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

 


NZ Refining hydrocracker upgrade gains lag estimate

NZ Refining hydrocracker upgrade gains lag estimate

By Suze Metherell

June 17 (BusinessDesk) - New Zealand Refining, the Marsden Point oil refinery controlled by its major customers, says upgrades to its hydrocracker have boosted efficiency even as it misses its original forecast margin.

New Zealand's only oil refiner refitted its mild vacuum column as part of an efficiency drive to bolster margins and increase diesel production. It had forecast the refit, which boosts separation efficiency, would result in a 13 US cents per barrel margin, but said the "current weak margin environment" meant the step-up was closer to 11 US cents.

"This is just one component stream in our processing, it is an important first contribution to the series of initiatives aimed at lifting the performance on the hydrocracker which taken together, are expected to add 66 US cents per barrel to Refining NZ's gross refining margin," chief executive Sjoerd Post said in a statement.

The company, which is majority-owned by BP New Zealand, Mobil Oil NZ, Z Energy and Chevron New Zealand, said it is working closely with customers on supply planning and monitoring stock levels during the shutdown as they manage fuel stocks via a combination of products from Marsden Point and scheduled imports. NZ Refining supplies about 80 percent of New Zealand’s refined fuels.

The shares rose 1.8 percent to $1.72 and have declined 18 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news