Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Refining FY earnings hold up, full strategic review looms

NZ Refining FY earnings hold up, full strategic review to come

Feb 27 (BusinessDesk) - New Zealand refining, the nation’s only oil refinery, made a tax-paid profit of $32.6 million in the year to Dec. 31, down 5 percent on the previous year, with volatile refining margins improving towards the end of the year, but still averaging less than in 2011.

In a statement to the NZX, Refining reported record output for the year of 33.6 million barrels of transport fuels and achieved an average refining gross margin of US$5.77 a barrel, compared with an average US$6.11 a year earlier.

"We do not expect the uplift towards the end of 2012 to be sustained and consider it likely that margin volatility will continue through 2013," said chairman David Jackson. Business conditions would remain "difficult" this year, but the refinery was well-placed to respond.

The shares fell 5.6 percent to $2.55 and have declined 17 percent in the past 12 months.

Revenue in the latest year was down 4 percent to $278.5 million, while ebitda (a measure of operating earnings) was down 14 percent at $113.5 million.

Changes to depreciation policy, which appear to have seen the company assign longer commercial lives to some of its storage and other infrastructure assets, reduced the annual depreciation charge by $16.7 million.

After five years in operation, the company would also fully review its strategic plan during 2013 to reflect significant changes to the structure of the refining industry, ongoing over-capacity in the Asia-Pacific region and a customer change in New Zealand, referring to the advent of Z Energy, which owns the downstream storage and retail assets formerly controlled by Shell New Zealand.

Work has begun on the $365 million Continuous Catalyst Regeneration Platformer project, with some $70 million spent to date and site preparation due in mid-2013.

The company announced a five cents per share fully imputed dividend, payable March 28, with a record date of March 21.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news