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BRIEF-Caltex Australia Says Target 2020 Group Capex Will Be Reduced To Below $250m

Published 06/04/2020, 08:58 am
Updated 06/04/2020, 09:00 am
Caltex Australia Limited
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April 6 (Reuters) - Caltex Australia Ltd CTX.AX :

* GLOBAL FUEL DEMAND EROSION CAUSED BY COVID-19 EXPECTED TO IMPACT REFINING CONDITIONS FOR A NUMBER OF MONTHS

* TARGET 2020 GROUP CAPEX WILL BE REDUCED TO BELOW $250M FROM PREVIOUSLY STATED TARGET OF APPROXIMATELY $300M

* WILL BRING FORWARD, EXTEND DURATION OF PLANNED SHUTDOWN FOR UPCOMING LYTTON REFINERY T&I WHICH WILL NOW COMMENCE IN MAY 2020

* REVIEW OF FIXED COSTS IS UNDERWAY ACROSS ALL AREAS INCLUDING CORPORATE OVERHEADS

* DECLINE IN CRUDE OIL PRICE ALSO EXPECTED TO MEANINGFULLY FURTHER REDUCE GROUP'S WORKING CAPITAL REQUIREMENTS

* HAS ABOUT $2.7BN OF COMMITTED AVAILABLE DEBT FACILITIES & ABOUT $1.5BN OF UNDRAWN COMMITTED FACILITIES AND CASH

* GIVEN RANGE OF UNCERTAINTIES RELATED TO COVID-19, UNABLE TO PROVIDE UPDATED LYTTON PRODUCTION GUIDANCE FOR 2020

* SUBJECT TO MARKET CONDITIONS, WELL-PLACED TO SELL 49% MINORITY INTEREST IN CALTEX'S CORE FREEHOLD RETAIL SITES IN H2 2020

* SUBJECT TO MARKET CONDITIONS , WELL PLACED TO DIVEST SECOND TRANCHE OF HIGHER AND BETTER USE SITES IN H2 2020

* REVIEWED AVIATION BUSINESS AND TAKEN ACTION ON STRANDED COSTS, INCLUDING CHANGES TO ON-AIRPORT OPERATIONS, DEFERRAL OF CAPITAL INVESTMENTS

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