Half Year Announcement 2019

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)



Results for announcement to the market
Name of issuer The New Zealand Refining Company Limited
Reporting Period 6 months to 30 June 2019
Previous Reporting Period 6 months to 30 June 2018
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$171,592 Up 16%
Total Revenue $171,592 Up 16%
Net profit/(loss) from
continuing operations
($3,503) Down 24%
Total net profit/(loss) ($3,503) Down 24%
Interim Dividend
Amount per Quoted Equity
Security
NZ$0.02
Imputed amount per Quoted
Equity Security
NZ$0.00777778
Record Date 12 September 2019
Dividend Payment Date 19 September 2019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.35 $2.41
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to attached commentary
Authority for this announcement
Name of person

authorised
to make this announcement
Denise Jensen, Company Secretary
Contact person for this
announcement
Greg McNeill
Contact phone number 094325115 or 021 873623
Contact email address greg.mcneill@refiningnz.com
Date of release through MAP

21/08/2019

Unaudited financial statements accompany this announcement.

---

OUR COMMITMENT TO
SUSTAINABILITY AND
COMMUNITY





OUR VISION FOR A
BRIGHTER
ENERGY FUTURE

OUR CUSTOMER PROMISE:
QUALITY, RELIABILITY,
COMPETITIVENESS





PERFORMANCE








HALF YEAR ANNOUNCEMENT




2019

REFINING NZ HALF YEAR ANNOUNCEMENT | 2
PERFORMANCE
HIGHLIGHTS
Excellent operational and safety performance backed by outstanding plant availability of 99.9% (1H18: 83.3%); no
recordable injuries and no tier 1 or tier 2 process safety incidents.

Crude intake of 21.2 million barrels was up on the same period last year (H1 2018: 17.9 million barrels).

Processing Fee income was 22% higher year-on-year due to higher throughputs and a favourable exchange rate
of USD0.67 (H1 2018: USD0.73).


The Company achieved an average uplift over the Singapore Complex Margin of USD 5.11 per barrel
(1H 2018: USD 2.42 per barrel) reflecting higher plant availability and a balanced product make.

Gross refining margin (GRM) averaged USD 5.31 per barrel (H1 2018: USD 5.65 per barrel).

First half operational performance was impacted by lower than expected refining margins, high electricity prices
and a number of one-off costs, which resulted in a Net loss after tax of $3.5 million (H1 2018: Net loss after tax
$2.8 million).

COMMENTARY
Refining NZ has reported a Net Loss after Tax of $3.5 million (H1
2018: $2.8 million) for the six months ended 30 June 2019.
Commenting, Chief Executive, Mike Fuge said the first half result
was marked by an excellent operational and safety performance at
the Refinery.
"The reliable running of the Refinery's processing units in the first six
months saw an increase in throughput, year-on-year reflecting the
fact that 2019 is a non-shutdown year for the Refinery.
“Our performance was negatively impacted by high electricity prices
in the market, weakness of refining margins since the beginning of
the year driven by low gasoline prices, and reduced access to natural
gas because of on-going maintenance on the Pohukura gas field.
This combination of factors meant that we were not able to
capitalise fully on the reliable running of our processing units."
The Gross Refining Margin averaged USD 5.31 per barrel to the end
of June, and was down slightly on the same period last year (H1
2018: USD 5.65 per barrel) on the back of higher than forecast
gasoline exports from China into the Asia Pacific region.




The Company's uplift over Singapore Complex Margins was strong
at an average of USD 5.11 per barrel (H1 2018: USD 2.42 per barrel),
assisted by excellent plant availability and a well-balanced product
mix. The Company also benefited from an improved exchange rate
with the average for the year to date at USD 0.67 (H1 2018: USD
0.73).
Said Fuge: "With the strengthening of refining margins in July there
are encouraging signs for the second half of the year and, with an
improving exchange rate in our favour, we expect our performance
to track in line with the 2019 profit matrix, despite the impact of
higher electricity prices on our business.

HEALTH AND SAFETY
The Company's health and safety performance in the first six
months was much improved with no recorded injuries, tier 1 or tier 2
process safety incidents.
"We achieved eight months without a recorded injury of any kind,
and nine months without a lost time injury.

REFINING NZ HALF YEAR ANNOUNCEMENT | 3
"For a high hazard industry such as ours this is an excellent
performance reflecting the focus of our health and safety action
plan on lifting our safety performance and the renewed
commitment of our people to staying safe on site.
The rollout of our Hauora Hikoi (safety walk) and Hauora Korero
(safety talk) as part of our E Tu Tangata programme, which
encourages our people to have greater responsibility for their own
personal safety and that of their workmates, is making a vital
contribution to the culture of safety at the Refinery”.
GOVERNMENT INQUIRIES
Following the draft report on the recent market study initiated by
the Commerce Commission into the retail fuel sector, the Company
is reviewing its findings and implications and will take the
opportunity to respond within the timeline provided by the
Commission.
Separately, the Government Inquiry into the 2017 pipeline outage
and improving the resilience of the fuel supply into the Auckland
region has presented its final report to the Minister of Energy and
Resources, and we await its release. As the owner and operator of a
critical piece of national energy infrastructure, we are committed to
working with the Government and industry on ways to improve
resilience.
DIVIDEND
The Company's Directors resolved to pay a fully imputed interim
dividend of 2 cents per share to be paid on 19 September 2019, with
a record date of 12 September 2019.
OUR CUSTOMER PROMISE:
QUALITY, RELIABILITY AND
COMPETITIVENESS
Continuing to leverage operational efficiencies and pursuing
attractive, margin enhancing initiatives is expected to lift
operational performance and competitiveness, while improving
returns to the Company's shareholders.
The Company's programme of targeted capital projects is making
good progress with the immediate focus on accelerating the 1-in-15
year tank maintenance programme. This investment in critical
infrastructure has seen the return of the Refinery's largest crude
tank back into service and fast tracking the cleaning of a second
tank.
"Accelerating our tank maintenance avoids the capital cost of a new
tank for the dredging project. As a consequence, the expected
capital cost of the dredging project has reduced from $60m-$70m to

1
IMO International Maritime Organisation - International Convention for the Prevention of Pollution from Ships (MARPOL)
$45m-$55m, including contingency and tank cleaning acceleration
costs. We continue to explore options to further optimise the
capital cost and benefits of the project, prior to a final investment
decision by the Board.”
"Construction of the sulphur solidification plant at the Refinery is
progressing to plan with the plant expected to be up and running by
the end of the year. Completing the project strengthens our
capability to produce cleaner fuels by continuing to remove 24,000
tonnes of sulphur per year from fuel products and will safeguard the
Refinery's ability to process a wide slate of sweet and sour crudes
over the medium term”.
Lloyds Register has recently issued a Certificate of Fitness that
enables the Company to increase the pressure on the Refinery to
Auckland pipeline (RAP), from 75 to 82 bar. This will increase the
throughput of the pipeline, ahead of the peak demand season
(December-January). Additionally, the Company is continuing to
explore the use of Drag Reducing agent (DRA) on the RAP pipeline,
with a trial due to begin in October. DRA could, subject to a
successful trial, increase capacity on this critical piece of
infrastructure by up to 15%, and further contribute to the resilience
of fuel supply into Auckland.
"We are maintaining a relentless focus on managing our cost base,
despite the impact of higher electricity costs and one-off costs in the
first half, relating predominantly to the Government Inquiries,
renewal of the Refinery’s resource consents and the strategic review
by the Board and Management team. Looking ahead, we expect to
see operating costs (excluding pass-through costs for natural gas,
sulphur and carbon) reduce in the second half of the year.
"Separately, our team has been developing the Company's long
term asset management plan, details of which are included in the
investor presentation attached to this release," said Fuge.
OUR COMMITMENT TO
SUSTAINABILITY AND
COMMUNITY
The Company is continuing to lift its environmental performance as
part of our commitment to be world class in this space.
“We are reviewing options and working with customers and the
Government to meet the requirements of the IMO
1
MARPOL
regulations aimed at reducing the sulphur content of fuel oil used in
shipping from 3.5% to 0.5%.
As part of the Company’s cultural safety programme, E Tu Tangata,
a commitment was made tying safety performance to support for
community initiatives nominated by Refining NZ employees.

REFINING NZ HALF YEAR ANNOUNCEMENT | 4
“In June we recognized our good safety performance in the first four
months of the year with a donation to Whangarei based
organisation, Food for Life. Our support ensures that Food for Life
can continue to provide much needed support to primary school
pupils in Whangarei and further north”.
OUR VISION FOR A BRIGHTER
ENERGY FUTURE
STRATEGY
The development of a new business strategy focused on generating
further value from the refining business, leveraging existing assets
and capabilities and building on our core strengths through highly
economic projects, is continuing apace.
Additionally, the Company is focussed on growing value from the
infrastructure and the pipeline assets which are of critical
importance to the security of New Zealand’s fuel supply.
Said Fuge: "A key contributor to that strategy will be our plans to
generate carbon-free electricity from a solar farm adjacent to the
Refinery on land belonging to the Company. The 31-hectare solar
farm would be New Zealand's largest solar facility."
"The early work on the economics of the project has shown that the
solar farm could reduce the cost of the Refinery's electricity
consumption by around $3 million to $4million per year.
Progressing solar is contingent on obtaining a resource consent for
the project and final approval from the Refining NZ Board later in
the year. "
Fuge confirmed that the Company will be holding a Strategy day for
investors on the 24th October.
OUTLOOK
Said Fuge: "The strength of our refining business is borne out by the
reliable operation of the Refinery in the first half or the year, and the
continued safe working practices by everyone in our talented, and
committed team. That will put us in good stead as we expect
conditions in the refining sector to improve in the second half of the
year."






As the owner and operator of critical infrastructure within the New
Zealand fuels supply chain, we are continuing to advance our
growth plans and to transition our refining and infrastructure assets
into a sustainable, resilient energy business, in a future low
emissions economy. Our exploration into solar is a tangible first
step in this exciting journey, and we expect it will make a valuable
contribution to Northland and to New Zealand”.


ENDS
Further information:
Greg McNeill, T: 094325115 M: 021 873623 E:
greg.mcneill@refiningnz.com

REFINING NZ HALF YEAR ANNOUNCEMENT | 5
GLOSSARY

Tier 1 Process Safety Event (API 754) –A tier 1 Process Safety
Event (PSE) is an unplanned or uncontrolled release of any material,
including non-toxic and non-flammable, from a process which
results in one or more of the following: A LTI and/or fatality; A fire or
explosion resulting in greater than or equal to $25,000 of direct cost
to the company; A release of material greater than the threshold
quantities given in Table 1 of API 754 in any one-hour period; A
officially declared community evacuation or community shelter-in-
place.

Tier 2 Process Safety Event (API 754) –A tier 2 Process Safety
Event (PSE) is an unplanned or uncontrolled release of any material,
including non-toxic and non-flammable, from a process which
results in one or more of the following: A recordable injury; A fire or
explosion resulting in greater than or equal to $2,500 of direct cost
to the company; A release of material greater than the threshold
quantities given in Table 2 of API 754 in any one-hour period.

---

Distribution Notice

Updated as at 8 May 2019


Please note: all cash amounts in this form are provided to 8 decimal places

Section 1: Issuer information
Name of issuer The New Zealand Refining Company Limited
Financial product name/description Ordinary shares
NZX ticker code NZR
ISIN (If unknown, check on NZX
website)
NZNZRE0001S9
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies No
Record date 12 September 2019
Ex-Date (one business day before the
Record Date)
11 September 2019
Payment date (and allotment date for
DRP)
19 September 2019
Total monies associated with the
distribution
1

$6,251,529.06
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.02777778
Total cash distribution
3
$0.02
Excluded amount (applicable to listed
PIEs)
$N/A
Supplementary distribution amount $0.00352941
Section 3: Imputation credits and Resident Withholding Tax
4

Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.00777778

1
Based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross distribution for the purposes of this form. If the distribution is fully
imputed the imputation credits will be 28% of the gross distribution with remaining 5% being RWT. This does not constitute advice
as to whether or not RWT needs to be withheld.

Resident Withholding Tax per
financial product
$0.00138889
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
- -
Date strike price to be announced (if
not available at this time)
-
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
-
DRP strike price per financial product
-
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
-
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Denise Jensen, Company Secretary
Contact person for this
announcement
Denise Jensen
Contact phone number 09 4325100
Contact email address CompanySecretary@refiningnz.com
Date of release through MAP

21/08/2019

---

REFINING NZ
ANALYST PRESENTATION
21 AUGUST 2019
INVESTOR
PRESENTATION

REFINING NZ
ANALYST PRESENTATION
2
DISCLAIMER
•This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred to as “Refining
NZ”).
•Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency fluctuations, regulatory changes, environmental
factors, production results, demand for Refining NZ’s products or services and other conditions. Forward looking statements are based on management’s current expectations and assumptions and
involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materiallyfrom those expressed or implied in these statements.
•Forward looking statements include among other things, statements concerning the potential exposure of Refining NZ to market risk and statements expressing management’s expectations, beliefs,
estimates, forecasts, projections and assumptions. Forward looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”,
“intend”, “may”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similarterms and phrases.
•Readers should not place undue reliance on forward looking statements. Forwardlooking statements should be read in conjunction with Refining NZ’s financial statements released with this
presentation. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice or investment advice or a recommendation to acquire Refining
NZ’s securities, and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, you should consider the
appropriateness of the information having regard to your own objectives, financial situation and needs and consult an NZX Firm or solicitor, accountant or other professional adviser if necessary.
•In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement. RefiningNZ does
not guarantee future performance and past performance information is for illustrative purposes only. To the maximum extent permitted by law, the directors of Refining NZ,
Refining NZ and any of its related bodies corporate and affiliates, and their offices, partners, employees, agents, associates and advisers do not make any representation or warranty, express or
implied, as to accuracy, reliability or completeness of the information in this presentation, or likelihood of fulfilment of anyforward-looking statement or any event or results expressed or implied in any
forward-looking statement, and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).
•Except as required by law or regulation (including the NZX Listing Rules), Refining NZ undertakes no obligation to provide any additional or updated information
whether as a result of new information, future events or results or otherwise.
•Forward looking figures in this presentation are unaudited and may include non-GAAP financial measures and information. Not all of the financial information (including any
non-GAAP information) will have been prepared in accordance with, nor is it intended to comply with: (i) the financial or other reporting requirements of any regulatory body;
or (ii) the accounting principles generally accepted in New Zealand or any other jurisdiction with IFRS. Some figures may be rounded and so actual calculation of the figures may differ from the
figures in this presentation. Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information
presented by other entities. Non-GAAP financial information in this presentation is not audited or reviewed.
•Each forward looking statement speaks only as of the date of this announcement,21 August 2019.

REFINING NZ
ANALYST PRESENTATION
AGENDA
PERFORMANCE
LOOKING AHEAD
STRATEGIC INITIATIVES
STRATEGIC DIRECTION

REFINING NZ
ANALYST PRESENTATION
Excellent safety and operational performance
Refinery margins weaker than expected
Strong contribution from distribution segment
Positive free cash flow resulting in 2 cps dividend
AGENDA
PERFORMANCE
LOOKING AHEAD
STRATEGIC INITIATIVES
STRATEGIC DIRECTION

REFINING NZ
ANALYST PRESENTATION
5
HIGHLIGHTS
1 Per 200,000 hours, rolling 12-month
2For a full definition please refer to Glossary in Appendix I
Seeour Interim FinancialStatements for further detail, available at http://www.refiningnz.com/investor-centre.aspx
3Free cash flow calculated as operatingcash flowminus actual capital expenditures
4For a definition, please see slide 8.
HY 18HY19
PersonalLTIF
[1,2]
0.470.14
Process
Tier 1 (>US$25k)
[2]
20
Tier 2 (>US$2.5k)
[2]
20
Releases outside consent11
Throughput
Mbbl
17.921.2
RAP Throughput
Mbbl
10.410.3
Operational availability
%
83.399.9
Singapore complex margin[4]
US$/bbl
3.230.20
EBITDA
[2]
NZ$M
50.054.1
NPAT
NZ$M
(2.8)(3.5)
Exchange rate
US$/NZ$
0.730.67
Gross Refining Margin
USD 5.31
PER
BARREL
5.65 per barrel in HY18
TRCF
[1,2]
0.27
0.75 in HY18
$
Free Cash Flow
[3]
NZD18.2
NZD(75)m in HY18
M
EBITDA
NZD54
NZD50m in HY18
M
Excellent operational and safety performance

REFINING NZ
ANALYST PRESENTATION
6
E TU TANGATA
Delivers excellent safety performance
Standing in the gap for the safety and wellbeing of our workmates:
•Hauora Hikoiand Korero –fostering a culture of safety
•Over 4,000 walks and talks deliveredin 1H19
•High performing individualsrecognised with safety and wellbeing award (Kaihautu)
•10 months without an LTI; Lowest TRCF since 2011
Kaihautuaward for safety and wellbeing leadership

REFINING NZ
ANALYST PRESENTATION
7
The above chart excludes any movementin pass through costs such as natural gas, sulphur and carbon. See our InterimFinancial Statements for further detail, available at http://www.refiningnz.com/investor-
centre.aspx
(*) Includes terminallingand handling fees.
(**)Includes Government inquiry, strategic review and site consent renewal
EBITDA UP 8%
Fully imputed interim dividend of 2 cps

REFINING NZ
ANALYST PRESENTATION
8
STRONG UPLIFT OVER LOW
SINGAPORE MARGIN
Driven by optimised product make and strong operational
uptime
* The Singapore Complex Margin is calculated using PlattsDubai crude and Singapore product prices, VLCC freight to Singapore, and the International Energy Agency’s Dubai complex refinery yields adjusted for fuel & loss.
UPLIFT
US$/BARREL
HY 18HY19Delta
Freight2.162.00(0.16)
Product quality0.950.65(0.30)
Plant availability(2.60)(0.14)2.46
Crude cost and yield1.912.600.69
TOTAL2.425.112.69
201420152016201720182019
H1
2018
H1
2019
H1

REFINING NZ
ANALYST PRESENTATION
9
BUSINESS SEGMENTS
Investing in capability, reliability, cleaner fuels
1962
Construction
begins
1964
First fuel
produced
1982
Wiri oil
terminal,
RAP approved
1986
Hydrocracker
installed
2000
Wellsford IPS
2005
Future Fuels
project
2014
New Plymouth
laboratory
established
2017
RAP capacity
upgrade
(Phases I &II)
1985
RAP
commissioned
1999
IPL
established
BP customer.
2002
Other oil
companies
customers
2009
Point Forward
project
1961
RNZ
Established
OUR FUTURE IS IN SUPPORTING NZ’s TRANSITION TO A LOWER CARBON FUTURE
2015
TeMahi Hou
project (CCR)
1 Refer Glossary (Appendix I)

REFINING NZ
ANALYST PRESENTATION
10
REFINING
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
20052006200720082009201020112012201320142015201620172018
NZ$000
REFINING REVENUE AND EBITDA
EBITDARevenue
Processing fee based on gross refining margin
and linked to USD exchange rate
Despite cyclical historical results, strong cash flow allowing funding of
significant capital projects and dividends
Favourablesupply and demand outlook over medium term
Expected net benefit from MARPOL
Potential upsidefrom regional refinery closures and refinery outages
Corecompetitive advantages are location and high reliability
Cyclical, but good cash flows over the longer term
1 Refer Glossary (Appendix I)
2 Free cash flow calculated as operatingcash flowminus actual capital expenditures

REFINING NZ
ANALYST PRESENTATION
11
DISTRIBUTION
0
10,000
20,000
30,000
40,000
50,000
60,000
20052006200720082009201020112012201320142015201620172018
NZ$000
DISTRIBUTION REVENUE AND EBITDA
EBITDARevenue
Positioning the main line valve at KumeuPump Station
Stable and growing returns expected
Multi-product pipeline supplying Auckland
Transports 52%of refinery’s production and 37% of NZ’s fuels demand
We have invested to meet significant volumegrowth over the last 5
years
Drag reducing agent (DRA) to be trialled in 2H 2019
15% additional capacity increase possible from DRA, subject to a
successful trial
1 Refer Glossary (Appendix I)
2 Free cash flow calculated as operatingcash flowminus actual capital expenditures

REFINING NZ
ANALYST PRESENTATION
12
LABORATORY
0
2,000
4,000
6,000
8,000
10,000
20052006200720082009201020112012201320142015201620172018
NZ$000
IPL REVENUE AND EBITDA
EBITDARNZ RevenueOther Revenue
Growing revenue beyond the refinery
Specialist fuels, biofuels and other lab testing services
Established in 1999, and fully owned by Refining NZ since 2016
Services provided to leading oil companies,governmental agencies
and international terminals
Employs~45 staff in two labs(Marsden Point, New Plymouth)
Strong growth in the last decade
EBITDA and Revenue CAGR
1
of 6% since 2005
1 Refer Glossary (Appendix I)
2 Free cash flow calculated as operatingcash flowminus actual capital expenditures

REFINING NZ
ANALYST PRESENTATION
PERFORMANCE
LOOKING AHEAD
STRATEGIC INITIATIVES
STRATEGIC DIRECTION
Asian demand growth is expected to outstrip refining
capacity additions (until at least 2029)
FGE expects:
–Mogasmargins to improve in 2020 (caveat: Chinese
exports and a global slowdown)
–Jet and diesel margins to strengthen further in Q4 2019
–High sulphur fuel oil margins likely to fall sharply in
Q4 2019, with a gradual recovery from Q2 2020
RNZ therefore expects a net margin benefit from IMO
market disruption

REFINING NZ
ANALYST PRESENTATION
14
GASOLINE
-200
-150
-100
-50
0
50
100
150
200
250
300
20192020
kb/d
Gasoline S/D Balance (y-o-y change)
DemandSupplyBalance
8
9
10
11
12
13
14
15
16
17
18
Singapore Light Distillate Inventories (mmb)
2013-20175-Year Average20182019
Weaker gasoline margins in 1H19: High stocks, reduced
demand and Chinese exports
FGEOUTLOOK:
•2019 global gasoline demand growth > supply growth
•WeakerUS summer gasoline demand in 2H19.Margins
may reduce before support from IMO2020 effects
•Higher Chinese exports and a global slowdown may limit
the IMO2020 gasoline upside in 2020
Market finely balanced
Source:
FGE is an independent global energy consultancy that provides research,
analysis and advisory services on the up-and downstream oil and gas markets.

REFINING NZ
ANALYST PRESENTATION
15
JET FUEL AND DIESEL
-300
-100
100
300
500
700
900
1,100
1,300
1,500
20192020
kb/d
Middle Distillates S/D Balance (y-o-y Change)
DemandSupplyBalance
FGEOUTLOOK:
•Global middledistillate demand to outstrip supply growth
•Middle distillate margins strengthening as low sulphur stocks
build ahead of IMO2020
RNZ expects to benefit from IMO2020
Source:
FGE is an independent global energy consultancy that provides research,
analysis and advisory services on the up-and downstream oil and gas markets.

REFINING NZ
ANALYST PRESENTATION
16
HIGH SULPHUR FUEL OIL
-1,250
-750
-250
250
750
20192020
kb/d
Fuel Oil S/D Balance (y-o-y change)
DemandSupplyBalance
-29
-24
-19
-14
-9
-4
1
6
Singapore 380cst HSFO Cracks vs Dubai (US$/bbl)
FGEOUTLOOK:
•High sulphur fueloil margins buoyed by: Middle East power
demand, residue upgrade projects, sanctions, lighter global
crude slate
•Low sulphur fuel oil stocks building ahead of IMO2020 support
margins
•Expect high sulphur fuel oil margin recovery from Q2 2020
IMO2020 impacts but expect recovery
Source:
FGE is an independent global energy consultancy that provides research,
analysis and advisory services on the up-and downstream oil and gas markets.

REFINING NZ
ANALYST PRESENTATION
17
ASIA REFINING CAPACITY ADDITIONS
LAG DEMAND GROWTH
77%
78%
79%
80%
81%
82%
83%
84%
85%
86%
87%
-600
-400
-200
0
200
400
600
800
1,000
1,200
Kb/cd
Incremental CDU Capacity vs Demand Growth
Incremental CDU CapacityIncremental Refinery Product DemandImplied Refinery Utilization (%)
Forecasts support refinery utilisation and margins
(with IMO2020 and Chinese export caveats)
Source:
FGE is an independent global energy consultancy that provides research,
analysis and advisory services on the up-and downstream oil and gas markets.

REFINING NZ
ANALYST PRESENTATION
18
SINGAPORE PRODUCT MARGIN OUTLOOK
-25
-20
-15
-10
-5
0
5
10
15
20
25
US$/bbl
Selected Product Cracks (Singapore) vs Dubai
(US$/bbl)
Mogas (92 RONC)Diesel, 10 ppm SHSFO (380 cSt)
FGEOUTLOOK:
•Gasoline margin is expected to improve but then pressured at end
of the decade by higher engine efficiency and eventually by electric
vehicles
•IMO2020 supports diesel margins
•High Sulphur fuel oil margins recover quickly from a sharp fall with
increasing scrubber installations on ships
Forecast supportive of RNZ’s GRM
Source:
FGE is an independent global energy consultancy that provides research,
analysis and advisory services on the up-and downstream oil and gas markets.

REFINING NZ
ANALYST PRESENTATION
19
NZ JET FUEL DEMAND
Strong growth projected
Demand projection aligned with Auckland Airport outlook
Refinery to Auckland Pipeline –key asset to meet growing
Auckland demand
RNZ continues to invest in capacity to meet demand
Demand outlook based on 2019 Hale &Twomeyhigh/low growth projections
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010201520202025
ActualHigh GrowthLow growth
Jet Fuel New Zealand Demand
Million Litres

REFINING NZ
ANALYST PRESENTATION
20
2019 PROFIT MATRIX REMAINS
UNCHANGED
2H 2019 EXPECTATIONS
•Strong throughputs
•Capitalspend on budget
•Opexmanaged
LONGER TERM
•Baseline opexof $180m in 2020 (excluding
inflation) or $182-185mwith strategic
initiatives
Pass through costs include natural gas, sulphur and carbon
One-offs include Government inquiry, Strategic Review and Resource Consent

REFINING NZ
ANALYST PRESENTATION
21
LONG TERM SUSTAIN CAPITAL
FUNDING PLAN
Capital spend under control
Asset management process
•Phase I of long term strategic asset
management plan nearing completion
•Alignmentto ISO 55001:2014
•Long term reduction in capital spend to
below depreciation achieved
Funding plan highlights
•Overall spend driven by shutdown cycles
•Tank maintenance reducing from 2023
Next 3 years: Expected higher
than average due to tank
programme, mandatory first
inspection of TeMahi Houproject
and catalyst replacement
The above chart excludes growth projects such as, Dredging and MarangaRa, where the investment decision will be economically
justified, with alternative financing explored.

REFINING NZ
ANALYST PRESENTATION
Sulphur project well into construction
Short payback projects are delivering
Dredging optimisation continues
“MarangaRa”solar farm –final investment
decision expected in Q4 2019
AGENDA
PERFORMANCE
LOOKING AHEAD
STRATEGIC INITIATIVES
STRATEGIC DIRECTION

REFINING NZ
ANALYST PRESENTATION
23
SULPHUR FORMING
Facility under construction
Commissioning Q4 2019
DELIVERING VALUE
Roof being installed on Plant BuildingEquipment in Plant Building
Silo upper section coating completedSilo support structure being assembled
Strengthens our capability to make cleaner fuels

REFINING NZ
ANALYST PRESENTATION
24
INITIATIVES IN PROGRESSIDEAS
2019
Q4
2020
Q1 Q2 Q3 Q4
2021
Q1 Q2 Q3 Q4
GRM uplift
(US cents
per barrel)
Bitumen production capacity
Export fuel oil infrastructure
Bitumen modernisation
Steam system optimisation
Water recycling
Diesel cold-flow improver
Naphtha optimisation
BRU de-bottlenecking
RAP automation (Phase II)
Crude demulsifierpre-dosing
RAP DRA trial
Light naphtha bypass
CCR operational flexibility
Hydrogen optimisation
Jet fuel tank conversion
0.5
1
3
2
1
FILLING THE FUNNEL
Octane optimisation
Objective of pursuing attractive, short payback projects
TBA
TBA

REFINING NZ
ANALYST PRESENTATION
25
DREDGING
Optimisation continues
Estimated cost $45m–55m (no tank)vs previous
$60m–70m
Economics remain attractive
Project optimisation discussions continue with
customers
Reviewing phasing of tank maintenance to accelerate
dredging and avoid cost of new tank
Finalinvestment decision expected to be taken Q4
2019/Q1 2020
COST
PRODUCT / CRUDE
PRODUCT
VALUATION
CRUDE OIL
CURRENT
VALUATION
CRUDE OIL
POST
DREDGING
VALUATION
GRM
uplift
Current
GRM
FREIGHT

REFINING NZ
ANALYST PRESENTATION
26
MARANGA RA –“RISING SUN”
Located on land adjacent to the refinery –a 31ha
Estimated cost of ~$36m –39m
[1]
Supply ~10% of refinery’s consumption
Attractive infrastructure returns
Expected cost savings of $3 –$4 million p.a.
FinalInvestment Decision expected by end of
2019 –construction in 2020
26MW solar farm –New Zealand’s largest
[1] Funded via a combination of non-recourse project debt funding and equity
of $12m –$15m from the Company
Illustrative only

REFINING NZ
ANALYST PRESENTATION
Delivering now –Preparing for the future
Sustainability –contributing to a lower emissions economy
–Investment in emissions reduction
–Ready and willing to invest further
Community –programme of pro-active engagement
–Charitable donations
–Promoting solar
–Digital learning
Regulatory update
AGENDA
PERFORMANCE
LOOKING AHEAD
STRATEGIC INITIATIVES
STRATEGIC DIRECTION

REFINING NZ
ANALYST PRESENTATION
28
SUSTAINABILITY
Contributing to a lower emissions economy
Track record of investment in emissions reduction
•20% reduction in carbon intensity since 2008
•Investment in cleaner fuels –24,000 tonnes p.a. sulphur removed from fuels
since 2005
Ready and willing to invest further
•Pipeline of energy saving initiatives already identified
•Energyconservation partnership with EECA
•Expect further efficiencies
TeMahi Hou(CCR) has reduced CO
2
emissions by 120,000 tonnes pa
Energy Manager keeps a close eye on energy intensity of the process units

REFINING NZ
ANALYST PRESENTATION
29
COMMUNITY
Programme of pro-active engagement
TRC-free quarter celebrated by community donation
Charitable contributions match safety milestones
•Foodfor Life (healthy lunches to low decile schools)
•TaiTokerauEmergency Housing Charitable Trust
Promotingsolar in the community
•Solar installed at local marae, kohangareo
•Consulting widely on solar hydrogen plans
Supporting digital learning
•Online tutorials across 22 Northland schools hosted by Bream Bay College
Solar installed at local marae

REFINING NZ
ANALYST PRESENTATION
30
REGULATORY UPDATE
Proactive engagement
NZ ETS –post Negotiated GreenhouseAgreement
2022
Siteresourceconsents’ renewal –expiry 2022
Government inquiries:
•Pipeline outage and resilience
•Market fuel study –ComCom

REFINING NZ
ANALYST PRESENTATION
31
APPENDIX 1
Glossary
•LTIF–Lost time injury frequency (rolling 12 month per 200,000 hours)
•TRCF–Total recordable case frequency (rolling 12 month per 200,000 hours)
•Tier 1 Process Safety Event (API 754) –A tier 1 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-
toxic and non-flammable, from a process which results in one or more of the following: A LTI and/or fatality; A fire or explosion resulting in greater
than or equal to $25,000 of direct cost to the company; A release of material greater than the threshold quantities given in Table 1 of API 754 in any
one-hour period; A officially declared community evacuation or community shelter-in-place.
•Tier 2 Process Safety Event (API 754) –A tier 2 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-
toxic and non-flammable, from a process which results in one or more of the following: A recordable injury; A fire or explosion resulting in greater
than or equal to $2,500 of direct cost to the company; A release of material greater than the threshold quantities given in Table 2 of API 754 in any
one-hour period.
•EBITDA–Net Profit Before Finance Costs and added back Depreciation and disposal costs
•CAGR –compound annual growth rate

REFINING NZ
ANALYST PRESENTATION
21 AUGUST 2019
INVESTOR
PRESENTATION

---

REFINING NZ

INTERIM REPORT 2019
Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019

PAGE
Condensed Consolidated Interim Financial Statements
Condensed Consolidated Interim Income Statement 02
The income earned and operating expenditure incurred by the Refining NZ Group
during the six month period
Condensed Consolidated Interim Statement of Comprehensive Income 03

Items of income and operating expense not recognised in the income statement and
hence taken to reserves in equity
Condensed Consolidated Interim Balance Sheet 04

A summary of the Refining NZ Group assets and liabilities at the end of the six month period
Condensed Consolidated Interim Statement of Changes in Equity 06

Components that make up the capital and reserves of the Refining NZ Group and
the changes of each component during the six month period
Condensed Consolidated Interim Statement of Cash Flows 08

Cash generated and used by the Refining NZ Group
Basis of Preparation 09
Notes to the Condensed Consolidated Interim Financial Statements
10
PERFORMANCE 10
1 Operating revenue 10
2 Segment information 11
3 Related parties 13
DEBT AND EQUITY 14
4 Dividends 14
5 Loans and borrowings 15
OPERATING ASSETS AND LIABILITIES 16
6 Property, plant and equipment and intangibles 16
7 Capital commitments 17
8 Provisions 17
9 Cash and cash equivalents 18
10 Trade and other payables 19
11 Employee benefits 19
FINANCIAL RISK MANAGEMENT
21
12 Financial instruments 21
OTHER 23
13 Contingent assets and liabilities 23
14 Events after balance date 23
15 Adoption of NZ IFRS 16 ‘
Leases ’ 24
Corporate Directory 25
Condensed Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019
01

Condensed Consolidated Interim Income Statement
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
GROUPGROUP
30 JUNE 201930 JUNE 2018
NOTE$000$000
INCOME
Operating revenue
1, 2
169,413
147,029
Other income
2
2,179
1,152
TOTAL INCOME

171,592
148,181
EXPENSES
Purchase of process materials and utilities
51,220
37,735
Materials and contractor payments
15,776
13,792
Wages, salaries and benefits
29,653
28,899
Depreciation and disposal costs
52,137
46,216
Administration and other costs
20,893
18,323
TOTAL EXPENSES169,679
144,965
NET PROFIT BEFORE FINANCE COSTS1,913
3,216
FINANCE COSTS
Finance income
(24)
(63)
Finance costs
6,767
6,599
NET FINANCE COSTS6,743
6,536
Net loss before income tax
(4,830)
(3,320)
Add income tax
(1,327)
(498)
NET LOSS AFTER INCOME TAX(3,503)
(2,822)
ATTRIBUTABLE TO:
Owners of the Parent(3,503)
(2,822)
EARNINGS PER SHARE FOR PROFIT ATTRIBUTABLE TO
THE SHAREHOLDERS OF THE NEW ZEALAND REFINING COMPANY LIMITED
CENTSCENTS
Basic and diluted earnings per share
(1.12)
(0.90)
The above Condensed Consolidated Interim Income Statement is to be read in conjunction with the accompanying notes.
REFINING NZ INTERIM REPORT 201902

Condensed Consolidated Interim
Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
GROUPGROUP
30 JUNE 201930 JUNE 2018
NOTE$000$000
NET LOSS AFTER INCOME TAX(3,503)
(2,822)
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to the Income Statement
Defined benefit plan and medical scheme actuarial loss
11
(10,558)
(453)
Deferred tax on defined benefit plan and medical scheme
2,956
127
Total items that will not be reclassified to the Income Statement
(7,602)
(326)
Items that may be subsequently reclassified to the Income Statement
Movement in cash flow hedge reserve
(1,539)
(596)
Deferred tax on movement in cash flow hedge reserve
431
167
Total items that may be subsequently reclassified to the Income Statement (1,108)
(429)
TOTAL OTHER COMPREHENSIVE LOSS, AFTER INCOME TAX

(8,710)
(755)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, AFTER INCOME TAX(12,213)
(3,577)
ATTRIBUTABLE TO:


Owners of the Parent
(12,213)
(3,577)
The above Condensed Consolidated Interim Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
03

Condensed Consolidated Interim Balance Sheet
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
30 JUNE 201930 DEC 2018
NOTE
$000$000
ASSETS
Cash and cash equivalents
12
4,448
779
Trade and other receivables
12
149,822
152,712
Income tax receivable
9,896
1,394
Derivative financial instruments
12
3,632
6,249
Inventories
2,404
2,974
TOTAL CURRENT ASSETS170,202
164,108
NON-CURRENT ASSETS
Inventories
19,117
19,955
Derivative financial instruments
12
56
6
Property, plant and equipment
6
1,169,408
1,191,948
Right-of-use assets
6, 15
6,793
-
Intangibles
6
11,060
14,309
TOTAL NON-CURRENT ASSETS

1,206,434
1,226,218
TOTAL ASSETS

1,376,636
1,390,326
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
10
154,897
152,561
Borrowings
5
61,350
50,000
Lease liabilities
15
652
171
Employee benefits
11
7,881
9,948
Derivative financial instruments
12
764
1,300
TOTAL CURRENT LIABILITIES225,544
213,980
NON-CURRENT LIABILITIES

Deferred tax liabilities
126,247
131,289
Employee benefits
11
59,918
48,087
Provisions
8
12,520
10,866
Lease liabilities
15
5,511
2,303
Borrowings
5
198,621
208,601
Derivative financial instruments
12
5,081
5,564
TOTAL NON-CURRENT LIABILITIES407,898
406,710
TOTAL LIABILITIES633,442
620,690
NET ASSETS
743,194
769,636
REFINING NZ INTERIM REPORT 201904

Condensed Consolidated Interim Balance Sheet
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
The above Condensed Consolidated Interim Balance Sheet is to be read in conjunction with the accompanying notes.
GROUPGROUP
30 JUNE 201930 DEC 2018
NOTE$000$000
EQUITY
Contributed equity
265,771
265,771
Treasury stock
(960)
(969)
Employee share entitlement reserve
561
732
Cash flow hedge reserve
(1,568)
(460)
Retained earnings
479,390
504,562
TOTAL EQUITY
743,194
769,636
The Board of Directors of The New Zealand Refining Company Limited authorised these financial statements for issue on
20 August 2019.
For and on behalf of the Board:





S C Allen J B Miller
Director Director
05

Condensed Consolidated Interim Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
CONTRIBUTED
EQUITY
TREASURY
STOCK
EMPLOYEE SHARE
SCHEME ENTITLEMENT
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL EQUITY
GROUP
NOTE$000$000
$000$000$000$000
AT 1 JANUARY 2018
265,771 (678)
429 (6,116)533,369 792,775
COMPREHENSIVE INCOME
Net loss after income tax- -
- - (2,822)(2,822)
Other comprehensive income


Movement in cash flow hedge reserve- - - (596)- (596)
Defined benefit actuarial loss
11
- - - - (453)(453)
Deferred tax on other comprehensive income
- -
- 167 127 294
TOTAL OTHER COMPREHENSIVE LOSS, AFTER INCOME TAX
- -
- (429)(326)(755)
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments- -
151 - - 151
Treasury shares purchased- (291)- - - (291)
Unclaimed dividends written back- - - - (10)(10)
Dividends paid
4
- - - - (37,509)(37,509)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT
- (291)
151 - (37,519)(37,659)
AT 30 JUNE 2018
265,771 (969)
580 (6,545)492,702 751,539
AT 1 JANUARY 2019
265,771 (969)
732 (460)504,562 769,636
COMPREHENSIVE INCOME
Net loss after income tax
- -
- - (3,503)(3,503)
Other comprehensive income
Movement in cash flow hedge reserve
- -
- (1,539)- (1,539)
Defined benefit actuarial loss
11
- - - - (10,558)(10,558)
Deferred tax on other comprehensive income
- -
- 431 2,956 3,387
TOTAL OTHER COMPREHENSIVE LOSS, AFTER INCOME TAX- - - (1,108)(7,602)(8,710)
TRANSACTIONS WITH OWNERS OF THE PARENT


Equity-settled share-based payments
- -
121 - - 121
Shares vested to employees
- 292
(292)- - -
Treasury shares purchased
- (283)
- - - (283)
Unclaimed dividends written back
- -
- - - -
Dividends paid
4
- - - - (14,067)(14,067)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT- 9
(171)- (14,067)(14,229)
AT 30 JUNE 2019
265,771 (960)
561 (1,568)479,390 743,194
The above Condensed Consolidated Interim Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
REFINING NZ INTERIM REPORT 201906

CONTRIBUTED
EQUITY
TREASURY
STOCK
EMPLOYEE SHARE
SCHEME ENTITLEMENT
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL EQUITY
GROUP
NOTE$000$000
$000$000$000$000
AT 1 JANUARY 2018
265,771 (678)
429 (6,116)533,369 792,775
COMPREHENSIVE INCOME
Net loss after income tax- -
- - (2,822)(2,822)
Other comprehensive income


Movement in cash flow hedge reserve- - - (596)- (596)
Defined benefit actuarial loss
11
- - - - (453)(453)
Deferred tax on other comprehensive income
- -
- 167 127 294
TOTAL OTHER COMPREHENSIVE LOSS, AFTER INCOME TAX
- -
- (429)(326)(755)
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments- -
151 - - 151
Treasury shares purchased- (291)- - - (291)
Unclaimed dividends written back- - - - (10)(10)
Dividends paid
4
- - - - (37,509)(37,509)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT
- (291)
151 - (37,519)(37,659)
AT 30 JUNE 2018
265,771 (969)
580 (6,545)492,702 751,539
AT 1 JANUARY 2019
265,771 (969)
732 (460)504,562 769,636
COMPREHENSIVE INCOME
Net loss after income tax
- -
- - (3,503)(3,503)
Other comprehensive income
Movement in cash flow hedge reserve
- -
- (1,539)- (1,539)
Defined benefit actuarial loss
11
- - - - (10,558)(10,558)
Deferred tax on other comprehensive income
- -
- 431 2,956 3,387
TOTAL OTHER COMPREHENSIVE LOSS, AFTER INCOME TAX- - - (1,108)(7,602)(8,710)
TRANSACTIONS WITH OWNERS OF THE PARENT


Equity-settled share-based payments
- -
121 - - 121
Shares vested to employees
- 292
(292)- - -
Treasury shares purchased
- (283)
- - - (283)
Unclaimed dividends written back
- -
- - - -
Dividends paid
4
- - - - (14,067)(14,067)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT- 9
(171)- (14,067)(14,229)
AT 30 JUNE 2019
265,771 (960)
561 (1,568)479,390 743,194
07

Condensed Consolidated Interim Statement of Cash Flows
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
GROUPGROUP
30 JUNE 201930 JUNE 2018
NOTE$000$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
167,765
166,955
Payment for supplies and expenses
(73,801)
(76,387)
Payments to employees
(30,326)
(30,137)
CASH GENERATED FROM OPERATIONS63,638
60,431
Interest received
24
63
Interest paid
(5,995)
(5,514)
Net GST paid
(905)
(10,352)
Income tax paid
(8,830)
(9,601)
NET CASH INFLOW FROM OPERATING ACTIVITIES
9
47,932
35,027
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(29,782)
(109,728)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES

(29,782)
(109,728)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings
250
102,000
Unclaimed dividends
-
(10)
Dividends paid to shareholders
(14,067)
(37,509)
Lease payments
(381)
(244)
Purchase of treasury shares
(283)
(291)
NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES

(14,481)
63,946
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
3,669
(10,755)
Cash and cash equivalents at the beginning of the period

779
17,557
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
4,448
6,802
The above Condensed Consolidated Interim Statement of Cash Flows is to be read in conjunction with the accompanying notes.
REFINING NZ INTERIM REPORT 201908

Basis of preparation
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
Basis of preparation
These condensed consolidated interim financial statements as at and for the six months ended 30 June 2019 comply with
New Zealand Generally Accepted Accounting Practice (‘NZ GAAP’) and have been prepared in accordance with New Zealand
Equivalents to International Accounting Standard (‘NZ IAS‘) 34: Interim Financial Reporting and International Accounting Standard
(‘IAS‘) 34: Interim Financial Reporting and, consequently, do not include all the information required for full financial statements.
The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial
statements for the year ended 31 December 2018.
Entities reporting
The condensed consolidated interim financial statements for the ‘Group‘ are for the economic entity comprising The New Zealand
Refining Company Limited (‘Parent’, ‘Company’ or ‘Refining NZ’) and its subsidiary, Independent Petroleum Laboratory Limited.
No separate Parent results are disclosed in these condensed interim financial statements.
The Parent and the Group are designated as for profit entities for financial reporting purposes.
Statutory base
The condensed consolidated interim financial statements of the Group have been prepared in accordance with the requirements of
the NZX Main Board Listing Rules. Refining NZ is registered under the Companies Act 1993 and is a FMC Reporting Entity under
Part 7 of the Financial Markets Conduct Act 2013.
Accounting policies
The accounting policies used in the preparation of these condensed consolidated interim financial statements are consistent with
those used in the previously published consolidated interim financial statements as at and for the six months ended 30 June 2018
and the audited consolidated financial statements as at and for the year ended 31 December 2018, except for the adoption of
NZ IFRS 16 ‘
Leases ’ during the period.
Adoption of NZ IFRS 16 ‘Leases ’
The Group has adopted NZ IFRS 16 ‘Leases ’ for the first time in the interim reporting period commencing 1 January 2019. The Group
applied the simplified retrospective transition approach. Further details on the adoption of NZ IFRS 16 ‘
Leases ’ and the impact on the
Group’s financial performance and position are disclosed in Note 15.
Use of judgements and estimates
The preparation of the condensed consolidated interim financial statements requires the use of certain critical accounting estimates.
It also requires the directors to exercise their judgement in the process of applying the Group’s accounting policies. Estimates and
judgements are continually evaluated and are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
In the process of applying the Group’s accounting policies, the following areas involve judgements and assumptions that can
significantly affect the amounts recognised in the condensed consolidated interim financial statements:
• Recoverability of the capital work in progress, and useful lives of property, plant and equipment – refer to note 6;
• Provisions – refer to note 8;
• Employee benefits (including defined benefit pension plan obligation) – refer to note 11;
• Inventory obsolescence provision – no significant changes to these estimates have been made in relation to inventory
obsolescence provision in these condensed consolidated interim financial statements.
Significant estimates are designated by an
E
symbol in the notes to the condensed consolidated interim financial statements.
09

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
PERFORMANCE
This section focuses on Refining NZ’s financial performance and the returns provided to equity holders. The following notes are included:
Note 1: Operating revenue
Note 2: Segment information
Note 3: Related parties
1. OPERATING REVENUE
FOR THE SIX MONTHS ENDED 30 JUNE
GROUPGROUP
30 JUNE 201930 JUNE 2018
$000$000
Comprises:
Processing fees
117,282
97,356
Natural Gas recovery
19,714
14,078
Other refining related income
8,915
7,152
REFINING REVENUE145,911
118,586
Pipeline fee revenue
18,288
23,248
Wiri land and terminal lease income
3,263
3,263
DISTRIBUTION REVENUE21,551
26,511
Other operating income
1,951
1,932
TOTAL OPERATING REVENUE
169,413
147,029
REFINING NZ INTERIM REPORT 201910

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
2. SEGMENT INFORMATION
(a) Description of segments
The Leadership Team is the chief operating decision-maker. This Team reviews the Group’s internal reporting in order to assess
performance and allocate resources including the definition of the operating segments – oil refining and distribution. Management has
determined the operating segments based on these reports.
The Leadership Team considers the business from an operations perspective and assesses the performance of the two main business
segments ‘Oil refining’ and ‘Distribution’.
Oil refining
The Company owns and operates an oil refinery located at Marsden Point, 160 kilometres north of Auckland. The oil refinery is able to
process a wide range of crude oil types imported from around the world.
Distribution
The Company owns infrastructure to support the distribution of manufactured products to its customers. The Refinery to Auckland
Pipeline transfers product to the Wiri Oil terminal located in South Auckland.
Other
Other segments include the subsidiary company operations and properties. These have not been included in a reportable segment as
they are not separately reported to the Leadership Team.
Sales between segments are carried out at arm’s length and represent charges by the subsidiary (included in “Other”) to Oil Refining.
The revenue from external parties reported to the Leadership Team is measured in a manner consistent with that in the Income
Statement. All revenue is generated in New Zealand.
(b) Reporting measures
The performance of the operating segments is based on net profit after income tax. This information is measured in a manner consistent
with that in the condensed consolidated interim financial statements.
The Group manages assets and liabilities on a central basis and therefore does not provide any segment information of this nature.

11

2. SEGMENT INFORMATION (continued)
(c) Segment results
Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
Oil Refining
Distribution
Other
Oil Refining
Distribution
Other
2018
$000
$ 147, 0 2 9
2018
$000
($2,822)
NET (LOSS) AFTER INCOME TAX ($000)
REVENUE FROM EXTERNAL CUSTOMERS ($000)
21,55126,511
11,918
13,418
145,911118,586
(16,242)(16,695)
1,9511,932
821455
2019
$000
$169,413
2019
$000
($3,503)
REFINING NZ INTERIM REPORT 201912

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
2. SEGMENT INFORMATION (continued)
OIL REFININGDISTRIBUTIONOTHERTOTAL
30 JUNE 2019
$000$000$000$000
Total operating revenue
145,911 21,551 4,769 172,231
Inter-segment revenue
- - (2,818)(2,818)
REVENUE FROM EXTERNAL CUSTOMERS145,911 21,551 1,951 169,413

Other income
144 2,035 - 2,179
Finance income
19 - 4 23
Finance cost
(6,714)(52)(1)(6,767)
Depreciation and disposal costs
(48,455)(3,398)(284)(52,137)
Income tax
6,290 (4,635)(328)1,327
Net (loss)/profit after income tax
(16,242)11,918 821(3,503)
OIL REFININGDISTRIBUTIONOTHERTOTAL
30 JUNE 2018
$000$000$000$000
Total operating revenue
118,586 26,511 4,294 149,391
Inter-segment revenue
- - (2,362)(2,362)
REVENUE FROM EXTERNAL CUSTOMERS
118,586 26,511 1,932 147,029

Other income- 1,082 70 1,152
Finance income
62 - 1 63
Finance cost(6,589)- (10)(6,599)
Depreciation and disposal costs(42,527)(3,434)(255)(46,216)
Income tax
5,864 (5,218)(148)498
Net (loss)/profit after income tax
(16,695)13,418455 (2,822)
3. RELATED PARTIES
The Group enters into transactions with related parties. Details of related parties and the types of transactions entered into
during the period ended 30 June 2019 are consistent with those disclosed in the audited financial statements for the year ended
31 December 2018.
13

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
DEBT AND EQUITY
The Group’s objective when managing capital (net assets of the Group) is to safeguard the Group’s ability to continue as a going concern
in order to provide returns for shareholders and benefit for other stakeholders and to maintain an appropriate capital structure. The Group
borrows under a negative pledge arrangement. The Group monitors rolling forecasts which take into consideration the Group’s debt
financing plans and covenant compliance, to ensure that it is able to continue meeting funding requirements.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, or issue new shares.
This section outlines Refining NZ’s capital structure and includes the following Notes:
Note 4: Dividends
Note 5: Loans and borrowings
4. DIVIDENDS
CENTS
TOTALTOTAL
PER
30 JUNE 201930 JUNE 2018
SHARE
$000$000
Final dividend paid for 2017
12.0
-
37,509
Final dividend paid for 2018
4.5
14,067
-
TOTAL
14,067
37,509
The dividends were fully imputed. Supplementary dividends were paid to shareholders who were not tax residents in New Zealand for
which the Group received a foreign investor tax credit entitlement.
Dividend declared post balance date
The Group has declared a dividend of 2 cents per share, fully imputed, payable on 19 September 2019 (2018: 3 cents per share).
REFINING NZ INTERIM REPORT 201914

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
5. LOANS AND BORROWINGS
The chart below outlines the maturity profile of the facilities:


(*)
The carrying value of the subordinated notes as at 30 June 2019 amounts to $74.4 million. The difference between the carrying value
and the $75 million face value is due to interest and issue costs.
In February 2019 the Company reduced its existing committed bank facility limits from $350 million to $275 million and extended
the $50 million facility expiring in March 2019 to March 2021. As at 30 June 2019 the Company held $15 million of uncommitted
facilities, with a further $20 million becoming available in July 2019. The purpose of the uncommitted facilities is to support short
dated debt drawings.
The carrying amounts of bank borrowings approximate their fair value. The borrowings are unsecured. The Parent borrows under a
negative pledge arrangement which requires certain certificates and covenants. All these requirements have been met and no breaches
of these covenants are forecast.
The Parent has the ability to determine which revolving cash advance facility will be drawn upon to meet funding requirements.
$000
1–2 YEARS
0–1 YEAR
57,000
38,000
4,350
95,000
5,000
2–3 YEARS
29,200
50,800
3–4 YEARS
75,000*
5+ YEARS
120,000
100,000
80,000
60,000
40,000
20,000
$ 000
Utilised uncommitted facilities Utilised committed facilities Undrawn committed facilities Subordinated notes
15

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
OPERATING ASSETS AND LIABILITIES
This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a result. Liabilities
relating to the Group’s financing activities are detailed in the Debt and Equity section of the Notes.
This section includes the following Notes:
Note 6: Property, plant and equipment and intangibles
Note 7: Capital commitments
Note 8: Provisions
Note 9: Cash and cash equivalents
Note 10: Trade and other payables
Note 11: Employee benefits
6. PROPERTY, PLANT AND EQUIPMENT, RIGHT-OF-USE ASSETS AND INTANGIBLES
GROUPGROUP
30 JUNE 201930 JUNE 2018
$000$000
OPENING NET BOOK AMOUNT
1,206,257
1,137,081
Additions
31,486
168,273
Right-of-use asset (adoption of IFRS 16)
4,905
-
Depreciation and disposals cost
(52,137)
(96,424)
Transfers
(3,250)
(2,673)
CLOSING NET BOOK AMOUNT
1,187,261
1,206,257
Comprises:
Property, plant and equipment
1,169,408
1,191,948
Right-of-use asset
6,793
-
Intangibles
11,060
14,309
CLOSING NET BOOK AMOUNT
1,187,261
1,206,257
Intangibles includes the New Zealand Units (NZUs) issued by the Crown to the parent company, pursuant to the company’s Negotiated
Greenhouse Agreement (NGA), which is valid until 2022. The Company is currently exempted from the Emissions Trading Scheme (ETS)
due to the NGA and the Company’s demonstrated commitment to progress in reduction of energy intensity along a world’s best practice
pathway. The NZUs are measured at historical cost and used to offset liabilities arising from carbon dioxide emissions. An assessment
of impairment is performed annually with reference to external sources of information (market values of NZUs). Right-of-use asset
relates to leased assets recognised by the Group at transition to NZ IFRS 16 ‘
Leases ’ (refer to Note 15 for details).
E
The Group applies judgements in relation to the appropriateness and recoverability of capital work in progress, and useful
lives applied to the property, plant and equipment. In preparing these condensed consolidated interim financial statements,
the Group has estimated the recoverable amount of its assets on a value in use basis, and determined that there is no
impairment under a range of reasonably possible scenarios. This is in the context of the market capitalisation of the Company
being less than the carrying amount of the Group’s net assets as at 30 June 2019 and the understanding that:
• the operations resource consents will be renewed in 2022 and
• the Governments’ current review of the Emissions Trading Scheme, will deliver an acceptable carbon credit regime for
Refining NZ as an Energy Intensive Trade Exposed entity, at the expiration of the Company’s Negotiated Greenhouse
Agreement in 2022.
The capital work in progress as at 30 June 2019 has been assessed by management, company project engineers and project managers
as being recoverable.
REFINING NZ INTERIM REPORT 201916

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
7. CAPITAL COMMITMENTS
GROUPGROUP
30 JUNE 201930 JUNE 2018
$000$000
Capital expenditure contracted for in relation to property, plant and equipment
at the end of the period but not yet incurred
17,462 24,308
8. PROVISIONS
GROUPGROUP
30 JUNE 201931 DEC 2018
$000$000
Jetty restoration provision
11,669
10,866
Platinum reclamation provision
851
-
PROVISIONS
12,520
10,866
The jetty restoration provision relates to restoration obligations in relation to a lease agreement for the seabed upon which the jetty
is situated at Marsden Point. The restoration provision is measured at the present value of the expenditures expected to be required to
settle the obligation using a pre-tax interest rate that reflects the current market assessments of the time value of money and the risks
specific to the obligation.
At 30 June 2019 the Company has reassessed the value of the future expenditures and amended the discount rate assumptions (from
2.74% as at 31 December 2018 to 1.83% as at 30 June 2019) which resulted in an increase in the provision and the corresponding
asset by $655 thousand. An increase in the provision as a result of the passage of time (unwinding of discount) of $148 thousand was
recognised as a finance cost.
The platinum reclamation provision relates to leased platinum recognised at transition to NZ IFRS 16 ‘
Leases ’ (refer to Note 15 for
further details).
17

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
9. CASH AND CASH EQUIVALENTS
In the statement of cash flows, the deposits’ placements and withdrawals and bank borrowings receipt and repayment are presented on
a net basis as their turnover is quick, amounts are large and the maturities are relatively short.
The table below presents a reconciliation of net cash flow from operating activities to reported profit:
30 JUNE 201930 JUNE 2018
$000$000
NET LOSS AFTER INCOME TAX
(3,503)
(2,822)
Adjusted for:
Depreciation and disposal costs
52,137
46,216
Movement in deferred tax
(5,042)
(1,334)
Add deferred tax on items included in other comprehensive income
3,387
294
Movement in provisions
819
172
Less increase in provisions included in property, plant and equipment
(656)
21
Movement in employee share scheme entitlement reserve
121
151
Decrease in intangibles
3,249
1,780
Other non-cash movements
1,129
(59)
Impact of changes in working capital items:
Decrease in trade and other receivables
2,890
47,196
Increase/(decrease) in trade and other payables
2,336
(32,622)
Less increase in trade payables included in property, plant and equipment
(1,047)
(12,179)
Decrease in employee benefits
9,764
(936)
Less employee entitlements included in other comprehensive income
(10,558)
(453)
Decrease in income tax receivable
(8,502)
(9,059)
Decrease/(increase) in inventories
1,408
(1,339)
NET CASH FLOWS FROM OPERATING ACTIVITIES
47,932
35,027
Comparatives have been updated to ensure consistency between financial reporting periods.
REFINING NZ INTERIM REPORT 201918

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
10. TRADE AND OTHER PAYABLES
GROUPGROUP
30 JUNE 201931 DEC 2018
$000$000
Trade payables
29,493
29,677
Goods services tax payable
2,878
3,783
Deferred income
2,725
6,999
Excise duty
119,801
112,102
TOTAL TRADE AND OTHER PAYABLES
154,897
152,561
Trade and other receivables and trade and other payables both include excise duties of $119.8 million (31 December 2018:
$112.1 million). Changes to excise duties have no direct impact on the results of the Group as they are collected from the oil companies
and are paid to the New Zealand Customs Service on the same day of each month.
11. EMPLOYEE BENEFITS
Employee benefits comprise defined benefit pension and medical plan, wages, salaries, annual leave, and long-service leave and
retirement bonus.
The defined benefit pension plan is a contributory defined benefit scheme where the Company contributes towards pensions of eligible
employees. The scheme was closed to new members at the end of 2002. At retirement, the members have pension entitlements based
on final salary and membership. Members may elect to exchange part, or all, of their pension for a cash lump sum. At 30 June 2019 the
Plan had 127 pensioners (including disability and deferred pensioners) receiving regular pension payments.
Under the defined benefit pension plan the Group has a legal obligation to pay further contributions if the Fund does not hold sufficient
assets to pay all employees the benefits they are entitled to.
The liability, presented as non-current liability, is recognised in the consolidated balance sheet at the present value of the defined
benefit pension plan obligation at the balance sheet date less the fair value of plan assets. The defined benefit pension plan obligation
is calculated at each balance date by an independent actuary using the projected unit credit method. The present value of the defined
benefit pension plan obligation is determined in accordance with NZ IAS 19 ‘Employee Benefits’ by discounting the estimated future
cash outflows using interest rates of government bonds that have terms to maturity approximating the terms of the related pension
liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity
in other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in the Consolidated
Income Statement.
The actuarial assumptions used in the 30 June 2019 valuation are consistent with those adopted as at 31 December 2018. The discount
rate adopted at 30 June 2019 was 1.7% (December 2018: 2.5%) and is set with reference to New Zealand Government Bonds. A
decrease in the government bond yield will increase Plan liabilities for financial reporting purposes, but not necessarily impact upon the
funding requirements of the Company.
19

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
11. EMPLOYEE BENEFITS (continued)
The total amount recognised in other comprehensive income is as follows:
GROUPGROUP
30 JUNE 201930 JUNE 2018
$000$000
Actuarial losses
(16,392)
(390)
Actual return on plan assets less interest income
7,854
87
Contributions tax
(2,020)
(150)
TOTAL RECOGNISED IN OTHER COMPREHENSIVE INCOME INCLUDING
CONTRIBUTIONS TAX
(10,558)(453)
The medical plan is a scheme where Company pays health insurance premiums in respect of a limited number of former employees and
a limited number of current employees when they retire, until their death. This arrangement is no longer offered to new employees. The
medical plan is accounted for in a similar manner to the defined benefit plan outlined above, with an accounting valuation performed by
an independent actuary at each balance date.
REFINING NZ INTERIM REPORT 201920

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
FINANCIAL RISK MANAGEMENT
This section outlines the key risk management activities undertaken to manage the Group’s exposure to financial risk.
This section includes the following Notes:
Note 12: Financial instruments
12. FINANCIAL INSTRUMENTS
All financial assets other than derivatives are classified as loans and receivables. All financial liabilities other than derivatives are
classified as measured at amortised cost. The fair value of financial assets and liabilities approximates their carrying value.
GROUPGROUP
30 JUNE 201931 DEC 2018
$000$000
Trade receivables
30,021
40,610
Cash and cash equivalents
4,448
779
TOTAL LOANS AND RECEIVABLES34,469
41,389
Trade payables
(29,493)
(29,677)
Bank borrowings
(259,971)
(258,601)
FINANCIAL LIABILITIES MEASURED AT AMORTISED COST(289,464)
(288,278)
Derivative liabilities designated in hedging relationships
Forward foreign exchange contracts
4
17
Electricity futures
3,684
6,238
Interest rate swaps
(5,845)
(6,864)
TOTAL DERIVATIVE LIABILITIES DESIGNATED IN HEDGING RELATIONSHIPS(2,157)
(609)
Classified as:
Current assets
3,632
6,249
Non-current assets
56
6
Current liabilities
(764)
(1,300)
Non-current liabilities
(5,081)
(5,564)
TOTAL DERIVATIVE LIABILITIES DESIGNATED IN HEDGING RELATIONSHIPS
(2,157)
(609)

21

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
12. FINANCIAL INSTRUMENTS (continued)
Financial instruments are measured at fair value using the following fair value measurement hierarchy:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),
• inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (level 2), and
• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The Group’s financial instruments have been measured at the fair value measurement hierarchy of:
• Level 1 for electricity futures;
• Level 2 for interest rate swaps and forward exchange contracts.
Electricity futures are traded on the Australian Securities Exchange (ASX), and the Group uses ASX mark-to-market settlement prices to
determine the fair value of the futures contracts.
Interest rate swaps and forward foreign exchange contracts are not traded in an active market and their fair value is determined by
using valuation techniques. Specific valuation techniques used by the Group refer to observable market data and include:
• The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield
curves, and
• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with
the resulting value discounted back to present value.
REFINING NZ INTERIM REPORT 201922

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
OTHER
This section contains additional notes and disclosures that aid in understanding Refining NZ’s performance and financial position.
This section includes the following Notes:
Note 13: Contingent assets and liabilities
Note 14: Events after balance date
Note 15: Adoption of NZ IFRS 16 ‘
Leases ’
13. CONTINGENT ASSETS AND LIABILITIES
The Group has no contingent assets or liabilities at 30 June 2019.
14. EVENTS AFTER BALANCE DATE
The following events occurred after balance date:
• An interim dividend was declared as per note 4;
• Uncommitted bank facilities totalling $20 million became available in July 2019 as per note 5;
• The Reserve Bank of New Zealand announced a larger than expected reduction in the Official Cash Rate (from 1.5% to 1%).
A decrease in interest rates may impact the valuation of the Group’s financial instruments, particularly interest rate swaps, and
defined benefit plan and medical plan obligations due to a lower discount rate. A decrease in the discount rate will increase the
defined benefit plan and medical plan obligations for financial reporting purposes, but not necessarily impact upon the funding
requirements of the Company as per note 11. A 1% reduction of the pension fund discount rate would increase the defined benefit
obligation at 30 June 2019 by $15.7 million, all other factors held constant.
23

Notes to the Condensed Consolidated
Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2019 (UNAUDITED)
15. ADOPTION OF NZ IFRS 16 ‘LEASES ’
NZ IFRS 16 ‘Leases ’ was issued in February 2016 and is mandatory for first interim periods within annual reporting periods beginning on
or after 1 January 2019. It has resulted in more leases being recognised on the balance sheet for lessees, as the distinction between
operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability
to pay rentals are recognised. The only exemptions for the Group are short-term and low value leases. The accounting treatment for
lessors has not significantly changed under the new standard.
The Group applied the simplified retrospective transition approach where outstanding lease payments are discounted using the
incremental borrowing rate at 1 January 2019. This results in the right-of-use asset being recognised at an amount equal to the lease
liability. The Group applied the transitional provisions of NZ IFRS 16
‘Leases’ which allowed it to not account for:
• leases, where the lease term ends within 12 months of 1 January 2019, and
• contracts which had been previously recognised in accordance with either NZ IAS 17 ‘
Leases ’ or NZ IFRIC 4 ‘Determining whether
an Arrangement contains a Lease’
.
The right-of-use assets are presented in the Group’s balance sheet under Property, plant and equipment and disclosed in Note 6.
The right-of-use assets recognised by Group relate to the lease of:

• land on which Wiri Oil terminal is located in South Auckland. The right-of-use asset is depreciated over the period until the expiry
of the lease.
• land, foreshore license and barge ramp where the oil tanker jetty is located. The right-of-use asset is depreciated over the period
until the expiry of the lease.
• platinum held in catalysts used in the oil refining process. The leased platinum must be returned to the lessor at the end of the
lease term. The estimated cost of reclamation, discounted to present value, is included as a provision in the Group’s balance sheet,
refer to Note 8. The lease payments are variable and represent interest paid to the lessor based on an agreed fixed rate and with
reference to the market value of the leased platinum.
The weighted average lessee’s incremental borrowing rate applied to lease liabilities recognised in the balance sheet at the date of
initial application was 3.9%. The variance between Operating lease commitments disclosed at 31 December 2018 of $2,845 thousand
(applying NZ IAS 17) and Lease liabilities at 1 January 2019 of $4,071 thousand was a result of adjustments due to different treatment
of extension and termination options and discounting using the incremental borrowing rate at the date of initial application.
The impact of the adoption of NZ IFRS 16 ‘
Leases ’ as at and for the period ended 30 June 2019 is as follows:
• Income statement: increase in Depreciation and disposal costs of $375 thousand and in Administration and other costs of
$94 thousand, and decrease in Finance costs of $332 thousand;
• Balance sheet: Increase in Property, plant and equipment of $4,530 thousand, Current lease liabilities of $564 thousand,
Non-current lease liabilities of $3,252 thousand and Non-current provisions of $851 thousand;
• Statement of cash flow: decrease in Payment for supplies and expenses of $332 thousand, and increase in Interest paid of
$77 thousand and Lease payments of $255 thousand.
REFINING NZ INTERIM REPORT 201924

Registered Office Chairman
Marsden Point S C Allen (independent director)
Ruakaka
Independent Directors
Mailing Address J B Miller
Private Bag 9024 V C M Stoddart
Whangarei 0148 M Tume (resigned 21 February 2019)
Telephone: +64 9 432 5100 P A Zealand

Website Non-Independent Directors
www.refiningnz.com D C Boffa
R Cavallo
Share Register N L Jones
Computershare Investor Services Limited
Private Bag 92119 Chief Executive Officer
Auckland 1142 M J Fuge
Telephone: +64 9 488 8777
enquiry@computershare.co.nz Company Secretary
D M Jensen
Bankers
ANZ Bank New Zealand Limited
Bank of New Zealand
The Bank of Tokyo-Mitsubishi UFJ, Limited
Bank of China (New Zealand) Limited

Legal Advisers
Minter Ellison Rudd Watts
Chancery Green

Auditor
PricewaterhouseCoopers

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