Caltex’s magazine for employees, franchisees & resellers
Issue 48 May – Jun 09
Article Highlights
Top of the list of achievements Des has presided over are seeing the lost time injury frequency rate fall to 1.2 million hours in the first quarter of 2009, down from 3.0 million hours in 2008, which was in itself a record.
In this issue:
Des King's farewell to Australia
Des King
‘I’ve loved the people and the country’
As announced at the end of April, Incitec Pivot CEO, Julian Segal, will succeed Des King as Managing Director and CEO when Des’ secondment from Chevron ends on 30 June 2009.
As Elizabeth Bryan, Caltex’s Chairman,said at the Caltex AGM on 23 April 2009: “Des has made a significant contribution to Caltex over the last three years. He has taken the company to the next level of performance and confirmed our position as the leader in the Australian downstream oil industry.
“He has been dedicated to Caltex and I know he will be missed by everyone in the company. I would like to thank him for his contribution to Caltex and, on a personal note, I’d like to add how much I’ve enjoyed working with him.”
During his secondment, Des has seen Caltex report the company’s best ever safety record in 2008. “I feel good about how we’ve steadily improved safety performance”, says Des.
“The great thing is that we’ve continued this into 2009. The lost time injury frequency rate decreased from 3.0 per million hours worked in 2008, to just 1.2 per million hours worked in the first quarter of 2009.”
Des is also proud of his involvement in the development of Caltex’s current strategy. The plan to be the number one and growing fuel and convenience marketer in Australia, underpinned by a value creating supply chain that includes manufacturing, has taken shape under his leadership.
As testament to the strength of the Caltex business, the Australian Financial Review recently announced that Caltex had enjoyed the highest earnings growth of any Australian company outside the resources sector during the last three years.
“This is why I can leave Australia and remain cautiously optimistic about Caltex’s future, despite the current economic climate”, says Des.
Another reason why Des remains cautiously optimistic is the first quarter results that were announced at the recent Annual General Meeting. Caltex’s replacement cost of sales operating profit for the first quarter was $97 million, an 11% increase from the first quarter of 2008. There was a slight decline in petrol volumes, but an increase in jet and diesel sales compensated for this. Refinery production was up, reflecting improved reliability and the weaker Australian dollar gave refiner margins a boost.
When his secondment ends, Des will return to the United States to continue his career with Chevron.
When asked if he had enjoyed his time here, Des responded enthusiastically, “Of course. Working for Caltex is like working in an expanded family. This is a wonderful country with wonderful people.”
A highlight of his time here was snorkelling off Hayman Island on the Great Barrier Reef with his wife, Georgeann, and 10 year old son, Elliott.
“It was too cold for the Aussies, so we had the area to ourselves, and I must add that we didn’t even need wetsuits, because we’re British! We were delighted to see the fish and coral first hand”, says Des, “It was an absolute highlight and epitomised for us everything that this marvellous country offers”.