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

 


NZ Refining posts 1H loss in face of shrinking margins

NZ Refining posts first-half loss in face of shrinking margins, strong kiwi

By Paul McBeth

Aug. 21 (BusinessDesk) - New Zealand Refining Co, the Marsden Point oil refinery controlled by its major customers, sank into the red in the first half of the financial year as weak processing margins and a strong kiwi dollar eroded earnings.

The Whangarei-based company posted a loss of $6.96 million, or 2.23 cents per share, in the six months ended June 30, from a profit of $5.23 million, or 1.87 cents, a year earlier, it said in a statement after the close of trading. Revenue sank 27 percent to $92.4 million.

"By far the biggest impacts on the company's processing fee in the first half have been the weakening of refiners' margins, brought about by a marked decline of the benchmark Singapore refiners' margin, and the high exchange rate," chairman David Jackson said. "The directors have every confidence that the company will prove itself capable of weathering the business environment in the latter part of the year."

The company has been improving its gross margins by taking advantage of historically low wholesale natural gas prices, as one of four initiatives it's pursuing to lift the margin by 66 US cents a barrel.

Chief executive Sjoerd Post said the company was on track to cut costs by $13 million, $6 million ahead of expectations.

The board didn't declare an interim dividend, and agreed that where a shareholder was represented by two directors, the fee for the second director would be waived.

The shares rose 3.1 percent to $$1.69, and have sunk 20 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news