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New Zealand Refining has boosted annual after-tax profit by 11 per cent to $124.9 million, at the upper end of expectations, on the back of high refining margins and a favourable exchange rate.
NZ Refining, which operates New Zealand's only oil refinery at Marsden Point, near Whangarei, in October forecast profit for the year ended December 31 of between $115-125m.
The refinery processed 39.2 million barrels of feedstock, up from 36.9 million a year earlier, and pumped 2.8 million cubic metres of petrol, diesel and jet fuel to Auckland, equal to 2007's total.
The company charged the maximum processing fee allowable under current agreements, and improved its gross refining margin for the year to US$11.30 ($22.19), although it was capped at US$9.00, from US$8.20 the previous year.
Revenue rose 18 per cent to $397.8m.
"The strong financial performance was underpinned by excellent plant reliability throughout the year, refining margins and a favourable New Zealand dollar exchange rate," chairman David Jackson said.
BP, Chevron, Mobil, Emerald Capital, Shell and about 3000 other investors are shareholders, although Shell said last week it was reviewing its 17-per cent stake as part of a review of its New Zealand assets.
The company's superannuation fund's actuarial deficit of $5m to $7m became a liability of $40.7m under international accounting standards, and an actuarial loss of $50.6m was entered in the accounts.
The accounting valuation was not used to determine the company contributions to the fund to meet future pension fund obligations, said Jackson.
The refinery had its safest year on record, with two million hours without a lost-time incident.
The company expected to complete its $180m upgrade, increasing capacity by 20 per cent, by the end of the year.
Two planned shutdowns this year would cut annual capacity by about 5 per cent.
Directors declared a final dividend of 30c per share, payable on March 19.
- NZPA
