KEY POINTS:
New Zealand Refining Company yesterday said its December year net profit fell 17 per cent to $112.1 million mainly due to maintenance shutdown periods and slightly lower margins.
Revenue fell 16 per cent to $338.3m but an unchanged fully imputed dividend of 35 cents per shares will be paid on March 27.
The oil refinery, 73 per cent owned by BP, Mobil, Caltex and Shell, processed 36.9 million barrels of crude against 38.8 million in 2006 and pumped 2.9 million cu m of finished product to Auckland via the refinery to Auckland pipeline.
The gross refining margin for the year was US$8.14 a barrel against US$8.37 a year earlier.
Chairman Ian Farrant said the result was based on plant availability and healthy margins.
Two planned shutdowns for catalyst regeneration and catalyst change-out occurred during the year, which combined with delayed shipping and operational constraints, resulted in lower throughput.
The company earns its margin in US dollars and the relative strength of the New Zealand dollar had a significant impact on its revenue and bottom line.
The fee payable by customers - mostly one of the refinery's major shareholders - for processing crude at the Marsden Point Refinery is subject to a cap of US$9 a barrel.
Actual margins generated from individual customers varied significantly, with some customer margins being capped, while others were below the US$9. The company retains 70 per cent of the gross refining margin.
Farrant said current "healthy" margins were driven by strong demand for oil products, particularly in Asia, and constraints in refinery capacity.
NZ Refining shares were down 2cs to $7.57. They have fallen from $8.14 two months ago.
- NZPA
