UPDATE:New Zealand Refining Sees Fiscal Year Net Profit In Range Of NZ$10 Million-NZ$20 Million
16 Dezember 2009 - 11:44PM
Dow Jones News
New Zealand Refining Co. (NZR.NZ) said Thursday that refining
markets are under severe pressure and it expects net profit in the
year to Dec. 31, 2009, to be within a range from NZ$10 million to
NZ$20 million.
In the prior year, the country's only oil refiner reported a net
profit of NZ$124.9 million.
The company said it was experiencing difficult conditions in the
second half, including a high New Zealand dollar hurting
processing-fee income, and there remains considerable uncertainty
with respect to its final result.
"It certainly just shows how difficult and how volatile the
revenue line can be for that company," said First NZ Capital broker
Philip Hunter.
The share weakened on the news and was trading down 4.2% at
NZ$3.88 at 2150 GMT on extremely light volume.
Hunter said, however, the news was no surprise.
"They had signaled earlier in the year that they didn't expect
to make a lot. The share price has been weaker in an otherwise
stronger market," he said.
New Zealand Refining said refiners' margins "are under severe
pressure worldwide, exacerbated by an oversupply in the global
refining market which we expect will take some time to correct." It
said its own margins had been very low in the September/October
period but expects some recovery in margins--albeit modest--over
the coming periods.
Looking ahead, the company also said it has two scheduled major
shutdowns in April and September next year and "the replacement of
a catalyst in the hydrocracker will see a significant
non-discretionary capital spend." It said, however, that it has
adequate bank facilities to meet this expenditure.
New Zealand Refining refines around 70% of the country's fuel
and uses spare capacity to sell products internationally.
New Zealand Refining is considered an acquisition target, with
two stakes currently for sale: a 19.2% interest held by Exxon Mobil
Corp. (XOM) and a 17.2% stake owned by Royal Dutch Shell Plc (RDSA,
RDSB.LN). Other major stockholders include BP Plc (BP) with a 24%
stake and Chevron Corp. (CVX) with 12.7%.
A consortium led by Infratil Ltd. (IFT.NZ) has said it is in
exclusive negotiations with Royal Dutch Shell over the possible
acquisition of Shell New Zealand Ltd.'s refining and downstream
distribution and retailing businesses. It is expected to announce
the result of those talks imminently.
By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com
Order free Annual Report for Royal Dutch Shell
Visit http://djnweurope.ar.wilink.com/?ticker=GB00B03MLX29 or
call +44 (0)208 391 6028
Order free Annual Report for Royal Dutch Shell
Visit http://djnweurope.ar.wilink.com/?ticker=GB00B03MM408 or
call +44 (0)208 391 6028
Order free Annual Report for Exxon Mobil Corporation
Visit http://djnweurope.ar.wilink.com/?ticker=US30231G1022 or
call +44 (0)208 391 6028
Infratil (ASX:IFT)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Infratil (ASX:IFT)
Historical Stock Chart
Von Dez 2023 bis Dez 2024