NZR
16/03/2015 10:57
MONTHLY
PRICE SENSITIVE
REL: 1057 HRS The New Zealand Refining Company Limited
MONTHLY: NZR: Margin and Throughput Report - Jan/Feb 2015
Refining NZ Throughput and Margin Report for January/February 2015
The Gross Refinery Margin(1) (GRM) for the period was USD 9.91 per barrel.
Throughput was 7.1 million barrels, which includes a record intake of 127,000
barrels per day during the month of February. The Processing Fee income of
NZD 59.6 million was reduced by NZD 5.2 million due to the Margin Cap(2).
This amount will be recovered in future months if the GRM moves below the
Margin Cap. The average exchange rate for the period was USD/NZD 0.75.
Singapore complex margins remained healthy and averaged USD 5.40 per barrel
for the period. Refining NZ's margin uplift over Singapore complex margins
of USD 4.50 per barrel for the period was again higher than the normal range
of USD 3 - 4 per barrel, driven by excellent operational performance and
ongoing favourable crude price spreads against the Dubai benchmark.
The strong margins have continued into March. In order to fully realise the
benefit of the higher margins in the near term, the planned shutdown,
initially scheduled to start in the last week of April, has been moved out by
a week to fall outside the March/April period. This is expected to increase
our processing fee for the first half year compared with the original plan.
The shutdown will now take place during May and involves the large crude
distillation unit (CDU1) and the platformer for maintenance and catalyst
regeneration.
Appendix I shows further information on throughput, margin and refining
income.
Historic 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) 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.
(2) The Margin Cap limits the Processing Fee to a maximum Gross Refining
Margin of 9 USD per barrel, over a calendar year (see Explanatory Notes for
more detail).
End CA:00261875 For:NZR Type:MONTHLY Time:2015-03-16 10:57:24
