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

 


NZ Refining raises $48M in placement at 4% discount

NZ Refining raises $48M in placement at 4% discount for funding flexibility

March 3 (BusinessDesk) – New Zealand Refining raised $48 million in a placement of new shares at a 4 percent discount to give the nation’s only oil refinery more funding flexibility as it invests in new capacity in the face of volatile refining margins and exchange rates.

The Whangarei-based company sold the shares to institutions after the close of trading on Friday at $1.68 apiece. The stock ended trading last week at $1.75 and has declined 15 percent this year.

NZ Refining said in a statement that its current debt funding facilities were sufficient to meet its capital spending needs, which include the $365 million Te Mahi Pou project, begun in 2012, to build a new continuous catalyst regeneration platform (CCR) at Marsden Point. The expansion is expected to lift the refinery’s share of New Zealand’s petrol market to 65 percent from 55 percent.

It will also offer existing shareholders the opportunity to buy up to $15,000 each of new shares via a share purchase plan, which has a record date of March 12 and opens on March 17.

“The combination of the placement and the underwritten component of the share purchase plan is a prudent move by the board to manage our balance sheet while we face lower New Zealand dollar refining margins coupled with the construction of Te Mahi Hou” chairman David Jackson said.

The placement was managed and underwritten by First NZ Capital, which is also underwriting the share purchase plan up to $5 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news