Warning on profit

Press, 31 May 1985, Page 10

Warning on profit

The profits of the New Zealand Refining Company, Ltd, will be those of 1982 to 1984 until an incentive scheme is introduced. Mr A. A. Revell, the chairman, made this clear when he addressed the company’s annual meeting, held in Christchurch yesterday. The company earns its profit from two sources: ® Net earnings from the processing fee, calculated to provide a return up to 12.5 per cent after tax on shareholders’ funds.

• The efficiency incentive payment.

The latter was suspended from the end of the first quarter of 1985. The Government has undertaken to

negotiate with the company with a view to introducing a new incentive scheme once the expanded refinery is in operation. Until this scheme was introduced, profits would be lower, Mr Revell told the meeting. The meeting approved a final divided of 8 per cent, making the total for the year 16 per cent, compared with 14 per cent last year. Mr Revell said the refinery on-site construction was now 75 per cent complete. The meeting was held in Christchurch because of the number of shareholders in the south, he said. The company last met in Christchurch in 1971.