Throughput and Margin Report for November/December 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
17 January 2019
Announcement to NZX
Refining NZ Throughput and Margin Report for November/December 2018
Processing Fee income for the November/December period was NZD 49.2 million, underpinned by a Gross
Refinery Margin
3)
(GRM) of USD 6.53 per barrel for the period and throughput of 7.31 million barrels. This
performance was very similar to the same period in 2017. Total refinery throughput for the second half of
2018 was the highest ever in the refinery’s history and the refinery to Auckland pipeline achieved a new
annual throughput record primarily due to its continued investment in capacity upgrading projects to help
meet growing Auckland demand.
The Singapore Dubai complex margin for the November/December period was USD 1.80 per barrel, 67
cents lower than the September/October period, impacted by crude oil price volatility and low gasoline
margins. However, Refining NZ’s November/December uplift over the Singapore Dubai complex margin
was strong at USD 4.73 per barrel. Refining NZ’s balanced product slate and locational advantage enabled
it to achieve a healthy margin notwithstanding current global pressure on gasoline margins.
The average exchange rate for the November/December period was USD/NZD 0.68. Appendix I shows
further information on throughput, margin and refining income.
Natural Gas Update
Refining NZ has executed a binding gas supply contract with a first-tier gas reseller that delivers most of
its 2019 requirements, subject to gas field maintenance planned in April which the gas producer expects
to complete successfully. Nevertheless, Refining NZ continues to build a gas portfolio, will make up any
shortfall through firing of liquid fuels and does not expect any material impact on the Company.
Crude Shipping Project
Following further discussions with interested parties, the Environment Court has confirmed the resource
consents issued to Refining NZ for its crude shipping dredging project, subject to minor revisions agreed
between parties to the appeal. The revisions are considered effective and workable and de-risk this
strategically important project which will increase the competitiveness of the refinery with fuel imported
from Asia. A date for dredging to commence has yet to be confirmed and is dependent on the successful
completion of monitoring activity on the harbour and a final investment decision from the Refining NZ
Board.

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

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
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
Gros s Refi ni ng Margi nUSD (mi l l i on)52.87.54
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)52.87.54
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)37.05.28
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)50.8
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)50.8
Mar/AprThroughputBarrel s (mi l l i on)6.96
Gros s Refi ni ng Margi nUSD (mi l l i on)47.56.82
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)47.56.82
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)33.24.77
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)45.8
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)45.8
May/JunThroughputBarrel s (mi l l i on)3.91
Gros s Refi ni ng Margi nUSD (mi l l i on)0.70.18
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)0.70.18
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)0.50.13
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)0.7
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)0.7
Jul/AugThroughputBarrel s (mi l l i on)7.62
Gros s Refi ni ng Margi nUSD (mi l l i on)52.26.86
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)52.26.86
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)36.64.80
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)54.3
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)54.3
Sep/OctThroughputBarrel s (mi l l i on)7.64
Gros s Refi ni ng Margi nUSD (mi l l i on)54.27.09
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)54.27.09
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)37.94.97
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)57.8
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)57.8
Nov/DecThroughputBarrel s (mi l l i on)7.31
Gros s Refi ni ng Margi nUSD (mi l l i on)47.76.53
Gros s Refi ni ng Margi n (excl udi ng Fl oor/Cap)USD (mi l l i on)47.76.53
Interi m Cap adj us tment NZD (mi l l i on)0.0
Proces s i ng Fee (after Fl oor/Cap)USD (mi l l i on)33.44.57
Proces s i ng Fee (excl udi ng Fl oor/Cap)NZD (mi l l i on)49.2
Proces s i ng Fee (after Fl oor/Cap)NZD (mi l l i on)49.2

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 premium, crude
market premium and operational performance. Product quality premium 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 premium 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)
22.059.657.045.950.8
Ma r/AprBa rre l s 000's6,1467,4117,4715,1406,958
RNZ USD GRM pe r ba rre l
1)
-2.848.771.849.356.82
Si nga pore Duba i Compl e x GRM1.364.823.183.023.75
Upl i ft vs . Si nga pore Duba i Compl e x
3)
-4.203.95-1.346.333.07
NZD Proce s s i ng Fe e (mi l l i on)
2)
20.762.314.848.145.8
Ma y/JunBa rre l s 000's6,9766,4166,8377,7553,910
RNZ USD GRM pe r ba rre l
1)
3.488.556.267.630.18
Si nga pore Duba i Compl e x GRM0.104.242.132.902.02
Upl i ft vs . Si nga pore Duba i Compl e x
3)
3.384.314.134.73-1.84
NZD Proce s s i ng Fe e (mi l l i on)
2); 5)
21.148.943.358.40.7
Jul /AugBa rre l s 000's6,2987,5196,8337,5117,615
RNZ USD GRM pe r ba rre l
1)
6.757.666.208.876.86
Si nga pore Duba i Compl e x GRM-0.552.521.864.702.57
Upl i ft vs . Si nga pore Duba i Compl e x
3)
7.305.144.344.174.29
NZD Proce s s i ng Fe e (mi l l i on)
2)
21.363.541.363.654.3
Se pt/OctBa rre l s 000's6,3887,2217,2516,8167,639
RNZ USD GRM pe r ba rre l
1)
7.549.477.499.317.09
Si nga pore Duba i Compl e x GRM2.545.123.184.732.47
Upl i ft vs . Si nga pore Duba i Compl e x
3)
5.004.354.314.584.62
NZD Proce s s i ng Fe e (mi l l i on)
2)
21.071.852.562.257.8
Nov/De cBa rre l s 000's7,1277,0177,4477,3427,307
RNZ USD GRM pe r ba rre l
1)
9.9810.829.206.836.53
Si nga pore Duba i Compl e x GRM4.486.374.193.671.80
Upl i ft vs . Si nga pore Duba i Compl e x
3)
5.504.455.013.164.73
NZD Proce s s i ng Fe e (mi l l i on)
2)
62.473.067.650.749.2
TotalBarrels 000's39,67642,63942,66541,72440,440
USD GRM per barrel
1)
4.969.206.478.026.31
NZD Processing Fee (million)
2)
168.4379.2276.6328.9258.7
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