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22/2/2012 — Oil and Gas
NZ Refining directors support refining expansion
By Ross Louthean

Based on the 2011 financial performance directors of Refining New Zealand supported plans for a $365 million expansion of the Marsden Point’s petroleum processing units.

The company announced an after tax profit of $34.5 M which was lower than the previous year, and so were EBITDA earnings of $132.2 M.

Company chairman David Jackson described the result as a “sound performance in a challenging business environment, made more difficult by a slump in refiners’ margins at the end of the year.”

He said a return to healthier margins in January 2011 continued for much of the year falling off at the end of the year as Singapore margins fell on the back of Asia Pacific gasoline prices.

A pronounced decline of $US5 a barrel was unexpected, and reflected the current sector volatility.

Despite this, the average margin achieved for the 2011 financial year was $US6.11. This compares to a margin of $US6.17 per barrel in 2010.

Jackson said the strength of Refining NZ was built around a clear vision, and a tried and tested business plan and strategy.

The company was able to repay a further $NZ60 M of debt during the year. Borrowings at year end amounted to NZ25 M “and means that we have effectively paid off the debt associated with the $NZ190 M.

In 2011 Refining NZ achieved a product out-turn of 33.1 M barrels. (2010: 34.2 M barrels).

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