N.Z. Refining profit falls 43.3 p.c.

Press, 4 October 1977, Page 46

N.Z. Refining profit falls 43.3 p.c.

The unaudited group net profit of The New Zealand Refining Company, Ltd, fell 43.3 per cent to $1,135,000 i in the six months to June 30 after adding back additional depreciation of $525,000 arising from the revaluation of fixed assets, says the chairman (Mr A. A. Revell) in a half-yearly report, reports the Press Association. Several factors contributed j to the downturn in profit, he says. The intake for processing was i ,693,000 tonnes, 690,000 tonnes lower than in the same period last year, resulting in a reduction in processing fees of some $420,000. The adoption or the revaluation of fixed assets and the subsequent additional depreciation accounted for $525,000, while running expenses were contained

t.within the forecasted inI crease of $358,000. Offsetting these items ‘ were additional earnings in ’ interest on surplus funds of 1 $300,000 and reduced taxI ation. . The outlook for the ’ second-half of 1977 is 1 affected by the biennial > shutdown, which will curtail i production for about five • weeks during October and November, when substantial 1 maintenance costs will be s incurred. For these reasons, which ; were forecast tn the last ati- , nual report, the second half i of the year will generate a , lower net profit than the i first half. • The fixed assets increased from $42.2M to $52. JM, and - the increase had been crediI ted to the assets revaluation 1 reserve account. r The profit was after pro- • viding $120,000 less for tax I at SI.6M.