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- Release Date: 28/03/14 17:59
- Summary: MONTHLY: NZR: Refining NZ Throughput and Margin Report for Jan/Feb 2014
- Price Sensitive: No
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NZR
28/03/2014 15:59
MONTHLY
REL: 1559 HRS The New Zealand Refining Company Limited
MONTHLY: NZR: Refining NZ Throughput and Margin Report for Jan/Feb 2014
The Processing Fee earned for the January/February 2014 period was NZD 22.0
million, generated from a throughput of 6.7 million barrels.
The average Gross Refinery Margin 1) (GRM) for the period was USD 3.86 per
barrel and the average exchange rate was USD/NZD 0.83.
Singapore complex margins recovered slightly during the period to average
around USD 0.70 per barrel for January/February 2014. Market premia for
actual crude oil processed, compared with crude oil marker prices used for
Singapore margins (Dubai or Arab Light), remained above typical historical
levels for the period, negatively impacting Refining NZ's uplift. While the
outlook for margins remains uncertain, we have seen the market premia for
crude oil reducing during March 2014.
The shutdown of the hydrocracker and related units to replace catalyst and to
perform maintenance and project work, commenced during the first week of
March. Overall, the planned activities are progressing well, though bad
weather and some emergent repairs on the hydrocracker mean that completion of
the shutdown has been put back five days. The planned completion date of 8
April 2014, remains in line with the broader timeframe provided to our
customers.
The shutdown will reduce refinery intake by around 20% for the March/April
period. This has been factored into the supply planning with our customers
which sets the overall intake for the year at circa 41 million barrels.
Refining NZ's margin will also be impacted as a result of the hydrocracker
being off-line, since this limits the company's ability to upgrade lower cost
feedstock into high value products.
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:00248879 For:NZR Type:MONTHLY Time:2014-03-28 15:59:25
