Yes, it was the reading of the Z-Energy (ZNZ) prospectus that reminded me to listen to the CTX result presentation and to re-visit the company as an investment opportunity.
I noted that Z-Energy currently earns 16.5 NZ cents/litre in its fuel distribution business, compared to CTX's 4.4 Au cents/litre.
And while some structural market differences (mainly geography and retail/commercial mix) mean that CTX's fuel marketing margin is unlikely to ever match that of ZNZ, I do think that there is upside to CTX's margin once it is in a position in 2014 to sell everything it sources at full margin (unlike now, given Kurnell - by its very operational nature - produces products that are not in demand and therefore have to be discounted in the market or even sold at a loss)
I just didn't make any comparative reference to ZNZ's because I assumed no one would really be familiar with the company given its recent listed history. Seems I was wrong!
Cam
CTX Price at posting:
$18.60 Sentiment: Buy Disclosure: Held
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