are defined by the International Accounting Standards Board
(IASB). So it can be said that company has kept all the compliance of the defined accounting
standards and conceptual framework as mentioned in the IFRSs. In the annual report of year
2016 and half year report of year 2017 shows that company has made all the disclosures
regarding the assumptions taken and accounting policies followed. For example, revenue from
sale of goods has been measured at the fair value of consideration received of receivable, detail
information of various segments in the segment reporting segments (Annual Report, 2016).
Conclusion

All the financial information disclosed by the Caltex Australia Limited is as per required
accounting standards that shows that quality of disclosures are kept at the international standards.

References
Annual Report. 2016. Caltex. [Online]. Available
on:https://www.caltex.com.au/our-company/investor-centre/reports-and-presentations [Accessed
on: 11 October 2017].
Business Services. 2017. [Online]. Available on:
https://www.caltex.com.au/our-solutions/business-services# [Accessed on: 11 October 2017].
Half Year Report. 2017. Caltex. [Online]. Available on:https://www.caltex.com.au/our-
company/investor-centre/reports-and-presentations [Accessed on: 11 October 2017].