NZ Refining posts bumper profit, announces share split

New Zealand Refining Ltd today posted another bumper half year profit and announced plans for a 10 for 1 share split.

The oil refiner, whose share register is dominated by the big petrol retailers Mobil, BP, Shell , and Caltex, reported an after tax profit of $62 million for the six months to June 30 .

The result is up sharply on the $34 million figure recorded in the same period a year earlier, which was hit by a major maintenance shutdown.

Chairman Ian Farrant said NZ Refining will split its shares in a 10:1 ratio on October 7 to bring the shares, which last traded at $49.80, more in line with the rest of the sharemarket.

The shares have soared in recent months as a global shortage of refining capacity has seen margins sky-rocket. That has put the shares, which were trading around the $33-mark earlier this year, out of the reach of most mum and dad investors.

The refinery processed 19.1 million barrels of crude oil during the half period, achieving a strong refining margin of US$7.76 per barrel.

That is off a high of US$8.81 hit in March-April, but well up on the US$5 per barrel a year ago.

Total operating revenue climbed to $164.5 million in the June half from $119 million.

Production at the refinery was close to full capacity.

NZ Refining completed an $8 million upgrade of its refinery during the first half, as part of its future fuels project allowing it to produce cleaner, world-class fuels.

The Future Fuels plant will be formally opened with a ceremony at Marsden Point this afternoon.

The company will pay an interim dividend of $1 per share on September 23.

- NZPA