Dick Warburton said the aim was to reduce the debt below $900 million or 45% of equity. Caltex currently has $954 million of debt.

He also flagged the massive investment required to bring its refineries into the clean fuels era, estimated at $250 million.

He said it was premature in light of the above issues to pay a dividend in respect of 2002. Caltex returned a $215.2 million profit for the year.