Refinery company buoyant

The New Zealand Refining Company, which operates the Marsden Point oil refinery, had a good 2015, shareholders were told at the company's annual meeting last week. Photo / John Stone

Shareholders at the New Zealand Refining Company's annual meeting voted 99.88 per cent in favour of changing the company's constitution, allowing for a smaller board.

Shareholders also voted (by a similar majority) to re-elect independent directors Vanessa Stoddart and Mark Tume, and ExxonMobil representative Andrew Warrell.

Refinery board chairman Simon Allen told the meeting the company had had an exceptional 2015 with a Net Profit after Tax (NPAT) of $150.9 million for the period ended December 31, 2015, compared to $10 million in 2014.

A big factor was the Gross Refining Margin (GRM) for 2015, which averaged US$9.20 per barrel prior to cap or floor adjustment, well ahead of the average for the previous year of US$4.96 per barrel.

Highlights for the year included:

- The refinery processed more crude oil than ever (42.6 million barrels).

-Processing fee revenue increased significantly to $379.2 million (2014: $168.4 million) around $27 million better than the previous record in 2006.

- Uplift over the Singapore Complex Margin improved to average US$4.45 per barrel (2014: US$3.46).

- Cash generation from operations at $265 million was up substantially (2014: $67 million), which allowed the refinery to complete its Te Mahi Hou expansion project and reduce net borrowings to $193 million (2014: $315 million).

- A favourable exchange, with the New Zealand dollar averaging US.70 for the year, compared with an average of US.82 the previous year.

- If you have any business news, tips or ideas contact biz@north ernadvocate.co.nz or (09) 470 2838.