NZR
22/09/2014 09:27
MONTHLY
REL: 0927 HRS The New Zealand Refining Company Limited
MONTHLY: NZR: NZR Throughput and Margin Report July-August 2014
Due to excellent operational performance, the Gross Refinery Margin1) (GRM)
for the period was USD 6.75 per barrel representing a USD 7.30 per barrel
uplift over Singapore complex margins.
As a consequence, NZD 13.5 million of the Fee Floor2) was paid back to
customers during the July/August 2014 period. The GRM for the period,
including the Fee Floor repayment, was USD 4.14 per barrel, resulting in a
Processing Fee income of NZD 21.3 million.
Throughput for the period was 6.3 million barrels with an average exchange
rate of USD/NZD 0.86.
Singapore complex margins continued to fall during the period to an average
of negative USD 0.55 per barrel. Refining NZ's margin uplift over Singapore
complex margins of USD 7.30 per barrel was materially higher than the normal
range of USD 3 - 4 per barrel. This uplift was driven by:
- Increased margin uplifts delivered by the margin initiatives implemented
during the first half of the year. During July/August these changes have
added approximately USD 0.90 per barrel, ahead of our plan of USD 0.66 per
barrel.
- Running less crude oil in order to draw lower value residue from stock and
to improve the yield of higher value product on process units.
- A favourable Brent-Dubai price spread (lower Brent prices), effectively
lowering our crude cost vs. Dubai. Around 40% of our crude is priced off
Brent as benchmark.
The maintenance 'pit stop' for a preventive fix of a compressor in the
platformer unit, as advised with the half year announcement, was completed
successfully ahead of plan during the first half of September.
Our cost performance continues to be on track, exceeding our saving targets
for the year.
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
End CA:00255496 For:NZR Type:MONTHLY Time:2014-09-22 09:27:49
