The loss was mainly attributed to a $147.5 million goodwill write-down on Pioneer's share of Australian Petroleum (Ampol) bought in 1997. Included in the dismal profit figure was a $46.4 million inventory loss due to falling crude oil prices and a $11.4 million write-off in sales to the now defunct Ansett Airlines.

Refiner margins were at an average of $US1.61 a barrel for 2001, a low figure by industry standards but a improvement from the losses suffered last year as a result of the Singapore refineries' misreading of petrol demand in the United States.

Caltex managing director, Mr Tony Blevins, said his was of the opinion that there were too many refineries in Australia and at least one had to go. This is a view shared by many in the market who consider it a necessity if the industry wishes to improve profitability.