Caltex Australia Ltd. (CTX), Australia’s biggest oil refiner, plans to cut about 350 jobs that will result in a charge of as much as A$155 million ($144 million).
The job losses will mostly occur within 12 months and follow previously announced cuts related to closing the Kurnell refinery, the Sydney-based company said today in a statement as it reported a 17 percent drop in after-tax profit.
Caltex, half-owned by San Ramon, California-based Chevron Corp. (CVX), will start shutting the Sydney facility in October as Australian refineries struggle to compete with plants in Asia, according to the company. Caltex said two years ago that it would halt refining at the unprofitable plant in the second half of this year and turn the facility into a fuel-import terminal, following a similar decision by Royal Dutch Shell Plc.
Caltex shares rose 2.9 percent to A$26.30 as of 10:07 a.m. in Sydney trading. The benchmark index fell 0.1 percent.
The review will result in restructuring costs in the second half of the year of A$130 million to A$155 million before tax, according to the statement. Caltex also said it expects an inventory reduction of about 1 million barrels in the second half of 2015.
Caltex said in July 2012 that closing Kurnell would lead to the loss of more than 330 jobs.
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