Throughput and Margin Report -January-February 2018

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 8311 Fax: +64 9 432 8035 Email: corporate@refiningnz.com www.refiningnz.com
20 March 2018
Announcement to NZX
Refining NZ Throughput and Margin Report for January/February 2018
Refining NZ achieved a Gross Refinery Margin
1)
(GRM) of USD 7.54 per barrel for the January/February
period and captured Processing Fee income of NZD 50.8 million for the period. This GRM was USD 0.71
per barrel higher than the November/December 2017 GRM of USD 6.83 per barrel even though the
Singapore Dubai complex margin fell by USD 0.30 per barrel. Key drivers for this good result include the
increased 2018 freight uplift and the benefits being realised from our growth initiatives.
Throughput for the January/February period was 7.0 million barrels supported by 100% availability of all
major process units.
The Singapore Dubai complex margin for the January/February period was USD 3.37 per barrel, down from
the USD 3.67 per barrel margin for the November/December period. Refining NZ’s uplift over the
Singapore Dubai complex margin was USD 4.17 per barrel in January/February, an increase of USD 1.01
per barrel compared to November/December.
The average exchange rate for the January/February period was USD/NZD 0.73.
Appendix I shows further information on throughput, margin and refining income.
Historical Analysis
A five year history of Throughput, Margins and Processing Fees is attached as Appendix II and can also be
found on the company’s website: www.refiningnz.com

Notes:
1. The information provided in this announcement relates to refining operations only. Revenue from pipeline or
other activities is not included.
2. The Processing Fee results reported in this announcement are subject to change due to post announcement
price updates and independent audit.
3. Refining NZ’s Gross Refining Margin is defined as the typical market value of the products produced minus the
typical market value of the feedstock used, expressed per barrel of feedstock used. The margin incorporates
the cost of the hydrocarbon used for fuel and incurred as process losses.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 8311 Fax: +64 9 432 8035 Email: corporate@refiningnz.com www.refiningnz.com
Appendix I – Year to date: 2018
Throughput, Margin and Refining Income

Note: The GRM for a period may be above or below the Cap of USD 9.00 per barrel due to previous year price updates, which
are not subject to the Floor/Cap in the current year
Totalper bbl
Jan/FebThroughputBarrel s (mi l l i on)7.01
Gross Refi ni ng Margi nUSD (mi l l i on)52.87.54
Gross Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)52.87.54
Interi m Cap adjustment NZD (mi l l i on)0.0
Processi ng Fee (after Fl oor/Cap)USD (mi l l i on)37.05.28
Processi ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)50.8
Processi ng Fee (after Fl oor/Cap)NZD (mi l l i on)50.8

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 8311 Fax: +64 9 432 8035 Email: corporate@refiningnz.com www.refiningnz.com
Explanatory Note
Throughput
Throughput is the volume of feedstock intake, comprising crude oil, residues, natural gas and blendstock,
measured in barrels. One barrel equates to approximately 159 litres.
Gross Refining Margin
The Gross Refining Margin is calculated in USD as the difference between the value of products and the cost
of feedstock for each refining customer. The value of products use Singapore quoted prices adjusted for
New Zealand quality and the cost of importing those products to New Zealand. Feedstocks are valued using
the notional market values adjusted for the cost of getting the feedstock to the refinery. The Gross Refining
Margin incorporates the cost of hydrocarbon used as fuel and incurred as process losses.
Typically, Refining NZ has an uplift over the Singapore complex margins of around USD 3.00 to 4.00 per
barrel. The value of the uplift varies due to fluctuations in freight rates, product quality premia, crude
market premia and operational performance. Product quality premia are the cost differentials between
products made to New Zealand quality and products made to the quality that applies to quoted prices in
Singapore. Crude market premia are the cost differences between the crude types actually processed at
Refining NZ and Dubai (used as basis for the Singapore complex margins).
Margin Cap/Fee Floor Adjustment
The processing agreements with our customers contain both Floor and Margin Cap clauses, both effective
over a full calendar year.
The Fee Floor is the minimum Processing Fee due, for a calendar year, up to a current maximum of NZD 134
million. If the year-to-date Processing Fee is below the pro-rata Fee Floor, then an interim pro-rata Fee
Floor payment is made by the Customers. Should the Processing Fee exceed the Fee Floor in future months
any pro-rata Fee Floor payments that have been made are repaid to the Customers.
The Margin Cap limits the Gross Refining Margin for each customer to a maximum of USD 9.00 per barrel
over the calendar year. Should the Gross Refining Margin fall below the Cap in future months any pro-rata
Cap reductions that have been made are repaid by the Customers.
The Cap and the Floor are subject to year-to-date adjustments.
Any balance remaining at the end of the year cannot be carried over to the next year.
Gross Refining Margin after Cap/Floor
The Gross Refining Margin adjusted for any impacts of the Cap or Floor.
Processing Fee
The Processing Fee is 70% of the Gross Refining Margin after any adjustment for the Cap or Floor. The
Processing Fee is paid by our customers in NZD.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 8311 Fax: +64 9 432 8035 Email: corporate@refiningnz.com www.refiningnz.com
Appendix II - Historical Analysis
Intake/Production, Gross Refining Margin and Processing Fee

20142015201620172018
Ja n/Fe bBa rre l s 000's6,7407,0566,8267,1607,011
RNZ USD GRM pe r ba rre l
1)
3.869.917.966.587.54
Si nga pore Duba i Compl e x GRM0.705.404.953.423.37
Upl i ft vs . Si nga pore Duba i Compl e x
3)
3.164.513.013.164.17
NZD Proce s s i ng Fe e (mi l l i on)
2) 4)
22.059.657.045.950.8
Ma r/AprBa rre l s 000's6,1467,4117,4715,140
RNZ USD GRM pe r ba rre l
1)
-2.848.771.849.35
Si nga pore Duba i Compl e x GRM1.364.823.183.02
Upl i ft vs . Si nga pore Duba i Compl e x
3)
-4.203.95-1.346.33
NZD Proce s s i ng Fe e (mi l l i on)
2)
20.762.314.848.1
Ma y/JunBa rre l s 000's6,9766,4166,8377,755
RNZ USD GRM pe r ba rre l
1)
3.488.556.267.63
Si nga pore Duba i Compl e x GRM0.104.242.132.90
Upl i ft vs . Si nga pore Duba i Compl e x
3)
3.384.314.134.73
NZD Proce s s i ng Fe e (mi l l i on)
2)
21.148.943.358.4
Jul /AugBa rre l s 000's6,2987,5196,8337,511
RNZ USD GRM pe r ba rre l
1)
6.757.666.208.87
Si nga pore Duba i Compl e x GRM-0.552.521.864.70
Upl i ft vs . Si nga pore Duba i Compl e x
3)
7.305.144.344.17
NZD Proce s s i ng Fe e (mi l l i on)
2)
21.363.541.363.6
Se pt/OctBa rre l s 000's6,3887,2217,2516,816
RNZ USD GRM pe r ba rre l
1)
7.549.477.499.31
Si nga pore Duba i Compl e x GRM2.545.123.184.73
Upl i ft vs . Si nga pore Duba i Compl e x
3)
5.004.354.314.58
NZD Proce s s i ng Fe e (mi l l i on)
2)
21.071.852.562.2
Nov/De cBa rre l s 000's7,1277,0177,4477,342
RNZ USD GRM pe r ba rre l
1)
9.9810.829.206.83
Si nga pore Duba i Compl e x GRM4.486.374.193.67
Upl i ft vs . Si nga pore Duba i Compl e x
3)
5.504.455.013.16
NZD Proce s s i ng Fe e (mi l l i on)
2)
62.473.067.650.7
TotalBarrels 000's39,67642,63942,66541,7247,011
USD GRM per barrel
1)
4.969.206.478.027.54
NZD Processing Fee (million)
2)
168.4379.2276.6328.950.8
YTD Cap adjustment14.4
NZD Processing Fee (million)
1)
1) Excl ude s Fe e Fl oor/Ca p a djus tme nt
2) I ncl ude s Fe e Fl oor/Ca p a djus tme nt
3) RNZ upl i ft vs . Si nga pore Duba i Compl e x GRM i s i n USD pe r ba rre l
4) Ja n/Fe b 2017 e xcl ude s a pri or pe ri od a djus tme nt of ($1.5m)