Australia’s largest fuel-trucking company, Cootes Transport, could see $131 million wiped from its market value and 15% of its workforce axed following the loss of major contracts with Shell and BP.
Cootes’ involvement in a fatal accident in Sydney’s Northern Beaches last year, which claimed the lives of two people, has caused a company-wide fallout including a failed IPO and now the withdrawal of two major contracts.
The loss of the contracts, which represents about 60% of its fuel transportation revenues and 30% of parent company McAleese’s total revenue, could force the Mark Rowsthorn-chaired McAleese Group to cut its Cootes fuel-hauling division by 150 jobs, reports The Age.
McAleese has said the accident was not the only reason for the contracts ending, with CEO Paul Garaty saying adequate returns on the contracts weren’t being made and the change “gives us an opportunity to rationalise the business.”
Shares in McAleese slumped 29% to $1.09 on Thursday in the wake of the contract losses.
Read more here.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.