NZ Refining Company Profit Jumps 43%

The Marsden Point refinery company, New Zealand Refining, has announced a record 2005 after tax operating surplus of $139.8 million, up 43% on the $97.5 million figure recorded in 2004.

The refinery had a successful year processing 39.3 million barrels of crude oil (up from 38.9 million barrels in 2004) and it pumped 2.8 million (2004 2.7 million) cubic metres of finished product down the pipeline to Auckland.

Chairman of New Zealand Refining Ian Farrant said the result was due to a combination of high international refining margins and a world class operating performance at the Marsden Point Refinery.

Mr Farrant said margins for refining in the current environment were extremely difficult to predict. “It would be wrong to assume that margins as we have seen them over the last two years will remain at such levels in the long term. It is important for the company to have excellent asset availability and a cost structure that makes the company viable at all times during the highs and lows of business cycles”.

“The directors are particularly pleased that the company's excellent performance is balanced across the areas of health, safety, environmental and financial achievement.

“We achieved more than 2.5 million manhours without a lost time incident, and we significantly improved our environmental performance, these are very important indicators for our company. The staff and company stakeholders can be proud of this performance”, Mr Farrant said.

Chief executive Thomas Zengerly said the year had been very busy and satisfying for the company and its employees. The successful completion of the Future Fuels project to make cleaner fuels and the board's approval to further develop the case for increasing refinery capacity were some of the highlights of 2005, he said.

Mr Farrant said that the company would be using retained profits to retire debt and to help position the company for possible major capital works in the future. A final decision on whether to expand refinery capacity would be made towards the end of 2006.

NZRC is a publicly listed company but is majority owned by Shell, BP, Mobil, and Caltex.