NZR
12/11/2015 12:26
MONTHLY
PRICE SENSITIVE
REL: 1226 HRS The New Zealand Refining Company Limited
MONTHLY: NZR: NZR Throughput and Margin Report for September-October 2015
Refining NZ earned a Cap-adjusted Processing Fee of NZD 71.8 million for the
September/October period, marginally short of the all-time high achieved in
2008.
The Gross Refinery Margin1) (GRM) for the period - prior to Cap adjustments -
was USD 9.47 per barrel, resulting in a Processing Fee income of NZD 73.5
million. The year-to-date Cap adjustment increased to NZD 7.2 million (back
up again from the most recently reported NZD 5.5 million), which could be
used before the calendar year-end if GRMs for the last two months are below
the Cap.
Another strong operational performance resulted in a throughput of 7.2
million barrels. We now expect to exceed our planned throughput guidance of
40.8 million barrels for the year by around 4.6% or 2.0 million barrels.
The Singapore complex margin for the period strengthened to an average of USD
5.12 per barrel. Refining NZ's margin uplift over the Singapore complex
margin was USD 4.35 per barrel.
The average exchange rate for the period was USD/NZD 0.65.
Pre-startup work on the Te Mahi Hou project is progressing to plan, and we
remain on-track for a start-up during the last week in November. The project
is expected to lift the refinery's GRM by around USD 0.90 per barrel in the
current crude and gasoline price environment.
Appendix I shows further information on throughput, margin and refining
income.
Historical Analysis
A five year history of Throughput, Margins and Processing Fees is attached as
Appendix II and can also be found on the company's website:
www.refiningnz.com
1) The Margin Cap limits the Processing Fee to a maximum Gross Refining
Margin of 9 USD per barrel for over a calendar year. The Margin Cap applies
to each Customer severally (see Explanatory Notes for more detail).
2) Refining NZ's Gross Refining Margin is defined as the typical market value
of the products produced minus the typical market value of the feedstock
used, expressed per barrel of feedstock used. The margin incorporates the
cost of the hydrocarbon used for fuel and incurred as process losses.
End CA:00273348 For:NZR Type:MONTHLY Time:2015-11-12 12:26:53
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