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New Zealand Refining boosts profits by 200% on higher margins
31 March 2005 - Operator of the Marsden Point Oil Refinery, the New Zealand Refining Company Ltd, has reported a record after tax operating surplus of $97.5 million for the year to 31 December 2004 as a result of significantly higher world refining margins.
NZ Refining chairman, Ian Farrant, said the refinery carried out a planned maintenance shutdown, which for the first time in over 20 years, saw the plant totally shut down for a period of five days. This was balanced by excellent plant availability outside of planned shutdowns.
“The shutdown carried additional costs in 2004, but this has been offset to some extent by lower electricity costs,” Mr Farrant said.
Mr Farrant said that the $180 million Future Fuels Project, to remove sulphur from diesel and benzene from petrol, had progressed over the year, with the project due for completion later in 2005.
Fuel volume transported through the 170 km refinery to Auckland pipeline was again at full capacity under its present configuration. The $8 million upgrade of the pipeline, which will add extra pumping capacity, is virtually complete.
Mr Farrant said the total $3 dividend for 2004 was exceptionally high and reflected the unusually high refining margins experienced during the year. These dividend rates were not expected to be maintained.
NZ Refining supplies approximately 70% of New Zealand’s petrol needs, 84% of diesel, 83% of jet fuel, 100% of fuel oil and 75% of road bitumen.
The company uses crude oil, crude oil-derived residue and blendstock to make its products. Sources of crude oil are mainly from the Middle East, Australia and Asia with a small volume of light oil from Taranaki. Occasional deliveries are obtained from Africa.
NZ Refining is 23.6% owned by BP New Zealand, 19.2% by Mobil Oil NZ, 17% by Shell New Zealand and 14.2% by Auckland company Emerald Capital.
