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Caltex

Discussion and Analysis

 

 

1

Finance costs

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$12M

Net average debt increased to $748 million in 2008, compared with $537 million at 31 December 2007. As a result, financing costs also increased.

 

2

Tax and other activities

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$55M

Net cash outflows from tax and other operating activities were higher than 2007 due to income taxes paid of $209 million in 2008, compared with $162 million in 2007. In addition, interest received was $5 million lower in 2008.

 

3

Purchases of PP&E and
major cyclical maintenance

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$76M

Capital expenditure in 2008 increased primarily due to the ongoing investment on the new diesel hydrotreater unit at the Lytton refinery. This unit is scheduled to be commissioned in the second quarter 2009.

 

4

Net financing cash inflows

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$344M

Net financing cash inflows increased due to higher net borrowings in 2008 and a decrease in dividends paid. Total dividend payments in 2008 were $186 million, compared to $257 million in 2007.

simplified financial report
Cash Flows

For the year ended 31 December 2008

Millions of dollars 2008 2007 CHANGE
  Receipts from customers 27,608 21,469 6,139
  Payments to suppliers and employees (22,191) (16,041) (6,150)
  Payments for excise (4,767) (4,629) (138)
1 Finance costs paid (66) (54) (12)
2 Tax and other activities (204) (149) (55)
  Net operating cash inflows 380 596 (216)
3 Purchases of property, plant and equipment (PP&E) and major cyclical maintenance (427) (351) (76)
  Other investing cash flows (9) (17) 8
  Net investing cash outflows (436) (368) (68)
4 Net financing cash inflows/(outflows) 74 (270) 344
  Net increase/(decrease) in cash held 18 (42) 60