N.Z. Refining profit

Press, 1 September 1989, Page 17

N.Z. Refining profit

The N.Z. Refining Company, which owns and runs the Marsden Point oil refinery, has made a profit of $4.3M in its first six months of operation under deregulation.

This was before SI4M of quarterly subsidy from the Government, net of GST, which the company is disputing in arbitration with the Government, and in the courts against the Inland Revenue Department.

The acting chairman, Mr R. W. L. Makeig, said fixed costs of operation were down 25% in the period and there had been only one un-

scheduled stoppage of the hydro Cracker, and this lasted seven days. The hydrocracker is at present down for 32 days for maintenance, and this will cut returns in the second half of the year. The refinery had been running at capacity, and

255,000 tons of products, largely high quality gas oil, representing 14% of total output, had been exported.

An interim dividend of 15c a share, the same as last year, has been declared. This will carry a full imputation credit.

N.Z. Refining Company, six months ended June 30 Revenue Profit before tax. . . 1989 $000 101,771 6550 1988 $000 112,386 10,071 Tax (excluding tax on extraordinary items) . 2185 2790 Profit after tax 4365 7281 Extraordinary items (net of tax) 14,076 1081 Profit after extraordinary items . 18,441 8362