Dirty diesel hits NZ Refining interim

The New Zealand Refining Company posted a 15 per cent drop in net profit to $16.45 million for the June half-year.

The drop, from $19.31 million for the same period last year, was accompanied by a dividend of 50c a share, the same as last year.

Earnings a share fell to 69c from 81c.

NZ Refining chairman Ian Farrant said operating income of $84.61 million was up 9 per cent on the first half of last year.

Refining margins over the period averaged $US2.13 ($4.90) a barrel, the same as last year, although margins dropped significantly in May, June and July.

Intake was 18.89 million barrels, compared with 19.18 million barrels last year. Refining income rose to $67.60 million from last year's $57.90 million.

Costs were up because of increased depreciation, a maintenance shutdown, the increased cost of chemicals and the issue of diesel quality.

The diesel problem in May was blamed on an additive put in winter-grade fuel from late March. NZ Refining estimated it would take about a month to completely remove the dirty fuel from the market.

- NZPA