Ann: FLLYR: NZR: Full Year Announcement 2015

• Release Date: 24/02/16 08:31
• Summary: FLLYR: NZR: Full Year Announcement 2015
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					NZR
24/02/2016 08:31
FLLYR
PRICE SENSITIVE
REL: 0831 HRS The New Zealand Refining Company Limited

FLLYR: NZR: Full Year Announcement 2015

The New Zealand Refining Company Limited

Results for announcement to the market
Reporting Period 12 months to 31 December 2015
Previous Reporting Period 12 months to 31 December 2014

The Directors of the New Zealand Refining Company Limited today announced the
Company's financial results for the year to 31 December 2015, details of
which are attached.  This report, including the results for the previous
corresponding year, is consistent with the audited financial statements of
the New Zealand Refining Company Limited for the year ended 31 December 2015.

Consolidated Results
1. Results $NZ 000
Revenue from ordinary activities
Current year $446,771
Up 92%
Previous corresponding year $233,019

Profit from ordinary activities after tax attributable to security holder.
Current year $150,771
Up 1417%
Previous corresponding year $9,941

Net profit attributable to security holders.
Current year $150,771
Up 1417%
Previous corresponding year $9,941

2. Final Dividend
Amount per security: NZ 20 cents per share.
Imputed amount per security: NZ 7.8 cents per share (fully imputed)
Record date: 10 March 2016
Dividend Payment Date: 24 March 2016

3. Net Tangible Assets per Security
As at 31 December 2015 $2.53
As at 31 December 2014 $2.08

COMMENTARY
The continued excellent running of the refinery's processing units and a
strong margin environment has seen Refining NZ report a significantly
improved Net Profit after Tax (NPAT) of $151 million for the year ended 31
December 2015 (2014: $10m).
Chief Executive, Sjoerd Post described the result as outstanding for the
refinery, with the Company posting a substantial year-on-year uplift in Gross
Refining Margin (GRM) alongside records for crude intake and processing fee
revenue.
"Hard work by our team of 500 employees and contractors has made this a
remarkable year for Refining NZ. You have to go back to 2005 to the "golden
age" of refining to find a similar set of results.

"In 2015, our core strategic strengths of plant reliability and quality fuel
production proved the springboard to capitalise on margins - which remained
strong on the back of the global demand growth for gasoline, particularly in
the US, China and India - and low crude prices.

"The NPAT result was $5 million better than the profit matrix given to the
market at the start of the year and in line with the revised matrix at the
half-year.

"Strong operating cash-flows from increased volumes and refining margins at
cap, or near cap levels for much of the year, enabled us to reduce net
borrowings to $193 million (2014:$315m) - within the Company's agreed gearing
ratio (10-20%)- and to pay an enhanced dividend to shareholders. We also
benefited from an improved NZD/ USD exchange rate, averaging USD 0.70 for the
year (2014: USD0.82)."

Post said that the Te Mahi Hou (TMH) project, commissioned at the end of
November, on budget and three weeks early, was running smoothly.

"A complex process unit such as TMH takes time to optimise fully as an
integrated part of the whole refinery. Early indications are that the unit is
starting to perform to its design specifications, including intake and extra
gasoline production."

PERFORMANCE HIGHLIGHTS
NPAT of $151m was a significant improvement on the previous year (2014:
$10m).

All-time record annual crude intake of 42.6m barrels was 0.5m barrels better
than the previous record posted in 2012.

Unplanned downtime at 0.33% (a mark of reliability), allowed the refinery to
capitalise on the high margin environment.

Processing fee revenue increased significantly to $379.2m (2014: $168.4m)
around $27m up on the previous record set in 2006.

The Gross Refining Margin (GRM) for 2015 averaged USD 9.20 per barrel prior
to cap or floor adjustment, (2014: USD 4.96 per barrel). The margin generated
above the cap, resulted in the processing fee being capped by $14m for the
year.

The Company improved its uplift over the Singapore Complex Margin. Normally
around USD 3.00-4.00, the uplift for 2015 averaged USD 4.45 per barrel, up
USD 0.99 per barrel on the previous year (2014: USD 3.46).

Cash generation from operations at $265m was up on the previous year
(2014:$67m).

DIVIDEND
The Company's Directors have [resolved to pay a fully imputed final dividend
of 20 cents per share to be paid on 24 March 2016, with a record date of 10
March 2016.  With an interim dividend of 5 cents paid in September, the total
dividend payment for the year is 25 cents.

OUTLOOK
Said Post:  "This result proves that our strategy is working, and now that
TMH is running it requires only a subtle shift, from one-off projects the
size of TMH to smaller capital growth projects with attractive pay back
periods."

"The reliable and safe production of quality fuels will always be the basis
for a strong refining business. Looking ahead we will continue to build our
strategy of lifting organisational capability, embedding our network of
strategic alliances, and supporting our talented team to put their pipeline
of growth ideas into action."

ENDS

For further information:
Greg McNeill
Communications and External Affairs Manager
T: 094325115; M: 021 873623; E: [email protected]
End CA:00278182 For:NZR    Type:FLLYR      Time:2016-02-24 08:31:47