Full Year Announcement 2016

Full Year Announcement

2016

The New Zealand Refining Company Limited

Res ul ts for announcement to the market
Reporti ng Peri od 12 months to 31 December 2016
Previ ous Reporti ng Peri od 12 months to 31 December 2015

The Di rectors of the New Zeal and Refi ni ng Company Li mi ted today announced the Company's fi nanci al res ults
for the year to 31 December 2016, detai l s of whi ch are attached. Thi s report, i ncl udi ng the res ul ts for the
previ ous corres pondi ng year, i s cons i stent with the audi ted fi nanci al s tatements of the New Zeal and Refi ni ng
Company Li mi ted for the year ended 31 December 2016.

Consolidated Results
1. Results $NZ 000
Revenue from ordi nary acti viti es
Current year $354,156
Down 21%
Previ ous corres pondi ng year $446,771

Profi t from ordi nary acti viti es after tax attri butabl e to s ecuri ty hol der.
Current year $47,177
Down 69%
Previ ous corres pondi ng year $150,771

Net profi t attri butabl e to s ecuri ty hol ders .
Current year $47,177
Down 69%
Previ ous corres pondi ng year $150,771

2. Final Dividend
Amount per s ecuri ty: NZ 6 cents per s hare.
Imputed amount per s ecuri ty: NZ 2.3 cents per s hare (ful l y i mputed)
Record date: 16 March 2017
Di vi dend Payment Date: 30 March 2017

3. Net Tangible Assets per Security
As at 31 December 2016 $2.43
As at 31 December 2015 $2.53

COMMENTARY

Refi ni ng NZ has reported a Net Profi t after Tax (NPAT) of $47 mi l l i on for the year ended 31 December 2016.
Chi ef Executi ve, Sj oerd Pos t s ai d the ‘standouts’ i n what he des cri bed as a s trong res ul t, were worl d-cl as s
rel i abi lity; record crude i ntake; s trong free cas h-fl ow; and a Gros s Refi ni ng Margi n (GRM) at the top of i ts
hi s tori c USD 4-6 range.
“In 2016 our Gros s Refi nery Margi n (GRM) averaged USD 6.47. The margi n weaknes s we had s een at the s tart
of the year, gave way to s tronger margi ns i n the s econd hal f, hel ped by conti nued s trong demand for gas ol i ne
on the back of new vehi cl e growth i n New Zeal and and As i a and a 19% year-on-year i ncreas e i n Jet fuel
demand dri ven by record vi s i tor numbers to Auckl and Internati onal Ai rport.”
“Our new petrol-maki ng uni t contri buted a GRM of USD 0.90 per barrel , and our $5 mi l l i on i nves tment i n
smal l-to-medi um, s hort payback proj ects i n 2016 grew our GRM by USD 0.10 per barrel .”
Sai d Pos t: “Underpi nni ng thi s res ul t i s an outs tandi ng operati onal performance, begi nni ng wi th a s ucces s ful,
i nj ury free mai ntenance s hutdown i n Apri l , whi ch meant we were abl e to capi tal ise on heal thy margi ns for the
remai nder of the year. Full credi t for s tayi ng focus ed on worki ng s afel y goes to our team of 500 hard-worki ng
empl oyees and contractors .”
PERFORMANCE HIGHLIGHTS
 Operati ng revenue of $354m (2015: $446m), and s trong cos t control del i vered an NPAT of $47m
(2015: $151m), outperformi ng the matri x rel eas ed to the market i n February 2016 and i n l i ne wi th
matri x rel eas ed i n Augus t 2016.
 GRM averaged USD 6.47 per barrel (2015: USD 9.20 per barrel pri or to cap adj us tment).
 The Company retai ned i ts upl i ft over the Si ngapore Compl ex Margi n, averagi ng USD 3.22 per barrel
(2015: USD 4.45).
 Record annual crude i ntake of 42.7m barrel s, bettered the previ ous record (2015: 42.6m barrel s ).
 Unpl anned downti me at 0.85% (2015: 0.33%) was worl d-cl as s and allowed the refi nery to capi tal ise
on the heal thy margi n envi ronment.
 Cas h generati on from operati ons res ul ted i n a free cas h-fl ow of $47m.
DIVIDEND
The Company’s Directors have resolved to pay a fully i mputed fi nal di vi dend of 6 cents per s hare to be pai d on
30 March 2017, wi th a record date of 16 March 2017. Wi th an i nteri m di vi dend of 3 cents pai d i n September,
the total di vi dend payment for the year i s 9 cents.
OUTLOOK

Said Post: “Thi s s trong res ul t s hows that operati onal rel i ability, qual ity fuel s producti on and purs ui ng revenue
growth are cri ti cal to conti nui ng to del i ght our cus tomers and to maxi mi s e returns from a heal thy
margi n envi ronment. Whi l e we are above the upper l i mi t of our target debt, we bel i eve payment of a 6 cps
di vi dend bal ances our des ire to prudentl y manage the Company and provi de an adequate return
to shareholders.”

ENDS
Further i nformati on:
Greg McNei l l
Communi cati ons and External Affai rs Manager
T: 094325115; M: 021 873623; E: greg.mcnei l l @refi ni ngnz.com