2019 Results Announcement

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 12 months to 31 December 2019
Previous Reporting Period 12 months to 31 December 2018
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$348,375 Down 4%
Total Revenue $348,375 Down 4%
Net profit/(loss) from
continuing operations
$4,165 Down 86%
Total net profit/(loss) $4,165 Down 86%
Final Dividend
Amount per Quoted Equity
Security
NZ$ Nil
Imputed amount per Quoted
Equity Security
NZ$ Nil
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.36 $2.42
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to attached NZX announcement 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

27/02/2020

Audited financial statements accompany this announcement.

---

REFINING NZ
FULL YEAR ANNOUNCEMENT 2019
1
FULL YEAR
ANNOUNCEMENT
HIGHLIGHTS
– Net profit after tax of $4.2 million achieved in a
challenging, low margin environment in the
second half of 2019.
–
G
ross refining margin (GRM) averaged
USD 5.34 per barrel (2018: USD 6.31 per barrel).
–
A c
onfluence of negative influences led to a low margin
environment and resulted in the Refinery receiving a
floor processing income from its customers for the last
two months of 2019.
–
Outstanding personal and process safety performance
with a significantly improved lost time injury frequency
of 0.13 (2018: 0.48)
1
.
COMMENTARY
Refining NZ has reported a Net Profit after Tax (NPAT)
of $4.2 million (2018: $30 million) for the year ended
31 December 2019.
Managing Director, Paul Zealand described the result as
disappointing given how well the business has performed
operationally, and that the confluence of market factors have
resulted in an unsustainably low margin environment in the
latter part of the year.
“The Gross Refining Margin averaged USD 5.34 for the year
(2018: USD 6.31 per barrel), weaker than expected global
refining margins, the result of a slowdown in the global economy,
compounded by US sanctions on Chinese crude tanker
companies, and additional refining capacity coming online
earlier than expected.”
“Demand in the Asia Pacific region was negatively impacted by
a glut of diesel and gasoline exports from China and India.
Crude freight rates increased from October while the expected
lift in diesel margins in the lead up to MARPOL did not
– Excellent operational performance. Operational
availability on the Refinery’s processing units was
at 99.7%. The utilisation rate on the Hydrocracker
unit was at its highest in ten years.
–
Crude throughput of 42.7 million barrels was up
around 6% on the previous year (2018:40.4 million
barrels), helped by there being no planned
maintenance Turnarounds in 2019.
–
Highest annual crude and condensate intake,
the highest annual refined product make
and customer product offtakes.
– Strong volume delivery on the RAP with annual
throughput at 20.8 million barrels, the second
highest on record.
materialise as expert market commentators had forecast,
though
High Sulphur Fuel Oil margins fell strongly.”
Mr Zealand said that given the headwinds in the market,
including the impact of Coronavirus on supply and demand, the
low margin environment will likely remain into the early part of
2020.
“Expert market commentators are expecting that refining
margins will improve in the near-to-mid-term, helped by
improving US/China trade relations. International energy
consulting company Facts Global Energy (FGE) is also expecting
diesel margins to lift as MARPOL compliant fuel demand
increases, which will increase hydrocracking margins,”
he said.
Mr Zealand confirmed that the result aligns with the Company’s
profit
matrix issued in February 2019 taking into account the
$3.8 million NPAT impact of the Transpower outage in
November. The FY 2019 result was assisted by a favourable
USD/
NZD exchange rate which averaged USD 0.66
for the year (2018: USD 0.69).
1
Per 200,000 hours
worked.

REFINING NZ
FULL YEAR ANNOUNCEMENT 2019
2
RESPONDI NG TO
LOW REFINING MARGINS
Mr Zealand said that the management team has been working
with the Board on a comprehensive plan to respond to the
weaker
than expected margin environment, with the objectives
of securing long term value for shareholders and deriving
maximum value from the Company’s significant infrastructure
assets.
“Given the uncertainties the refining sector is facing, we are
working to minimise cash spend and increase revenue. At the
same time we are looking at all tactical and strategic options
available to enable Refining NZ to stay at the core of the fuel
supply
chain in New Zealand.”
“Success will enable the Company to continue to add
resilience to the country’s fuel supply chain by optimising
our
essential infrastructure assets (refining, storage and
distribution) at Marsden Point .”
“Looking ahead, our substantial infrastructure investment and
deep technical capability means we will have a critical role in
producing the transport fuels New Zealand needs now, and for
a
future low carbon economy,” he said.
SAFETY
Mr Zealand described the Refinery’s personal and process
s
afety performance in 2019 as outstanding.
The lost time injury frequency rate (LTIF) at 0.13 was a
marked improvement on the prior year (2018: 0.48) with only
o
ne lost time injury during 2019. This reflects the success of
our safety culture programme E Tu Tangata (Stand in the Gap)
rolled out across the Refinery via a series of Hauora Korero
(safety
talks) and Hauora Hikoi (safety walks). The Refinery’s
process safety performance was also outstanding in 2019
with no significant process safety incidents (2018: 5).
OPERATIONAL PERFORMANCE
Operational availability on the Refinery’s processing units was
at 99.7% with the utilisation rate on the Hydrocracker unit
at its highest in the past decade. This positive performance
was achieved despite a Transpower outage in the region
on the 27th of November, which saw a total loss of power
to the Refinery.
Several production records were achieved on the back
of reliable refining operations including the highest
annual crude and condensate intake, the highest
annual refined product make and customer product
offtakes. Operational availability on the Refinery to
Auckland pipeline was greater than 99% with the
annual pipeline throughput at 20.8 million barrels,
the second highest on record.
Mr Zealand confirmed that operating and capital costs had
remained tightly controlled during the year as Refinery
operations came under sustained pressure from higher
electricity and gas prices.
“Ongoing supply issues with the Pohokura offshore natural
gas field meant that access to natural gas supplies had
to be carefully managed during the year. Refining NZ has
subsequently contracted all of its natural gas requirements
for the next three years with a credible market participant
with diverse supply options.”
MARPOL
The Refinery has worked with its customers to manage the
introduction of 0.5% low sulphur fuel oil for shipping under
the 2020 IMO MARPOL regulations which came into force
on 1 January, 2020.
Said Zealand: “We are broadening our crude diet to minimise
the MARPOL impact on our fuel oil make. Four new, lower
cost crudes have been successfully tested and forward crude
procurement decisions by our customers are already being
made as a result. Refining these new crudes will lower crude
costs overall and can be expected to improve the Refinery’s
GRM from Q2 2020 onwards.”

REFINING NZ
FULL YEAR ANNOUNCEMENT 2019
3
2020 TURNAROUND
Preparations for planned maintenance Turnarounds
in March and April are well advanced with the preparedness
benchmarked as “top quartile” by recognised industry project/
Turnaround specialists.
GOVERNMENT INQUIRY
In September the Government Inquiry into the 2017 pipeline
outage and improving the resilience of the fuel supply into the
Auckland region, concluded that Refining NZ maintained and
operated the RAP properly and in keeping with all legal
requirements and standard industry practice.
Said Zealand: “Given our essential role in the transport fuels
supply chain, we were also encouraged by the Inquiry noting
that Refining NZ is working to make timely investment
decisions and that we have a clear goal of having new
infrastructure in place shortly before it is needed to meet
demand, rather than just in time or too late.”
“We continue to push for further legislative protections for the
pipeline and are working with the Government and industry
on ways to further improve the resilience of Auckland’s
fuel supply chain.”
EMISSIONS TRADING SCHEME
In 2019 the Government confirmed that Refining NZ will
be brought in to the New Zealand Emissions Trading Scheme
(NZETS) as an Energy Intensive Trade Exposed (EITE)
business with an allocation of carbon units after the
Negotiated Greenhouse Agreement we have with the
Crown expires at the end of 2022.
Said Zealand: “This is an imperative for the Company and the
country, as we transition to a future based on the production
of lower carbon fuels. At the same time, we are mindful of the
potential disruption from further legislative reforms to the
NZETS currently before Parliament, in particular, a recently
announced review of unit allocation to EITE businesses.”
DIVIDEND
Given the challenging low margin environment the Company
is operating in, the Company’s Directors have resolved that
it is prudent to not pay a final dividend to shareholders.
With an interim dividend of two cents paid in September,
the total dividend payment for the year is two cents.
OUTLO
OK
Mr Zealand said that the poor margin situation at the end of
2019
has continued into the first two months of 2020 with
refining margins below the processing fee floor, exacerbated
by
the ongoing impact of Coronavirus on regional supply and
demand.
“Exactly how the supply adjusts to the full effect of
Coronavirus, the requirements of MARPOL, and other global
factors,
remains to be seen. This will likely result in ongoing
margin volatility as demand returns, stocks are released and
export refining
capacity comes back on stream, particularly
in Chi na.”
“Expert commentator FGE, is forecasting global oil demand
to rebound in 2H 2020 & 1H 2021, driven first and foremost,
by
growth in China.”
“Our team at Marsden Point remains focused on the safe
and reliable performance of our refining operations and the
multi-fuel pipeline to Auckland, as well as reducing our
operational
and capital spending in 2020. These actions
should ensure that the Refinery is well placed to benefit
when
global refining margins improve.”
FURTHER
INFORMATION
Greg McNeill,
Communications and External Affairs Manager
T:
094325115 M: 021 873623
E: greg.mcneill@refiningnz.com

---

CONSOLIDATED
FINANCIAL
STATEMENTS
2 019

PAGE
Group Financial Statements
Consolidated Income Statement 02
The income earned and operating expenditure incurred by the Refining NZ Group
during the financial year
Consolidated Statement of Comprehensive Income 03

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

A summary of the Refining NZ Group assets and liabilities at the end of the financial year
Consolidated 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 financial year
Consolidated Statement of Cash Flows 08

Cash generated and used by the Refining NZ Group during the financial year
Notes to the Consolidated Financial Statements 09
PERFORMANCE 13
DEBT AND EQUITY 24
OPERATING ASSETS AND LIABILITIES 30
FINANCIAL RISK MANAGEMENT
47
OTHER 55
Independent Auditor’s Report 58
Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
01

Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER 2019
Consolidated Income Statement
FOR THE YEAR ENDED 31 DECEMBER 2019
GROUPGROUP
20192018
NOTE$000$000
INCOME
Revenue
1, 2
344,861
359,316
Other income
1, 2
3,514
3,150
TOTAL INCOME348,375
362,466
EXPENSES
Purchase of process materials and utilities
2
98,082
81,140
Materials and contractor payments
2
31,340
29,003
Wages, salaries and benefits
2
61,247
61,268
Administration and other costs
2
39,471
38,408
TOTAL EXPENSES230,140
209,819
EARNINGS BEFORE DEPRECIATION, FINANCE COSTS AND INCOME TAX118,235
152,647
Depreciation and disposal costs
2, 10
99,931
97,075
NET PROFIT BEFORE FINANCE COSTS AND INCOME TAX18,304
55,572
FINANCE COSTS
Finance income
2
(44)
(104)
Finance cost
2
13,489
13,904
NET FINANCE COSTS13,445
13,800
Net profit before income tax
4,859
41,772
Income tax
4
694
12,156
NET PROFIT AFTER INCOME TAX4,165
29,616
ATTRIBUTABLE TO:
Owners of the Parent
4,165
29,616
EARNINGS PER SHARE FOR PROFIT ATTRIBUTABLE TO
THE SHAREHOLDERS OF THE NEW ZEALAND REFINING COMPANY LIMITED
CENTSCENTS
Basic and diluted earnings per share
5
1.3
9.5
The above Consolidated Income Statement is to be read in conjunction with the notes on pages 09 to 57.
GROUPGROUP
20192018
NOTE$000$000
NET PROFIT AFTER INCOME TAX4,165
29,616
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to the Income Statement
Defined benefit plan actuarial gain/(loss)
18(k)
7,681
(16,024)
Deferred tax on defined benefit plan actuarial (gain)/loss
4
(2,151)
4,487
Total items that will not be reclassified to the Income Statement
5,530
(11,537)
Items that may be subsequently reclassified to the Income Statement
Movement in cash flow hedge reserve
20
(3,094)
7,856
Deferred tax on movement in cash flow hedge reserve
4
866
(2,200)
Total items that may be subsequently reclassified to the Income Statement(2,228)
5,656
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), AFTER INCOME TAX

3,302
(5,881)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, AFTER INCOME TAX7,467
23,735
ATTRIBUTABLE TO:
Owners of the Parent
7,467
23,735
The above Consolidated Statement of Comprehensive Income is to be read in conjunction with the notes on pages 09 to 57.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20190203

Consolidated Balance Sheet
AS AT 31 DECEMBER 2019
Consolidated Balance Sheet
AS AT 31 DECEMBER 2019
GROUPGROUP
20192018
NOTE$000$000
ASSETS
CURRENT ASSETS
Cash and cash equivalents
15
5,255
779
Trade and other receivables
14
145,063
152,712
Income tax receivable
5,895
1,394
Derivative financial instruments
20
4,421
6,249
Inventories
16
3,340
2,974
TOTAL CURRENT ASSETS163,974
164,108
NON-CURRENT ASSETS
Inventories
16
19,410
19,955
Derivative financial instruments
20
205
6
Property, plant and equipment
10
1,171,301
1,191,948
Right-of-use assets
9
4,028
-
Intangibles
10
22,137
14,309
TOTAL NON-CURRENT ASSETS1,217,081
1,226,218
TOTAL ASSETS1,381,055
1,390,326
LIABILITIES
CURRENT LIABILITIES

Trade and other payables
17
171,018
152,561
Derivative financial instruments
20
3,997
1,300
Borrowings
8
-
50,000
Lease liabilities
9
248
171
Employee benefits
18
7,861
9,948
TOTAL CURRENT LIABILITIES183,124
213,980
NON-CURRENT LIABILITIES
Derivative financial instruments
20
5,017
5,564
Borrowings
8
246,616
208,601
Lease liabilities
9
3,206
2,303
Employee benefits
18
40,894
48,087
Provisions
13
12,643
10,866
Deferred tax liabilities
4
132,811
131,289
TOTAL NON-CURRENT LIABILITIES441,187
406,710
TOTAL LIABILITIES624,311
620,690
NET ASSETS
756,744
769,636
The above Consolidated Balance Sheet is to be read in conjunction with the notes on pages 09 to 57.
GROUPGROUP
20192018
NOTE$000$000
EQUITY
Contributed equity
6
265,771
265,771
Treasury stock
6, 21
(960)
(969)
Employee share entitlement reserve
6, 21
681
732
Cash flow hedge reserve
6, 20
(2,688)
(460)
Retained earnings
493,940
504,562
TOTAL EQUITY
756,744
769,636
The Board of Directors of The New Zealand Refining Company Limited authorised these Consolidated Financial Statements for issue on
26 February 2020.
For and on behalf of the Board:





S C Allen J B Miller
Director Director
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20190405

Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2019
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 profit after income tax- - - - 29,616 29,616
Other comprehensive income
Movement in cash flow hedge reserve
20
- - - 7,856 - 7,856
Defined benefit actuarial loss
18(k)
- - - - (16,024)(16,024)
Deferred tax on other comprehensive income
20
- - - (2,200)4,487 2,287
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), AFTER INCOME TAX
- - - 5,656 (11,537)(5,881)
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments
21
- - 303 - - 303
Treasury shares purchased
21
- (291)- - -(291)
Unclaimed dividends written back- - - - (1)(1)
Dividends paid
7
- - - - (46,885)(46,885)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT
- (291)303 - (46,886)(46,874)
AT 31 DECEMBER 2018
265,771 (969)732 (460)504,562 769,636
AT 1 JANUARY 2019
265,771 (969)732 (460)504,562 769,636
COMPREHENSIVE INCOME
Net profit after income tax
- - - - 4,165 4,165
Other comprehensive income
Movement in cash flow hedge reserve
20
- - - (3,094)- (3,094)
Defined benefit actuarial gain
18(k)
- - - - 7,681 7,681
Deferred tax on other comprehensive income
20
- - - 866 (2,151)(1,285)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), AFTER INCOME TAX- - - (2,228)5,530 3,302
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments
21
- - 241 - - 241
Shares vested to employees
21
-292 (292)---
Treasury shares purchased
21
- (283)- - -(283)
Dividends paid
7
- - - - (20,317)(20,317)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT- 9 (51)- (20,317)(20,359)
AT 31 DECEMBER 2019
265,771 (960)681 (2,688)493,940 756,744
The above Consolidated Statement of Changes in Equity is to be read in conjunction with the notes on pages 09 to 57.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20190607

Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 31 DECEMBER 2019
GROUPGROUP
20192018
NOTE$000$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
351,625
352,384
Payment for supplies and other expenses
(151,172)
(161,369)
Payments to employees
(62,780)
(58,858)
Interest received
44
104
Interest paid
(14,418)
(13,727)
Net GST paid
(1,936)
(2,347)
Income tax paid
(4,238)
(11,551)
NET CASH INFLOW FROM OPERATING ACTIVITIES
1515
117,125
104,636
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(77,695)
(162,316)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES

(77,695)
(162,316)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments of)/proceeds from bank borrowings
(13,200)
15,300
Proceeds from subordinated notes
8
-
73,301
Unclaimed dividends
-
(1)
Dividends paid to shareholders
7
(20,317)
(46,885)
Lease payments
9
(1,154)
(522)
Purchase of treasury stock
21
(283)
(291)
NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES

(34,954)
40,902
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
4,476
(16,778)
Cash and cash equivalents at the beginning of the year

779
17,557
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR5,255
779
(a) REPORTING ENTITY
The reporting entity is the consolidated group comprising The New Zealand Refining Company Limited (‘Parent’ or ‘Company’)
and its subsidiaries, Independent Petroleum Laboratory Limited, Maranga Ra Holdings Limited and Maranga Ra Limited (the Group).
The New Zealand Refining Company is a limited liability company incorporated and domiciled in New Zealand with its registered
office at Marsden Point, Whangarei, New Zealand. All subsidiaries have a balance date aligned with the reporting date of the
Parent company.
The Parent operates New Zealand’s only oil refinery at Marsden Point near Whangarei as a toll refiner, and owns and operates a
pipeline, running from the refinery at Marsden Point to Wiri, located in South Auckland, transporting refined fuels for consumption
within the Auckland and Waikato markets. Independent Petroleum Laboratory provides specialised fuels, biofuels, and industrial and
environmental laboratory testing services. Maranga Ra Holdings Limited and Maranga Ra Limited were incorporated in December 2019,
ahead of the Company’s investment in the proposed solar farm development adjacent to the Refinery. These entities had no assets or
liabilities as at balance date.
The New Zealand Refining Company Limited is registered under the Companies Act 1993, is listed on the New Zealand Stock Exchange
(NZX) and is an FMC Reporting Entity under the Financial Markets Conduct Act 2013 (‘FMC Act 2013’).
These consolidated financial statements were approved by the Directors on 26 February 2020.
(b) BASIS OF PREPARATION
These consolidated financial statements comply with:
• The Financial Markets Conduct Act 2013;
• Generally Accepted Accounting Practice (GAAP);
• New Zealand equivalents to International Financial Reporting Standards (‘NZ IFRS’), International Financial Reporting Standards
(IFRS) and other authoritative pronouncements of the External Reporting Board, as appropriate for for-profit entities.
The consolidated financial statements are prepared on the basis of historical cost, except for derivative financial instruments and plan
assets (included in the net defined benefit pension plan liability) which are measured at fair value.
The consolidated financial statements are prepared on a GST exclusive basis.
Functional and presentation currency
These consolidated financial statements are presented in New Zealand dollars ($) which is the Group’s functional currency, and the
financial information has been rounded to the nearest thousand dollars ($000), unless otherwise stated.
Consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date
that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation.
Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred.
The above Consolidated Statement of Cash Flows is to be read in conjunction with the notes on pages 09 to 57.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20190809

Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Use of judgements and estimates
The preparation of 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.
The following areas involve estimates and assumptions that can significantly affect the amounts recognised in the consolidated
financial statements:
• Useful lives of the property, plant and equipment
The Group reassessed the remaining useful lives of the assets associated with the distribution segment (including the Refinery
to Auckland Pipeline). As a result of the remaining life assessment carried out by independent pipeline experts, Rosen Group,
and valuation specialist BECA Limited, the weighted average remaining useful life has been extended from 19 to 31 years
(resulting in a decrease in annual depreciation by approximately $2 million). The remaining useful lives of the assets
associated with the refining assets are considered appropriate.
• Impairment assessment of assets
The carrying value of the Group’s assets were tested for impairment as at 31 December 2019. Key judgements underpinning
this assessment include:
- The Parent Company’s site consents and jetty lease will be renewed prior to expiry in May 2022 and September 2024,
respectively, and
- The Parent Company will enter the New Zealand Emissions Trading Scheme as an Energy Intensive Trade Exposed entity when
the Negotiated Greenhouse Agreement with the Crown expires in January 2023.
It is the opinion of Management that the risks of the not gaining environmental consents on a commercially acceptable basis or not
entering into the New Zealand Emissions Trading Scheme as an Energy Intensive Trade Exposed entity are relatively low.

On this basis, 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. Not renewing the site consents or jetty lease, or renewing for a
significantly shorter period of time than expected, would result in an impairment.

Management and the Board have used their refining industry experience and external sources of information, where appropriate,
to determine their expectations of the future. The key assumptions used in the impairment testing are outlined below. While
the sensitivities outlined in the following table highlight the absolute movement in each key assumption that would result in the
elimination of the excess of recoverable amount over carrying amount, a lesser movement in a combination of each of those key
assumptions could also lead to a similar result.
KEY ASSUMPTION
UNIT
VALUE
ATTRIBUTED
SENSITIVITY
(ABSOLUTE MOVEMENT)
Gross refiners margin
US$/bbl4.9 – 8.1 (median 7.4)Decrease by 0.9 (median)
Exchange rateUS$0.63Increase by 0.07
Refinery throughput mbbl42Decrease by 5
Discount rate
%7.7Increase by 2.5
Estimates are designated by an
E
symbol in the notes to the consolidated financial statements.
(c) SIGNIFICANT ACCOUNTING POLICIES
Accounting policies are disclosed within each of the applicable notes to the consolidated financial statements and are designated
by a
P
symbol.
The principal accounting policies applied in the preparation of these consolidated financial statements have been consistently applied
to all periods presented except in relation to the new lease standard.
New and amended standards adopted by the Group
The Group has adopted NZ IFRS 16 ‘Leases’ for the first time in the annual 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 9, Lease liabilities.
There were no other new and amended standards issued by the International Accounting Standards Board (IASB) or the New Zealand
Accounting Standards Board (NZASB) mandatory for the year ended 31 December 2019, that were considered to have a material impact
to the Group.
New and amended standards not yet effective and not early adopted by the Group
The IASB has issued a number of standards, amendments and interpretations which are not yet effective and which may have an impact
on the Group’s consolidated financial statements.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20191011

PAGE
PERFORMANCE 13
1 Segment reporting 13
2 Income and expenses 16
3 Related parties 19
4 Taxation 22
5 Earnings per share 23
DEBT AND EQUITY 24
6 Equity 24
7 Dividends 25
8 Borrowings 25
9 Lease liabilities 27
OPERATING ASSETS AND LIABILITIES 30
10 Property, plant and equipment, and intangibles 30
11 Operating leases 34
12 Capital commitments 34
13 Provisions 35
14 Trade and other receivables 36
15 Cash and cash equivalents 37
16 Inventories 38
17 Trade and other payables 39
18 Employee benefits 40
FINANCIAL RISK MANAGEMENT 47
19 Financial risk management 47
20 Derivative financial instruments 52
OTHER 55
21 Employee share-based payments 55
22 Contingent liabilities 56
23 Auditor’s fees 56
Notes to the Consolidated
Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
PERFORMANCE
This section focuses on Refining NZ’s financial performance and the returns provided to equity holders. The following notes are included:
Note 1: Segment reporting
Note 2: Income and expenses
Note 3: Related parties
Note 4: Taxation
Note 5: Earnings per share
1. SEGMENT REPORTING
(a) Identification and description of reportable segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Leadership Team, identified as the
chief operating decision-maker. The Leadership Team reviews the Group’s internal reporting of oil refining and distribution separately
in order to assess their performance and allocate resources. The operating segments, based on these reports are as follows:
Oil Refining
The Parent 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 Parent owns infrastructure to support the distribution of manufactured products to its customers. The Refinery to Auckland Pipeline
(RAP) transfers product to the Wiri Oil terminal located in South Auckland (refer note 3).
Other
Other includes the subsidiary companies’ 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 companies (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.
Revenue derived from major customers, and the relevant operating segments, is disclosed in note 3.
(b) Reporting measures
The performance of the operating segments is based on earnings before depreciation, finance costs and income tax and net profit after
income tax. This information is measured in a manner consistent with that in the consolidated financial statements.
The Group manages assets and liabilities on a central basis and therefore does not provide any segment information of this nature.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20191213
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

1. SEGMENT REPORTING (continued)
(c) Segment results
1. SEGMENT REPORTING (continued)
NOTEOIL REFININGDISTRIBUTIONOTHERTOTAL
$000$000$000$000
31 DECEMBER 2019
Total revenue
297,836 42,998 9,760 350,594
Inter-segment revenue
- - (5,733)(5,733)
REVENUE FROM EXTERNAL CUSTOMERS297,836 42,998 4,027 344,861
Other income
222
2- 2,035 1,479 3,514
Earnings before depreciation, finance costs and income tax
76,724 37,347 4,164 118,235
Finance income
38 - 6 44
Finance cost
(13,488)- (1)(13,489)
Depreciation and disposal costs
(95,527)(3,779)(625)(99,931)
Income tax
9,575 (9,399)(870)(694)
Net (loss)/profit after income tax
(22,678)24,169 2,674 4,165
NOTEOIL REFININGDISTRIBUTIONOTHERTOTAL
$000$000$000$000
31 DECEMBER 2018
Total revenue304,509 50,613 9,336 364,458
Inter-segment revenue
- - (5,142)(5,142)
REVENUE FROM EXTERNAL CUSTOMERS
304,509 50,613 4,194 359,316
Other income-2,8902603,150
Earnings before depreciation, finance costs and income tax
2
105,398 44,845 2,404 152,647
Finance income102 - 2 104
Finance cost(13,892)- (12)(13,904)
Depreciation and disposal costs(89,648)(6,868)(559)(97,075)
Income tax
(1,078)(10,634)(444)(12,156)
Net profit after income tax
882 27,343 1,391 29,616
The earnings before depreciation, finance costs and income tax and depreciation and net profit after income tax of the distribution and
other segments are before exclusion of inter-segment revenue and costs.
42,998
297,836
4,027
Oil Refining
Distribution
Other
REVENUE FROM EXTERNAL CUSTOMERS ($000)
50,613
304,509
4,194
2019
$000
2018
$000
37,347
44,845
76,724
105,398
4,1642,404
Oil Refining
Distribution
Other
EARNINGS BEFORE DEPRECIATION, FINANCE COSTS AND INCOME TAX ($000)
2019
$000
2018
$000
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20191415
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

2. INCOME AND EXPENSES
P
Revenue is recognised when control of a good or service transfers to a customer. Processing fees, pipeline fees and other
services provided by the Group are identified as distinct performance obligations which are satisfied over time and for which
a transaction price is separately determined and allocated. No significant judgement is involved in the price determination and
allocation. An output method is applied to measure progress of the services provided. The Group does not have contracts with
customers where significant financing components, non-cash considerations or consideration payable to customers, obligations
for refunds or specific warranties would be existent. Specific accounting policies are as follows:
Refining revenue

Processing fees and other processing related fees, such as blending and reprocessing (presented as “Other refining related
income”) are recognised over time as processing services are delivered. The revenue from processing and other processing related
fees is recognised in the amounts invoiced, applying paragraph B16 of NZ IFRS 15 ‘Revenue from Contracts with Customers’,
reflecting actual volumes processed (including intermediate products), adjusted for fee floor and cap, when applicable.
The cost of natural gas, used by the Parent in the refining process, is recovered from customers and presented as a component
of refining revenue; the Parent acts as principal with respect to procuring and selling natural gas.
Distribution revenue
Pipeline and terminalling fee revenue is recognised over time as refined products are delivered to the Wiri Oil terminal in South
Auckland, and in the amount to which the Group has a right to invoice customers, applying the practical expedient in NZ IFRS 15,
within an operating period.
Rental income from operating leases (including Wiri Oil terminal rental) is recognised on a straight-line basis in accordance with
the substance of the relevant agreements.
Other revenue
Revenue from other contracts (primarily relating to provision of services) is recognised over time as goods or services are
delivered to customers.
2. INCOME AND EXPENSES (continued)
Net profit before income tax includes the following income and expenses:
GROUPGROUP
20192018
NOTE$000$000
REVENUE
Processing fees
241,970
258,873
Natural gas recovery
39,579
31,987
Other refining related income
16,287
13,649
Refining revenue
297,836
304,509
Pipeline and terminalling fee revenue
36,473
44,088
Wiri land and terminal lease income
11
6,525
6,525
Distribution revenue
42,998
50,613
Other operating income
4,027
4,194
TOTAL REVENUE344,861
359,316
OTHER INCOME
Other income
3,514
3,150
TOTAL OTHER INCOME3,514
3,150
TOTAL INCOME348,375
362,466
And charging:
Process materials and utilities
58,502
49,153
Natural gas
39,580
31,987
PURCHASE OF PROCESS MATERIALS AND UTILITIES98,082
81,140
Contractor payments
23,433
20,856
Materials
7,752
8,124
Obsolescence provision recognised
155
23
TOTAL MATERIALS AND CONTRACTOR PAYMENTS31,340
29,003
Wages and salaries
55,324
55,854
Defined contribution pension plan contributions
1,771
1,597
Defined benefit pension plan expense
18(j)
3,685
3,272
Medical plan contributions
18(j)
226
242
Equity-settled share-based payments
21
241
303
TOTAL WAGES, SALARIES AND BENEFITS61,247
61,268
Administration and other expenses
23
4,099
5,962
Contract services
17,158
16,202
Consultants
6,721
4,873
Insurance
4,830
3,964
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20191617
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

2. INCOME AND EXPENSES (continued)
GROUPGROUP
20192018
NOTE$000$000
Rates
1,187
1,282
Employee related costs
4,005
4,151
Directors' fees
795
780
Operating lease expenses:
Wiri Oil land rental
500
500
Other
-
523
Donations
176
171
TOTAL ADMINISTRATION AND OTHER COSTS39,471
38,408
Depreciation of property, plant and equipment
10
99,058
96,424
Depreciation of right-of-use assets
9
440
-
Loss on disposal of property, plant and equipment
10
433
651
TOTAL DEPRECIATION AND DISPOSAL COSTS99,931
97,075
Interest expense:
Bank borrowings
11,107
13,975
Subordinated notes
3,894
243
Restoration provision finance charge
254
345
Finance leases
9
342
-
Interest capitalised to qualifying asset
(2,108)
(659)
TOTAL FINANCE COSTS
13,489
13,904
Finance income:
Interest income on short-term bank deposits
(44)
(104)
TOTAL FINANCE INCOME(44)
(104)
NET FINANCE COSTS13,445
13,800
TOTAL COSTS343,516
320,694
NET PROFIT BEFORE INCOME TAX
4,859
41,772
Insurance recoveries
Following the Refinery to Auckland pipeline rupture on 14 September 2017, the Parent Company incurred costs associated with repairs
to the pipeline and the recovery and remediation of the leak site which was completed in May 2018.
The Company had insurance policies to cover both environmental remediation and loss of revenue following the incident. In this
financial year the Company recognised $2.1 million of insurance recoveries as “Other income” (2018: $1.8 million) under the material
damage and business interruption policy for loss of revenue.
3. RELATED PARTIES
(a) Shareholders and other related parties
The Group enters into transactions with the oil companies who are also shareholders of the Parent, and Wiri Oil Services Limited
(Wiri Oil), a company that is owned by shareholders of the Parent.
Details of shareholdings at 31 December are:
20192018
%%
BP New Zealand Holdings Limited (BP)
10.10
10.10
Mobil Oil NZ Limited (Mobil)
17.20
17.20
Z Energy Limited (Z Energy)
15.36
15.36
The nature, transactions and balances with the shareholders and other related parties are as follows:
(i) REVENUE FROM RELATED PARTIES
Revenue from the oil refining and distribution segments is derived from the oil companies as follows:
TRANSACTION VALUES FOR THE
YEAR ENDED 31 DECEMBER
BALANCES OUTSTANDING
AS AT 31 DECEMBER
2019201820192018
$000$000$000$000
BP
89,066
90,661
38,060
32,766
Mobil
80,894
83,567
32,955
26,420
Z Energy
151,836
164,164
68,080
74,365
Wiri Oil
7,073
7,047
29
24
TOTAL
328,869
345,439
139,124
133,575
Processing fees
The Group has separate processing agreements with each of the three oil companies which have been in place since 1995. They are
long-term “evergreen” contracts which continue unless renegotiated or terminated by mutual consent or by a customer on one year’s
notice. 93% (2018: 94%) of the Group’s total operating revenue is earned under the processing agreements. Refer to note 19(a) for
further details.
Leases
The Parent leases land from Wiri Oil Services Limited (Wiri Oil) and owns the Wiri Oil terminal (plant) located on this land. The land
and plant is leased back to Wiri Oil. The leases are non-cancellable operating leases, which expire in February 2025 with no right of
renewal. At the end of the lease term, ownership of the Wiri Oil terminal reverts to Wiri Oil Services Limited.
Excise duty
Excise duty is collected from the Oil Companies and paid to the New Zealand Customs Service on the same day each month (refer notes
14 and 17) and is included in the above balances outstanding as at 31 December.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20191819
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

3. RELATED PARTIES (continued)
(ii) PURCHASES OF GOODS AND SERVICES
The Group purchases sulphur, a by-product of the refining process, which is on sold to third parties, and other fuels, from related parties
as follows:
TRANSACTION VALUES FOR THE
YEAR ENDED 31 DECEMBER
BALANCES OUTSTANDING
AS AT 31 DECEMBER
2019201820192018
$000$000$000$000
BP
735
1,087
-
170
Mobil
311
996
-
145
Z Energy
1,133
2,689
185
328
TOTAL
2,179
4,772
185
643
(iii) OTHER CHARGES
A portion of the Group’s material damage and business interruption and contract works and liability insurance is held by companies
related to shareholders.
TRANSACTION VALUES FOR THE
YEAR ENDED 31 DECEMBER
BALANCES OUTSTANDING
AS AT 31 DECEMBER
2019201820192018
$000$000$000$000
BP – Jupiter Insurance Ltd
702
619
-
-
ExxonMobil (Ancon)
331
-
-
-
TOTAL
1,033
619
-
-
3. RELATED PARTIES (continued)
(b) Directors’ fees and key management personnel compensation
Directors’ fees are disclosed in note 2.
Key management personnel include all members of the Leadership Team.
GROUPGROUP
20192018
$000$000
Salaries and other short-term employee benefits
3,929
4,489
Post-employment benefits
139
160
TOTAL KEY MANAGEMENT PERSONNEL COMPENSATION4,068
4,649
Number of personnel at 31 December
8
8
The above analysis is compiled on a cash basis; variable performance rewards (linked to individual and business performance for a
financial reporting period) are paid subsequent to balance date and reported as part of payments to key management personnel for
the following year.
Key management personnel compensation in 2018 includes the short term incentives paid to the former CEO (Sjoerd Post) and members
of the leadership team in respect of the 2017 performance year. The 2018 total key management personnel compensation include:
• the short term incentives paid to the former CEO and members of the leadership team in respect of the 2017 performance year, and,
• $600 thousand paid to the former CEO in respect of the 2018 performance year, comprising: a pro-rata short term incentive payment
pursuant to the achievement of 2018 key performance indicators and an additional discretionary payment, pursuant to the terms of
his employment agreement, in recognition of an agreed contract extension.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20192021
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

4. TAXATION
(a) Income tax expense
P
The income tax expense for the year is the tax payable on the current year’s taxable income based on the New Zealand income
tax rate on the basis of the tax laws enacted or substantively enacted at the end of the reporting period, adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements and to unused tax losses.
GROUPGROUP
20192018
NOTE$000$000
NET PROFIT BEFORE INCOME TAX EXPENSE4,859
41,772
Tax at the New Zealand corporate income tax rate of 28% (2018: 28%)
1,361
11,696
Tax effect of amounts which are either non-deductible or taxable in
calculating taxable income:
Income not assessable for tax
(203)-
Expenses not deductible for tax
61
285
Adjustments in respect of current income tax in respect of previous years
(525)
175
INCOME TAX EXPENSE, REPRESENTED BY:694
12,156
Current tax expense
457
1,704
Deferred tax recognised in the income statement
4(b)
237
10,452
(b) Deferred tax
P
Deferred tax assets and liabilities arise from temporary differences between the tax base of assets and liabilities and their
carrying amounts in the consolidated financial statements, and are recognised for temporary differences at the tax rates expected
to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively
enacted. An exception is made for certain temporary differences arising from the initial recognition of an asset or liability.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised in other comprehensive income or directly in equity are
also recognised in other comprehensive income or directly in equity, respectively.
4. TAXATION (continued)
DEFERRED TAX LIABILITY/(ASSET)
PROPERTY,
PLANT AND
EQUIPMENT
PROVISIONSEMPLOYEE
BENEFITS
FINANCIAL
INSTRUMENTS
TAX
LOSSES
TOTAL
NOTE$000$000$000$000$000$000
1 JANUARY 2018
139,218 (4,129)(9,587)(2,378)- 123,124
Deferred tax in respect of
previous years
(899)(197)12 - - (1,084)
Deferred tax in respect of
current year
17,018 (82)(790)- (4,610)11,536
Deferred tax recognised in
the income statement
4(a)16,119 (279)(778)- (4,610)10,452
Included in other
comprehensive income
- - (4,487)2,200 - (2,287)
31 DECEMBER 2018
155,337 (4,408)(14,852)(178)(4,610)131,289
Deferred tax in respect of
previous years
(159)(118)36 - (284)(525)
Deferred tax in respect of
current year
1,238 (175)(347)- 46 762
Deferred tax recognised in
the income statement
4(a)1,079 (293)(311)- (238)237
Included in other
comprehensive income
- - 2,151 (866)- 1,285
31 DECEMBER 2019
156,416 (4,701)(13,012)(1,044)(4,848)132,811
The Group has unused tax losses of $17.3 million (2018: $16.5 million) available to carry forward.
5. EARNINGS PER SHARE
P
Earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted average
number of ordinary shares on issue during the year. The Company’s share-based payments described in note 21 have no material
dilutive effect on the earnings per share.
TOTALTOTAL
NOTE20192018
Profit after tax attributable to shareholders of the Company ($000)
4,165
29,616
Weighted average number of shares on issue (000’s)
6
312,177
312,243
BASIC AND DILUTED EARNINGS PER SHARE
1.3
9.5
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20192223
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

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 (refer note 8). 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 6: Equity
Note 7: Dividends
Note 8: Borrowings
Note 9: Lease liabilities
6. EQUITY
Contributed equity
The issued capital of the Company is represented by 312,576,453 no par value ordinary shares (2018: 312,576,453) issued and fully paid,
less 417,644 (2018: 375,848) treasury shares held by CRS Nominees Limited (refer to note 21). All ordinary shares rank equally with one
vote attached to each ordinary share.
Treasury stock
Treasury stock represents the value of shares acquired by the Parent on-market in respect of the Employee Share Purchase Scheme
(refer to note 21).
Employee share entitlement reserve
The employee share entitlement reserve is used to recognise the fair value of shares granted but not vested. Amounts are transferred
to share capital when the shares vest to the employee (refer to note 21).
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used
in cash flow hedges pending subsequent recognition in the income statement.
7. DIVIDENDS
CENTSTOTALTOTAL
PER20192018
SHARE$000$000
Final dividend for 2017
12.0
-
37,508
Interim dividend for 20183.0
-
9,377
Final dividend for 20184.5
14,067
-
Interim dividend for 2019
2.0
6,250
-
TOTAL
20,317
46,885
The dividends were fully imputed. Supplementary dividends of $0.750 million (2018: $1.532 million) were paid to shareholders who were
not tax residents in New Zealand for which the Group received a foreign investor tax credit entitlement.
Imputation credits available to shareholders for subsequent reporting periods amount to $23.589 million as at 31 December 2019
(2018: $30.441 million).
Dividend declared post balance date
The Group has declared no final dividend (2018: 4.5 cents per share).
8. BORROWINGS
P
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement for
at least 12 months after the balance date.
The chart below outlines the maturity profile of the borrowings:
Utilised Facilities (cash advance) Undrawn Facilities (cash advance) Subordinated notes
0
1–2 YEARS
0–1 YEAR
98,100
1,900
2–3 YEARS
74,000
6,000
3–4 YEARS
95,000
75,000*
5+ YEARS
120,000
100,000
80,000
60,000
40,000
20,000
120,000
100,000
80,000
60,000
40,000
20,000
$ 000
*The carrying value of the subordinated notes as at 31 December 2019 amounts to $74.5 million. The difference between the carrying value and the $75 million face value is due to
interest and issue costs. While the expiry date of the subordinated notes is on 1 March 2034, the maturity profile reflects the notes as maturing in 2024 on the basis that – as a
result of an election process – the Company may elect to either redeem the notes or offer new conditions to the noteholders.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20192425
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

8. BORROWINGS (continued)
The carrying amounts of borrowings approximate their fair value. The borrowings are unsecured. The Parent borrows under a negative
pledge arrangement which requires certain certificates and covenants, including debt to total debt and equity, security to tangible
assets and EBITDA to interest ratios. All of these requirements have been met.
The Parent has the ability to determine which revolving cash advance facility will be drawn upon to meet funding requirements.
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. In December 2019, the Company extended its $95 million facilities expiring in
March 2020 to March 2025. In addition, as at 31 December 2019 the Company held $35 million of uncommitted facilities. The purpose
of the uncommitted facilities is to support short dated debt drawings.

The table below presents the year end borrowings with their maturity dates, as well as undrawn facilities at 31 December:
GROUPGROUP
MATURITY20192018
DATE$000$000
BORROWINGS
Current borrowings:
Revolving cash advances
Mar-19
-
50,000
Total current bank borrowings
-
50,000
Non-current borrowings:
Revolving cash advances Mar-20
-
2,000
Revolving cash advances Mar-20
-
67,300
Revolving cash advancesMar-21
98,100
4,000
Revolving cash advances Mar-22
74,000
2,000
Term loanMar-21
-
60,000
Revolving cash advances Mar-25
-
-
Subordinated notes
Mar-34
74,516
73,301
Total non-current borrowings246,616
208,601
TOTAL BORROWINGS
246,616
258,601
EFFECTIVE INTEREST RATE
Bank loans
6.0%
5.6%
Subordinated notes
5.4%
5.4%
UNDRAWN FACILITIES
Revolving cash advances Mar-20
-
50,700
Revolving cash advances Mar-21
1,900
26,000
Revolving cash advances Mar-22
6,000
88,000
Revolving cash advances
Mar-25
95,000 -
TOTAL UNDRAWN BORROWING FACILITIES
102,900
164,700
9. LEASE LIABILITIES
Adoption of NZ IFRS 16 ‘Leases’
NZ IFRS 16 ‘Leases’ was issued in February 2016 and is mandatory for 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 not been previously recognised aa leases in accordance with either NZ IAS 17 ‘Leases’ or NZ IFRIC 4
‘Determining whether an Arrangement contains a Lease’.
The weighted average lessee’s incremental borrowing rate applied to lease liabilities recognised in the balance sheet at the date of
initial application was 4%. The variance between operating lease commitments disclosed at 31 December 2018 and Lease liabilities at
1 January 2019 is outlined in the table below:
GROUP
2018
$000
Operating lease commitments as at 31 December 2018
2,845
Discounted using the Group's incremental borrowing rate(189)
Add: finance lease liabilities recognised as at 31 December 20182,474
Less: short-term leases recognised on a straight-line basis as expense(204)
Less: contracts reassesed as service agreements(2,625)
Add: adjustments from a different treatment of extension and termination options
1,477
LEASE LIABILITY RECOGNISED AS AT 1 JANUARY 2019
3,778
Finance leases – Group as a lessee
P
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for
use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Each lease payment
is allocated between the liability and finance cost. The finance cost is charged to income statement over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is
depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense
in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20192627
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

9. LEASE LIABILITIES (continued)
The right-of-use assets are presented in the Group’s balance sheet separately and relate to the lease of:
• 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 13. 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.
There are no restrictions or covenants imposed by leases, or exposure arising from residual value guarantees. Extension and
termination options included in some leases are used to maximise operational flexibility in terms of managing contracts and are
exercisable by the Group.
The balance sheet shows the following amounts relating to right-of-use assets and lease liabilities:
GROUP
2019
$000
Right-of-use assets
Opening net book value
-
Right-of-use assets (adoption of IFRS 16)
2,140
Transfer of right-of-use assets from Property, Plant and Equipment
2,328
Right-of-use assets as at 1 January 2019
4,468
Depreciation charge
(440)
CLOSING NET BOOK AMOUNT
4,028
Cost
4,664
Accumulated depreciation
(636)
NET BOOK AMOUNT, INCLUDING:
4,028
Freehold land and improvements
209
Refining Plant
2,197
Catalysts
1,622
9. LEASE LIABILITIES (continued)
GROUP
2019
$000
Lease liabilities
Opening lease liability
2,474
Lease liability recognised as a result of adoption of IFRS 16
1,304
Lease liability as at 1 January 2019
3,778
Lease payments (capital portion)
(324)
CLOSING LEASE LIABILITY, INCLUDING:
3,454
Current
248
Non-current
3,206
The income statement includes the following amounts in relation to leases:
GROUP
2019
$000
Depreciation charge
440
Interest expense (included in Finance costs)
342
Expense relating to short-term leases (included in Administration and other costs)
220
Expense relating to leases of low-value assets that are not short term leases
(included in Administration and other costs)
609
The total cash outflow for leases in 2019 was $1,154 thousand.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20192829
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

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. Taxation assets and liabilities are
detailed in the Performance section of these Notes.
This section includes the following Notes:
Note 10: Property, plant and equipment, and intangibles
Note 11: Operating leases
Note 12: Capital commitments
Note 13: Provisions
Note 14: Trade and other receivables
Note 15: Cash and cash equivalents
Note 16: Inventories
Note 17: Trade and other payables
Note 18: Employee benefits
10. PROPERTY, PLANT AND EQUIPMENT, AND INTANGIBLES
P

Property, plant and equipment and intangibles are initially recognised at cost which includes expenditures directly attributable to
the acquisition. Cost also includes any transfers from the cash flow hedge reserve (as a basis adjustment) and borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced asset is derecognised.
Major inspections associated with planned plant shutdowns and tank maintenance are capitalised at cost and recognised
in the carrying amount of the refining plant, provided the recognition criteria are met.
When an asset is disposed of, any gain or loss on disposal is calculated as the difference between the disposal proceeds and
the carrying value of the asset, and is recognised as a gain or loss on disposal of property, plant and equipment and presented
in ‘Other gains’ or ‘Total depreciation and disposal costs’ in the Income Statement.
Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised in the Consolidated Income Statement for the amount by
which the asset’s carrying amount exceeds its recoverable amount, being the higher of an asset’s fair value less costs to sell and
its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units).
Depreciation is provided on a straight-line basis on all property, plant and equipment other than freehold land, capital work in
progress and precious metals (rhenium, platinum) contained in certain catalysts.
Intangibles relate to 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 Company is in dialogue with the Government to include Refining NZ in the ETS as Energy Intensive Trade Exposed at the
expiry of the NGA. 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).
The capital work in progress as at 31 December 2019 has been assessed by management, company project engineers and project
managers as being recoverable.
10. PROPERTY, PLANT AND EQUIPMENT, AND INTANGIBLE (continued)
During the financial year there have been no significant changes in estimates relating to useful lives of assets. The useful lives applied
are as follows:
USEFUL LIVES
(YEARS)
Freehold improvements
5-50
Buildings and jetties5-50
Refining plant
– tankage40-50
– rotating equipment20-30
– piping20-50
– vessels and columns25-40
– instruments10-15
– electrical and electrical cabling15-25
– plant shutdown and tank maintenance2-20
– other refining plant10-65
Catalysts3-10
Refinery to Auckland Pipeline
– pipeline78
– plant and equipment10-34
Wiri Oil terminal (leased)20
Equipment and vehicles
3-25
Property, plant and equipment are included in the negative pledge arrangement as detailed in note 8.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20193031
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

10. PROPERTY, PLANT AND EQUIPMENT, AND INTANGIBLES (continued)
FREEHOLD LAND
AND
IMPROVEMENTS
BUILDINGS
AND
JETTIES
REFINING
PLANT
CATALYSTSREFINERY TO
AUCKLAND
PIPELINE
WIRI OIL
TERMINAL
(LEASED)
(note 3)
EQUIPMENT
AND VEHICLES
CAPITAL WORK
IN PROGRESS
TOTALINTANGIBLES
$000$000$000$000$000$000$000$000$000$000
AT 1 JANUARY 2018
Cost74,430 198,344 2,733,237 83,349 222,247 44,167 124,869 121,518 3,602,161 8,148
Accumulated depreciation
(52,630)(97,366)(2,033,615)(46,575)(114,568)(41,014)(87,460)-(2,473,228)-
NET BOOK AMOUNT
21,800 100,978 699,622 36,774 107,679 3,153 37,409 121,518 1,128,933 8,148
YEAR ENDED 31 DECEMBER 2018
Opening net book value21,800 100,978 699,622 36,774 107,679 3,153 37,409 121,518 1,128,933 8,148
Additions/transfers3,835 1,947 153,895 14,190 6,103 - 10,654 (30,534)160,090 8,183
Disposals- - - (633)(1)- (17)- (651)(2,022)
Depreciation/amortisation charge
(1,349)(4,492)(68,979)(9,046)(5,365)(428)(6,765)- (96,424)-
CLOSING NET BOOK AMOUNT
24,28698,433784,53841,285108,4162,72541,28190,9841,191,94814,309
AT 31 DECEMBER 2018
Cost78,265 200,291 2,887,124 80,885 224,497 44,167 129,739 90,984 3,735,952 14,309
Accumulated depreciation
(53,979)(101,858)(2,102,586)(39,600)(116,081)(41,442)(88,458)- (2,544,004)-
NET BOOK AMOUNT
24,286 98,433 784,538 41,285 108,416 2,725 41,281 90,984 1,191,948 14,309
YEAR ENDED 31 DECEMBER 2019
Opening net book value
24,286 98,433 784,538 41,285 108,416 2,725 41,281 90,984 1,191,948 14,309
Additions/transfers
4,078 652 78,478 4,206 125 - 4,480 (13,175)78,844 7,828
Disposals
- -
-
(1)- - (2)(430)(433)-
Depreciation charge
(1,567)(4,744)(72,701)(10,057)(3,389)(390)(6,210)- (99,058)-
CLOSING NET BOOK AMOUNT26,79794,341790,31535,433105,1522,33539,54977,3791,171,30122,137
AT 31 DECEMBER 2019
Cost
82,343 200,943 2,903,133 84,856 224,621 44,042 134,204 77,379 3,751,521 22,137
Accumulated depreciation
(55,546)(106,602)(2,112,818)(49,423)(119,469)(41,707)(94,655)- (2,580,220)-
NET BOOK AMOUNT
26,797 94,341 790,315 35,433 105,152 2,335 39,549 77,379 1,171,301 22,137
During the year the Group has capitalised borrowings costs amounting to $2.1 million (2018: $0.7 million) on qualifying assets.
Borrowings costs were capitalised at the weighted average rate of its general borrowings of 5.9% (2018: 5.6%).
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20193233
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

11. OPERATING LEASES
P

Lease income from operating leases, where the Group is a lessor, are recognised as income on a straight-line basis over the
period of the lease.
The Group leases land and refining plant to Wiri Oil Services Limited (refer to note 3) under a non-cancellable operating lease which
expires in February 2025 with no right of renewal. The annual Wiri land and terminal lease income and cost associated with the Wiri Oil
land rental are disclosed in note 2.
GROUPGROUP
20192018
$000$000
Lease payments receivable from operating leases where the Group is a lessor
– No later than one year
6,609
6,609
– One to five years
21,248
26,225
– Beyond five years
-
1,631
TOTAL
27,857
34,465
12. CAPITAL COMMITMENTS
P
Commitments are presented for asset purchases contracted as at the reporting date but not provided for in the consolidated
financial statements.
GROUPGROUP
20192018
$000$000
Capital commitments in relation to property, plant and equipment
28,054
19,103

13. PROVISIONS
P
Provisions are recognised when the Group has a legal or constructive obligation as a result of past events, and it is more likely
than not that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.
GROUPGROUP
20192018
$000$000
Jetty restoration provision
11,776
10,866
Platinum reclamation provision
867
-
PROVISIONS
12,643
10,866
The 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 platinum reclamation provision relates to leased platinum recognised on transition to NZ IFRS 16 ‘Leases’ (refer to note 9 for
further details).
P
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.
Changes in the estimates during the year are recorded as a change in the restoration provision and the respective asset.
Increase in the provision due to passage of time (unwinding of discount) is recognised as finance costs.
E
The present value of the restoration provision depends on a number of assumptions including estimated timing, restoration costs
and the discount rate used. Management assesses the appropriateness of the assumptions at each balance date. Any changes
in these assumptions will impact the carrying amount of the restoration provision.
This provision may be utilised at the lease expiry in 2025, however the expectation is that the agreement will be renegotiated
for a further term. An interest rate of 1.83% (2018: 2.74%) has been applied and set with reference to New Zealand Government
Bonds as a risk free rate.
GROUPGROUP
20192018
$000$000
AT 1 JANUARY
10,866
9,888
Platinum reclamation provision (adoption of IFRS16)
850
-
Unwinding of discount
271
345
Change in discount rate
656
633
AT 31 DECEMBER
12,643
10,866
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20193435
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

15. CASH AND CASH EQUIVALENTS
P
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts.
In the Consolidated Statement of Cash Flows, the deposits placements and withdrawals and bank borrowings receipts and
repayments are presented on a net basis as their turnover is quick, amounts are large and the maturities are relatively short.
The below presents a reconciliation of net cash flow from operating activities to reported profit:
GROUPGROUP
20192018
NOTE$000$000
NET PROFIT AFTER INCOME TAX
4,165
29,616
Adjusted for:
Depreciation and disposal costs
2
99,931
97,075
Movement in deferred tax
4(b)
1,522
8,165
Add movement in deferred tax on items included in other comprehensive income
4(b)
(1,285)
2,287
Movement in provisions
13
1,777
978
Less increase in restoration provision relating to property, plant and equipment and
right-of-use assets
13
(1,491)
(633)
Employee share scheme entitlement reserve
21
241
303
Increase in intangibles
10
(7,828)
(6,161)
Interest and other non-cash movements
620
(386)
Impact of changes in working capital items
Decrease in trade and other receivables
14
7,649
3,982
Increase/(decrease) in trade and other payables
17
18,457
(23,638)
Less (decrease)/increase in trade and other payables relating to property, plant and
equipment and intangibles
(712)3,517
(Decrease)/increase in employee benefits
18
(9,280)
18,131
Less employee entitlements included in other comprehensive income
18(k)
7,681
(16,024)
(Increase) in income tax receivable
(4,501)
(9,847)
(Decrease)/increase in inventories
16
179
(2,729)
NET CASH INFLOW FROM OPERATING ACTIVITIES
117,125
104,636
14. TRADE AND OTHER RECEIVABLES
P

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
rate method, less impairment. Trade receivables are measured at amortised cost on the basis that they are held within a business
model in order to collect, on specified dates, contractual payments of principal.
GROUPGROUP
20192018
NOTE$000$000
Processing fees
4,096
15,532
Product distribution
3,773
5,245
Other trade receivables
4,023
3,008
Excise duty
17
127,581
112,102
Derivatives pending settlement
1,645
11,599
Other receivables and prepayments
3,945
5,226
TOTAL TRADE AND OTHER RECEIVABLES
145,063
152,712
Trade receivables in respect of processing fees and distribution are due from customers, and non-interest bearing and are normally
settled on 7 to 21 day terms.
Excise duty receivable is due from customers and collected by the Parent on behalf of the New Zealand Customs Service and paid on
the same day each month (corresponding offset is presented as a payable in note 17).
Other receivables and prepayments generally arise from transactions outside the usual operating activities of the Group, for example
prepaid insurance premiums.
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for
the time value of money.
No allowance for impairment loss has been recognised as at 31 December 2019 (2018: Nil). Credit risk disclosures required pursuant to
NZ IFRS 9 are outlined in note 19(b).
The carrying value of trade receivables approximates their fair values.
Trade and other receivables related party balances are disclosed in note 3.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20193637
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

16. INVENTORIES (continued)
E
Inventories are reviewed annually for impairment. The inventory obsolescence depends on a number of assumptions, including
age and condition of each of the individual inventory items. As at 31 December 2019 management has written down the carrying
value of some inventories to estimated net realisable value, taking into account the above assumptions.
The consumption of inventories and any associated write downs are recognised as part of Purchase of process materials and utilities
and Materials and contractor payments as disclosed in note 2.
Inventories are included in the negative pledge arrangement (refer note 8).
17. TRADE AND OTHER PAYABLES
P

Trade payables, including collected excise duty, are initially recognised at amounts payable.
GROUPGROUP
20192018
NOTE$000$000
Trade payables
31,967
29,677
Goods services tax payable
1,847
3,783
Deferred income
10
9,623
6,999
Excise duty
14
127,581
112,102
TOTAL TRADE AND OTHER PAYABLES
171,018
152,561
Trade payables are unsecured, non-interest bearing and are usually paid within 30 days of recognition.
Changes to excise duties have no direct impact on the results of the Group as they are collected from the oil companies (note 14)
and paid to the New Zealand Customs Service on the same day each month.
Deferred income relates to the New Zealand Units (NZUs) received in advance – refer to note 10.
Trade and other payables related party balances are disclosed in note 3.
15. CASH AND CASH EQUIVALENTS (continued)
The below sets out an analysis of the Group’s liabilities for which cash flows have been, or will be, classified as financing activities in
the statement of cash flows:
CASH
AND CASH
EQUIVALENTS
FINANCE
LEASE DUE
WITHIN
ONE YEAR
FINANCE
LEASE DUE
AFTER ONE
YEAR
BORROWINGS
DUE WITHIN
ONE YEAR
BORROWINGS
DUE AFTER
ONE YEAR
TOTAL
$000$000$000$000$000$000
NET DEBT AS AT 1 JANUARY 2018
(17,557)222 2,473 - 170,000 155,138
Cash flows16,778 - - - 88,601 105,379
Finance lease- (222)- - - (222)
Other non-cash movements
- 171 (171)50,000 (50,000)-
NET DEBT AS AT 1 JANUARY 2019
(779)171 2,302 50,000 208,601 260,295
Cash flows
(4,476)- - (50,000)36,800 (17,676)
Finance lease
- (171)(152)- - (323)
Adoption of IFRS 16 ‘Leases’
- 153 1,151 - - 1,304
Other non-cash movements
- 95 (95)- 1,215 1,215
NET DEBT AS AT 31 DECEMBER 2019
(5,255)248 3,206 - 246,616 244,815
Cash and cash equivalents include $4,777 thousand (2018: $2 thousand) held by Refining NZ’s electricity futures broker as collateral.
16. INVENTORIES
P

Inventories comprise spare parts and consumables, and are stated at the lower of cost, determined using the weighted average
cost method, or net realisable value.
Inventories are classified as current assets where usage is expected to be within 12 months and as non-current assets where
usage is expected after 12 months.
GROUPGROUP
20192018
$000$000
INVENTORIES
Current inventories:
Inventories at weighted average cost
3,774
3,471
Obsolescence provision
(434)
(497)
Total current inventories3,340
2,974
Non-current inventories:
Inventories at weighted average cost
23,776
24,103
Obsolescence provision
(4,366)
(4,148)
Total non-current inventories19,410
19,955
TOTAL INVENTORIES
22,750
22,929
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20193839
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

18. EMPLOYEE BENEFITS (continued)
(a) Defined benefit pension plan
Nature of benefits
Total membership of the scheme as at 31 December 2019 was 196 (2018: 199). This total membership includes 66 (2018: 74) current
staff members contributing to the scheme, who have pension entitlements based on final salary and membership. At retirement,
members may elect to exchange part, or all, of their pension for a cash lump sum. The balance of the membership of the Plan is 123
(2018: 118) pensioners receiving regular pension payments; and 7 (2018: 7) members receiving disability pensions, which can be paid
from the Plan until normal retirement age.
Description of regulatory framework
The Financial Markets Authority licenses and supervises regulated superannuation schemes. The Fund is an employer related restricted
workplace savings scheme under the Financial Markets Conduct Act 2013 (the Act).
The Act requires an actuarial valuation to be performed for each defined benefit superannuation scheme at least every three years
to assess whether the Company’s current level of contributions to the Plan is sufficient to meet future obligations (funding valuation).
For detail regarding the latest funding valuation see note 18(h).
At each balance date an accounting update is performed by an independent actuary in accordance with NZ IAS 19 “Employee Benefits”
for recording in the Consolidated Balance Sheet. The last full actuarial valuation performed under the Superannuation Schemes Act
1989 was as at 31 March 2019.

Description of other entities’ responsibilities for the governance of the fund
The Trustees of the Fund are responsible for the governance of the Fund. The Trustees are appointed by the Company and have a legal
obligation to act solely in the best interests of the Fund beneficiaries. The Trustees have the following roles:
• Administration of the Fund and payment to the beneficiaries from Plan assets when required in accordance with the Plan rules.
• Management and investment of the Plan assets.
• Compliance with superannuation law and other applicable regulations.
Description of risks
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. There are a number of risks that could expose the Company to such a
shortfall; the more significant risks being:
• Investment returns – the funding valuation assumes a certain return on assets, which will be available to fund liabilities. Lower
than assumed returns could require the Company to increase contributions to offset the shortfall.
• Life expectancy – the majority of the Plan’s obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the Plan’s liabilities.
The Plan liabilities are calculated, for financial reporting purposes, using a discount rate 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.
Description of significant events
There were no Fund amendments, curtailments or settlements during 2019 (2018: Nil).
18. EMPLOYEE BENEFITS
Liabilities for employee benefits comprise the following:
20192018
CURRENTNON-
CURRENT
TOTALCURRENTNON-
CURRENT
TOTAL
NOTE$000$000$000$000$000$000
Defined benefit pension plan
18(b)
- 24,907 24,907
- 34,428 34,428
Medical plan
18(b)
104 9,958 10,062
207 7,990 8,197
Wages, salaries, annual leave
and sick leave
6,610 - 6,610 5,737 - 5,737
Employee incentive scheme
- - -
2,905 - 2,905
Long-service leave and
retirement bonus
1,147 6,029 7,176 1,099 5,669 6,768
TOTAL
7,861 40,894 48,755
9,948 48,087 58,035
P

Defined benefit pension plan (scheme closed since 31 December 2002)
The Parent contributes to a defined benefit pension plan (the “Plan”) for eligible employees. The liability recognised in the
Consolidated Balance Sheet in respect of the defined benefit pension plan is the present value of the defined benefit pension
plan obligation at the balance date less the fair value of plan assets.
The defined benefit pension plan obligation is calculated annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit pension plan obligation is determined 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.
P

Medical plan (scheme closed since 1996)
The Parent pays health insurance premiums in respect of 21 former and 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.
P

Wages, salaries, annual leave and sick leave
These liabilities are measured at the amounts expected to be paid when settled.
P

Employee incentive schemes
The Company offers a short term incentive scheme to eligible employees which recognises both individual and
Company performance.
The Group recognises a provision where contractually obliged or where there is past practice that has created a
constructive obligation.
P

Long-service leave and retirement bonus
Long service leave and retirement bonuses are measured based on an actuarial assessment and represent the present value of
the estimated future cash outflows, which are expected as a result of employee services provided up to the balance date.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20194041
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

18. EMPLOYEE BENEFITS (continued)
MEDICAL PLANPENSION PLAN
PRESENT
VALUE OF
OBLIGATION
FAIR VALUE
OF PLAN
ASSETS
TOTALPRESENT
VALUE OF
OBLIGATION
FAIR VALUE
OF PLAN
ASSETS
TOTAL
NOTE$000$000$000$000$000$000
AT 1 JANUARY 2019 EXCLUDING TAXES
(8,197)- (8,197)(106,120)83,054 (23,066)
Current service cost
18(j)- - - (1,902)- (1,902)
Interest (expense)/income
18(j)
(226)- (226)(2,552)1,985 (567)
Remeasurements
– Actual return on plan assets less
interest income
18(k)- - - - 9,893 9,893
– Actuarial losses arising from changes
in financial assumptions
(550)- (550)(2,754)- (2,754)
– Actuarial losses arising from changes
in demographic assumptions
- - - 44 - 44
– Actuarial (losses)/gains arising from
liability experience
(1,375)- (1,375)(748)- (748)
DEFINED BENEFIT ACTUARIAL
GAIN/(LOSS)
18(k)(1,925)- (1,925)(3,458)9,893 6,435
Contributions:
– Employers
- - - - 2,411 2,411
– Plan participants
- - - (453)453 -
Benefits paid
286 - 286 5,735 (5,735)-
Premiums and expenses paid
- - - 427 (427)-
NET LIABILITY EXCLUDING TAXES
31 DECEMBER 2019
(10,062)- (10,062)(108,322)91,634 (16,688)
(d) Fair value of defined benefit pension plan assets
SIGNIFICANT
INPUTS
LEVEL 2
$000
Net current assets/(liabilities)
1,876
Debt instruments
8,540
Investment Funds – Composite Funds
81,218
TOTAL ASSETS
91,634
18. EMPLOYEE BENEFITS (continued)
(b) Reconciliation of the medical plan and pension plan net liabilities
MEDICAL PLANPENSION PLAN
2019201820192018
NOTE$000$000$000$000
Present value of the defined benefit obligation
18(c)
(10,062)
(8,197)
(108,322)
(106,120)
Fair value of plan assets
18(c),18(d)
-
-
91,634
83,054
DEFICIT
(10,062)
(8,197)
(16,688)
(23,066)
Contributions tax
-
-
(8,219)
(11,362)
LIABILITY IN THE BALANCE SHEET
(10,062)
(8,197)
(24,907)
(34,428)
(c) Movements in the net liabilities recognised in the Balance Sheet
MEDICAL PLANPENSION PLAN
PRESENT
VALUE OF
OBLIGATION
FAIR VALUE
OF PLAN
ASSETS
TOTALPRESENT
VALUE OF
OBLIGATION
FAIR VALUE
OF PLAN
ASSETS
TOTAL
NOTE$000$000$000$000$000$000
AT 1 JANUARY 2018 EXCLUDING TAXES
(7,422)- (7,422)(104,436)93,282 (11,154)
Current service cost
18(j)- - - (1,863)- (1,863)
Interest (expense)/income
18(j)(242)- (242)(3,012)2,682 (330)
Remeasurements
– Actual return on plan assets less
interest income
18(k)- - - - (4,607)(4,607)
– Actuarial losses arising from changes
in financial assumptions
(665)- (665)(6,185)- (6,185)
– Actuarial (losses)/gains arising from
liability experience
(61)- (61)543 - 543
DEFINED BENEFIT ACTUARIAL
GAIN/(LOSS)
18(k)(726)- (726)(5,642)(4,607)(10,249)
Contributions:
– Employers
- - - - 529 529
– Plan participants
- - - (482)482 -
Benefits paid
193 - 193 9,043 (9,043)-
Premiums and expenses paid
- - - 271 (271)-
NET LIABILITY EXCLUDING TAXES
31 DECEMBER 2018
(8,197)- (8,197)(106,120)83,054 (23,066)
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20194243
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

18. EMPLOYEE BENEFITS (continued)
The percentage invested in each asset class at the balance date are:
PENSION PLAN
20192018
Australasian Equity
10.3%
10.1%
International Equity
33.3%
31.2%
Fixed Income
33.3%
36.4%
Cash
11.3%
10.5%
Property and Other
11.8%
11.8%
The fair value of plan assets includes no amounts relating to:
• Any of the Group’s own financial instruments;
• Any property occupied by, or other assets used by, the Group.
(e) Principal actuarial assumptions at the balance sheet date
E
The present value of the defined benefit pension plan obligation depends on a number of factors that are determined by an
independent actuary using a number of assumptions, including the expected rate of salary increases, mortality in retirement and
an appropriate discount rate. These assumptions are determined by the Group, in consultation with the independent actuary who
performs an accounting valuation in accordance with NZ IAS 19 ‘Employee Benefits’ at each balance date. Any changes in these
assumptions will impact the carrying amount of pension obligations.
As at 31 December 2019 the following actuarial assumptions were applied:
20192018
MEDICAL PLANPENSION PLANMEDICAL PLANPENSION PLAN
Discount rate
2.1%2.0%
2.8%2.5%
Expected rate of future salary increases
-2.5%
-2.5%
Pension increases
-No provision
-No provision
Mortality in retirementNew Zealand Life Tables 2012-2014 mortality table,
set back by 1 year, together with an age related
future mortality improvement scale.
Health insurance premium
8.0%-
8.0%-
Rate of Fringe Benefit Tax
42.86%-49.25%-
49.25%-
18. EMPLOYEE BENEFITS (continued)
(f) Sensitivity analysis – pension plan
The sensitivity of the defined benefit obligation to changes in the principal assumptions is shown in the graphs below.
(12,004)
(11,760 )
1% DISCOUNT RATE INCREASE ($ 000)1% DISCOUNT RATE DECREASE ($ 000)
14,876
14,574
(2,16 3 )
(2,119 )
1 YEAR DECREASE IN LIFE EXPECTANCY ($ 000)1 YEAR INCREASE IN LIFE EXPECTANCY ($ 000)
2,145
2,102
(2,994)
(2,933)
1% SAL ARY DECREASE ($ 000) 1% SAL ARY INCREASE ($ 000)
3,311
3,244
2019 increase/(decrease) in defined benefit obligation
2018 increase/(decrease) in defined benefit obligation
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis are consistent with those applied during the
comparative reporting period.
(g) Maturity profile of defined benefit obligation
The average term at which the expected future discounted cash flows are due is 13 years (2018: 12 years).
The average undiscounted expected term of all liabilities is 15 years (2018: 16 years).
(h) Funding arrangements
The Actuary determines the Pension Plan’s financial position (funding valuation) every three years in accordance with the Financial
Markets Conduct Act 2013. The last funding valuation was completed as at 31 March 2019, at which time the Plan was fully funded
based on the assumptions used by the Actuary. These assumptions were consistent with the actuarial assumptions presented in note
18(e), except for the discount rate determined based on the expected long term future returns of the plan rather than the risk free rate
of return.
The funding objective adopted at the 31 March 2019 funding valuation is to ensure that the Fund’s assets are not less than the value
of accrued benefits. The Company contributes a fixed amount of $1.5 million (including contributions tax at 33%) and a lump sum
contribution to fund new disability pensions. The next statutory valuation is due no later than 31 March 2022.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20194445
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

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 19: Financial risk management
Note 20: Derivative financial instruments
19. FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks (market, credit and liquidity) in the normal course of the Group’s business.
Risk management is performed by Group Management who evaluate and hedge certain financial risks including currency risk and
interest rate risk under a Treasury Policy that is approved by the Board of Directors.
(a) Market risk
Market risk includes refining margin, electricity pricing, currency and interest rate risk.
Refining margin risk
The refining margin (margin) generated by the Group is a key input to the calculation of the processing fee revenue which comprises
70% (2018: 71%) of the Group’s total operating revenue. Processing fee revenue is set as 70% of the gross refining margin generated,
subject to a fee floor of $136 million (2018: $134 million), and margin cap of USD9.00 per barrel for each customer. This 70/30 split of
the refining margin reflects the fact that Refining NZ’s customers bear the risks and associated costs of crude purchasing, the finance
and currency costs and risks associated with maintaining crude, feedstock and product inventories, shipping and demurrage risks and
guaranteeing a minimum processing fee.
The margin is calculated as the typical market value of all the products produced, minus the typical market value of all feedstock
processed. The typical market value of products is determined by using quoted prices for the products in Singapore plus the typical
freight cost to New Zealand plus product quality premia. The typical value of feedstock is determined by using the market value for
crude oil and other feedstock at the point of purchase, plus the typical cost of freight to New Zealand.
Refining margin risk is the risk of volatility in the typical product and feedstock prices to which the Group is exposed. The Group’s
revenue is likely to be impacted, favourably or unfavourably, during periods of market price volatility. The Group does not hedge this risk.
The downside in the volatility of margin and foreign exchange risk is limited by the processing fee floor, which comes into effect if the
total processing fee for a calendar year does not exceed a minimum value. The fee floor is subject to annual Producers Price Index (PPI)
based escalation.
Electricity
The Group is also exposed to commodity price risk in relation to the purchase of electricity. This exposure exists as a result of the Group
purchasing electricity via the New Zealand Electricity Wholesale Market, which is subject to price volatility caused by both demand/
supply and transmission constraints. The Group uses electricity futures and Contracts for Differences to hedge the electricity price risk.
18. EMPLOYEE BENEFITS (continued)
(i) Expected contributions
MEDICAL PLANPENSION PLAN
20202020
FINANCIAL YEAR ENDING
$000$000
Expected employer contributions (net)
286995
(j) Amounts recognised in the Consolidated Income Statement
MEDICAL PLANPENSION PLAN
2019201820192018
$000$000$000$000
Service cost
-
-
1,902
1,863
Net interest cost
226
242
567
330
Plan expense
226
242
2,469
2,193
Contributions tax
-
-
1,216
1,079
PLAN EXPENSE PLUS TAXES
226
242
3,685
3,272
(k) Amounts recognised in the Statement of Comprehensive Income
20192018
$000$000
Defined benefit actuarial (loss)
(3,457)
(5,642)
Actual return on plan assets less interest income
9,893
(4,607)
Actuarial loss medical scheme
(1,925)
(726)
Total recognised in other comprehensive income
4,511
(10,975)
Contributions tax
3,170
(5,049)
TOTAL RECOGNISED IN OTHER COMPREHENSIVE INCOME WITH CONTRIBUTIONS TAX
7,681
(16,024)
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20194647
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

19. FINANCIAL RISK MANAGEMENT (continued)
Currency risk
The Group is exposed to foreign exchange risk as a result of transactions denominated in currencies other than the Group’s functional
currency. The primary currencies giving rise to the currency risk are US dollar, Singaporean dollar, Euro and Australian dollar. Currency
risk arises from the processing fee (being calculated in US dollars and billed in New Zealand dollars) and future commercial transactions
(purchase of property, plant and equipment, goods or services).
The Group may enter into hedging agreements with Board approval and in accordance with the Group’s Treasury Policy which requires
all purchases of all capital items of value exceeding certain thresholds to be hedged with either forward exchange contracts or
currency options.
Interest rate risk
The Group’s interest rate risk arises from fixed term borrowings at floating interest rates. The Group uses interest rate swaps to manage
the interest rate risk. The swaps are floating-to-fixed interest rate swaps under which the Group agrees with other parties to exchange
the difference between fixed contract rates and floating interest rates calculated, on a quarterly basis, with reference to the agreed
notional amounts. Refer to note 20 for further information.
Sensitivity analysis
The graphs below summarise the potential impact of each type of market risk exposures on the Group’s profit before tax and equity
(assuming all other factors remain unchanged), except for electricity risk which was effectively hedged in 2018 and 2019.
• Price risk – an increase and decrease of refining margin by USD1.00 per barrel.
(45,308)
(41,005)
(45,308)
(41,005)
USD1/ BBL DECREASE ($ 000)USD1/ BBL INCREASE ($ 000)
45,308
41,005
45,308
41,005
2019 – Profit or loss before tax
2018 – Profit or loss before tax
2019 – Equity (pre-tax)
2018 – Equity (pre-tax)
• Currency risk – the sensitivity analysis is presented based on the impact of the New Zealand dollar weakening or strengthening
against foreign currencies, such as US dollar, Singaporean dollar, Euro and Australian dollar. A 10% movement in foreign currencies
is considered as reasonably possible given the volatility in foreign exchange rates in the prior years.
(21,939)
(23,473)
(22,472)
(23,522)
NZD 10 % STRONGER ($ 000)NZD 10 % WEAKER ($ 000)
26,848
28,669
2 7, 4 9 9
28,726
2019 – Profit or loss before tax
2018 – Profit or loss before tax
2019 – Equity (pre-tax)
2018 – Equity (pre-tax)
19. FINANCIAL RISK MANAGEMENT (continued)
• Interest rate risk – change in interest rates by 25 basis points (bps) is considered by the Group reasonably possible over the
short-term.
(179
(86
(94)
(543)
25 BPS DECREASE ($ 000)25 BPS INCREASE ($ 000)
(179)
(86)
93)
540)
2019 – Profit or loss before tax
2018 – Profit or loss before tax
2019 – Equity (pre-tax)
2018 – Equity (pre-tax)
(b) Credit risk
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions,
as well as credit exposures to customers from outstanding receivables and committed transactions.
For banks only parties with a minimum long-term credit rating of A+ or A1 are accepted. Gross limits are set for financial institutions
and the usage of these limits is determined by assigning product weightings to the principal amount of the transaction.
Transactions are spread across a number of counterparties to avoid concentrations of credit exposure. No credit limits were exceeded
during the reporting period and Management does not expect any losses from non-performance by counterparties.
The Group is exposed to credit risk if counterparties fail to make payments as they fall due in respect of payment of trade receivables
as invoices fall due 7-14 days for the Parent and 30 days for its subsidiary after being raised. The receivables from the oil companies
(as disclosed in the related party note 3) present a concentration of credit risk, however, Management has assessed the credit quality
of these customers as being high. Based on the analysis of the historical payments of the Group’s customers and with reference to
their credit rating and short payment terms, the Group assessed the expected credit losses to be immaterial. No collateral is held over
trade receivables.
The maximum exposure to credit risk at balance date is the carrying amount of the financial assets.
Overdue trade receivable balances at 31 December 2019, which were subsequently paid in January 2020, totalled $0.343 million
(2018: $1.206 million). Management consider that these balances are not impaired.
(c) Liquidity risk
The Group monitors rolling forecasts of liquidity requirements to ensure it has sufficient cash to meet operational needs while
maintaining sufficient headroom on the Group’s undrawn borrowing facilities (note 8).
Surplus cash held by the Group over and above the balance required for working capital management is invested in interest bearing
current accounts, term deposits, and money market deposits, choosing instruments with appropriate maturities or sufficient liquidity
to provide sufficient headroom as determined by the above-mentioned forecasts.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20194849
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

19. FINANCIAL RISK MANAGEMENT (continued)
Derivative financial liabilities
The table below details the liquidity risk arising from derivative liabilities held by the Group at balance date. Derivative financial
liabilities are split into the Gross settled derivatives which include foreign exchange forward contracts with the inflow being based
on the foreign currency converted at the closing spot rate, and the net settled derivatives which include interest rate swaps with the
floating rate being based on the most recent rate set.
CONTRACTUAL CASH FLOWS
CARRYING
AMOUNT
LESS THAN
6 MONTHS
BETWEEN
6 MONTHS
- 1 YEAR
BETWEEN
1-2 YEARS
BETWEEN
2-5 YEARS
OVER
5 YEARS
TOTAL
CASH
FLOWS
GROUP 2019
$000$000$000$000$000$000$000
DERIVATIVE FINANCIAL
INSTRUMENTS
Net settled derivatives
(4,302)524 (74)(2,001)(2,739)- (4,290)
Gross settled derivatives
Outflows
- (87)(1,193)(4,757)- - (6,037)
Inflows
- 89 1,179 4,706 - - 5,974
Total gross settled derivatives
(86)2 (14)(51)- - (63)
TOTAL DERIVATIVE FINANCIAL
LIABILITIES
(4,388)526 (88)(2,052)(2,739)- (4,353)
CONTRACTUAL CASH FLOWS
CARRYING
AMOUNT
LESS THAN
6 MONTHS
BETWEEN
6 MONTHS
- 1 YEAR
BETWEEN
1-2 YEARS
BETWEEN
2-5 YEARS
OVER
5 YEARS
TOTAL
CASH
FLOWS
GROUP 2018
$000$000$000$000$000$000$000
DERIVATIVE FINANCIAL
INSTRUMENTS
Net settled derivatives
(627)2,457 (373)(2,824)- - (740)
Gross settled derivatives
Outflows- (697)(576)(191)(71)- (1,535)
Inflows
- 700 581 193 71 - 1,545
Total gross settled derivatives
18 3 5 2 - - 10
TOTAL DERIVATIVE
FINANCIAL LIABILITIES
(609)2,460 (368)(2,822)- - (730)
19. FINANCIAL RISK MANAGEMENT (continued)
Non-derivative financial liabilities
The following table sets out the maturity analysis for non-derivative financial liabilities based on the contractual terms as at
balance date. The amounts presented are the contractual undiscounted cash flows and are based on the expiry of the bank facility
or maturity of the subordinated notes.
The liquidity analysis set out below discloses cash outflows resulting from the financial liabilities only, and does not consider expected
net cash inflows from financial assets (including trade receivables) or undrawn debt facilities which provide liquidity support to the
Group. Contractual cash flows associated with bank borrowings include interest for the period until the debt rollover date (typically
within 6 months from the balance date) and subordinated notes include interest in the period until their expiry on 1 March 2034.
CONTRACTUAL CASH FLOWS
CARRYING
AMOUNT
LESS THAN
6 MONTHS
BETWEEN
6 MONTHS
- 1 YEAR
BETWEEN
1-2 YEARS
BETWEEN
2-5 YEARS
OVER
5 YEARS
TOTAL
CASH
FLOWS
GROUP 2019
$000$000$000$000$000$000$000
NON-DERIVATIVE FINANCIAL
LIABILITIES
Trade and other payables
(31,967)(31,967)- - - - (31,967)
Lease liabilities
(3,454)(252)(290)(532)(1,551)(3,499)(6,124)
Bank borrowings
(172,100)(1,681)- (98,100)(74,000)- (173,781)
Subordinated notes
(74,516)(1,913)(1,913)(3,825)(11,475)(111,337)(130,463)
TOTAL NON-DERIVATIVE
FINANCIAL LIABILITIES
(282,037)(35,813)(2,203)(102,457)(87,026)(114,836)(342,335)
CONTRACTUAL CASH FLOWS
CARRYING
AMOUNT
LESS THAN
6 MONTHS
BETWEEN
6 MONTHS
- 1 YEAR
BETWEEN
1-2 YEARS
BETWEEN
2-5 YEARS
OVER
5 YEARS
TOTAL
CASH
FLOWS
GROUP 2018
$000$000$000$000$000$000$000
NON-DERIVATIVE FINANCIAL
LIABILITIES
Trade and other payables
(29,677)(29,677)- - - - (29,677)
Bank borrowings
(185,300)(2,216)- (100,000)(85,300)- (187,516)
Subordinated notes
(73,301)(807)(1,913)(3,825)(11,475)(115,162)(133,182)
TOTAL NON-DERIVATIVE
FINANCIAL LIABILITIES
(288,278)(32,700)(1,913)(103,825)(96,775)(115,162)(350,375)
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20195051
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

20. DERIVATIVE FINANCIAL INSTRUMENTS (continued)
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 foreign exchange contracts.
Electricity futures are traded on an active market, the Australian Securities Exchange (ASX). The Group uses ASX mark-to-market quotes
to determine the fair value of the futures contracts and contracts for differences.

Interest rate swaps and forward foreign exchange contracts are not traded in an active market and their fair value is determined by
using accepted 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 date, with the
resulting value discounted back to present value.
20192018
ASSETSLIABILITIESASSETSLIABILITIES
$000$000$000$000
Cash flow hedges:
– forward foreign exchange contracts
- (15)
12 -
– electricity futures and contracts for differences
4,421 (416)
6,237 -
– interest rate swaps
- (3,566)
- (1,300)
TOTAL CURRENT PORTION
4,421 (3,997)
6,249 (1,300)
Cash flow hedges:
– forward foreign exchange contracts
- (71)
6 -
– electricity futures and contracts for differences
205 (4,946)
- -
– interest rate swaps
--
-(5,564)
TOTAL NON-CURRENT PORTION
205 (5,017)
6 (5,564)
20. DERIVATIVE FINANCIAL INSTRUMENTS
P
At initial recognition, the derivative financial instruments are measured at fair value on the date a derivative contract is entered
into and are subsequently re-measured at their fair value. The fair value of derivative financial instruments approximates their
carrying value.
Derivatives are only used for economic hedging purposes and not as speculative investments. The Group designates certain
derivatives as hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction
(cash flow hedge).
At inception each transaction is documented, detailing the economic relationship and the hedge ratio between hedging
instruments and hedged items, the risk management objective and strategy, and the assessment, initially and on an ongoing
basis, of whether the derivatives used in the hedging transaction are highly effective.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in equity in the cash flow hedge reserve. Hedge effectiveness is determined at inception of the hedge relationship,
and through periodic effectiveness assessments to ensure that an economic relationship exists between the hedged item
and hedging instrument. The gain or loss relating to the ineffective portion is recognised immediately in other operating

gains/losses in the Income Statement.
The net movement in the cash flow hedge reserve comprises:
20192018
$000$000
Foreign exchange hedges transferred to property, plant and equipment
(13)
(457)
Foreign exchange contracts entered into during the year
(90)
18
Movement in value of foreign exchange contracts held throughout the year
-
(1)
Interest rate swaps maturing in the year
1,301
137
Movement in value of interest rate swaps held throughout the year
1,998
2,619
Electricity futures and contracts for differences entered into during the year
(780)
3,740
Electricity futures and contracts for differences settled in the year
(5,510)
(735)
Movement in value of electricity futures held throughout the year
-
2,535
Gross movement in cash flow hedge reserve (3,094)
7,856
Deferred tax866
(2,200)
NET MOVEMENT IN CASH FLOW HEDGE RESERVE
(2,228)
5,656
The full fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is
more than 12 months.
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).
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20195253
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

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 21: Employee share-based payments
Note 22: Contingent liabilities
Note 23: Auditor’s fees
21. EMPLOYEE SHARE-BASED PAYMENTS
P
Share-based payments with employees, classified as equity-settled transactions, are recognised as an expense with a
corresponding entry to employee share entitlement reserve, and measured at the fair value of the equity instruments granted at
grant date. The amount recognised as an expense is adjusted to reflect the number of shares that will ultimately vest over the
vesting period. The shares purchased by the Parent on market are accounted for as Treasury Stock.
The Company operates an Employee Share Purchase Scheme (“scheme”) which qualifies as an “Exempt ESS” under section CW26C
of the Income Tax Act 2007. Eligible employees are offered $1,000 worth of shares, multiplied by the Business Performance Factor
(BPF) during the year of award and increased by an employee contribution of $1. The shares are purchased on-market and held by CRS
Nominees Limited, during a three year vesting period. As at 31 December 2019 there have been 92,910 shares vested to the Company
employees (31 December 2018: Nil).
The details of the scheme, including expenses arising from the scheme (as presented in Employee Share Scheme Entitlement Reserve),
are as follows:
PERFORMANCE
YEAR
GRANT
DATE
VESTING
DATE
NUMBER
OF ELIGIBLE
EMPLOYEES
COMPANY
CONTRIBUTION
PER EMPLOYEE
EXPENSES ARISING
FROM THE SCHEME
$
2015
$000
2016
$000
2017
$000
2018
$000
2019
$000
TOTAL
$000
20157 April 201621 April 2019299 1,025 7562 62 85 8292
201629 March 20174 May 2020297 1,250 -91 62 80 100333
201726 March 20188 May 2021302 1,050 -- 77 70 68215
2018 26 March 20196 May 2022314 900 -- - 68 65133
2019 *
----------


75153201303241973
Shares vested in 2019
(292)
SHARE SCHEME RESERVE AS AT 31 DECEMBER 2019
681
* A share offer in relation to the performance year 2019 has not been made by the Company to its employees as at 31 December 2019.

20. DERIVATIVE FINANCIAL INSTRUMENTS (continued)
The effects of the derivative financial instruments on the Group’s financial position and performance are as follows:
FOREIGN EXCHANGE FORWARD CONTRACTSINTEREST
RATE SWAPS
ELECTRICITY
FUTURES AND
CONTRACTS FOR
DIFFERENCES
AUDEURSGDUSD
31 DECEMBER 2019
Carrying amount – net asset/(liability) ($000)
- - 4 (90)(3,565)(736)
Notional amount (equivalent of NZ$000)
- - 202 5,836 100,000 85,060
Maturity date
- - 2020-20212020-202120202020-2022
Hedge ratio
- - 1:11:11:11:1
Change in fair value of hedging instrument
($000)
3 (12)(4)(90)3,299 (6,973)

Weighted average hedged rate
AU$/NZ$
-
EUR/NZ$
-
SG$/NZ$
0.9252
US$/NZ$
0.66555.65%$113.4/MWh
FOREIGN EXCHANGE FORWARD CONTRACTSINTEREST
RATE SWAPS
ELECTRICITY
FUTURES AND
CONTRACTS FOR
DIFFERENCES
AUDEURSGDUSD
31 DECEMBER 2018
Carrying amount – net asset/(liability) ($000)(3)12 8 - (6,864)6,237
Notional amount (equivalent of NZ$000)139 759 375 - 150,000 16,459
Maturity date20192019-20202019-2021-2019-20202019
Hedge ratio1:11:11:1-1:11:1
Change in fair value of hedging instrument
($000)
(23)(148)(16)(254)2,757 5,569

Weighted average hedged rate
AU$/NZ$
0.9356
EUR/NZ$
0.5892
SG$/NZ$
0.9290
US$/NZ$
-5.73%$79.2/MWh
For all hedges the quantity of the hedging instrument matched the quantity of the hedged items therefore the hedge ratios were 1:1.
The forward exchange contracts are hedging committed or highly probable forecast purchases of property, plant and equipment
denominated in foreign currency expected to occur at various dates with maturities between 2020 and 2021. At balance date all forward
exchange contracts had been designated as hedges and there was no ineffectiveness to be recorded from these cash flow hedges.
Interest rate swaps are used to hedge highly probable cash flows associated with interest costs on borrowings and are used to convert
floating rate positions into fixed rate positions. As all critical terms matched during the year, the economic relationship was 100%
effective, and there was no ineffectiveness recorded from these hedges.
Electricity futures and contracts for differences are used to hedge highly probable cash flows associated with purchases of electricity at
spot market and an ineffective portion of the hedge may occur due to a volume mismatch and location factor. At balance date the hedge
ineffectiveness from these cash flow hedges amounted to $73 thousand (2018: $29 thousand).
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20195455
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

21. EMPLOYEE SHARE-BASED PAYMENTS (continued)
Set out below are summaries of shares acquired by the Company during the financial year, included in Treasury Stock until vesting date:
20192018
NUMBER
OF SHARES
AVERAGE
PURCHASE
PRICE
VALUE OF
SHARES
ACQUIRED
NUMBER
OF SHARES
AVERAGE
PURCHASE
PRICE
VALUE OF
SHARES
ACQUIRED
000’s$ PER SHARE$000000’s$ PER SHARE$000
AT 1 JANUARY
375.82.58969
252.82.68678
Shares acquired
134.72.10283123.02.37291
Shares vested
(92.9)3.14(292)---
AT 31 DECEMBER
417.62.30960
375.82.58969
22. CONTINGENT LIABILITIES
The Group has no contingent liabilities at 31 December 2019 (2018: nil).
23. AUDITOR’S FEES
GROUPGROUP
20192018
$000$000
Auditor’s fees comprises:
Audit of financial statements – EY
215
-
Audit of financial statements – PwC
-
155
Reimbursement of travel and accommodation – EY
15
-
Reimbursement of travel and accommodation – PwC
-
14
Other services:
Consulting fee – strategic review – Strategy& (PwC)
-
681
AGM scrutineering – PwC
-
6
Executive development course fees – EY
49
-
Remuneration market data report - EY
8
-
Advisory fees for remuneration benchmarking – PwC
-
16
AUDITOR’S FEES
287
872
23. AUDITOR’S FEES (continued)
Auditor change
In December 2019, the Company aligned its audit independence policy and its external audit services with the guidance given by the
Financial Markets Authority (FMA) Handbook ‘Audit quality – a director’s guide’ issued in November 2019, covering auditor selection,
auditor independence and the audit process itself.
In accordance with the Company’s revised Auditor Independence policy statement, the Board carried out a market assessment of
external audit services – which included consideration of the level of non-assurance services provided and the length of tenure of the
current auditor – and appointed Ernst & Young (EY) to provide external audit services to the Company. Consequently, the Board and
PwC reached a mutual agreement that PwC resign from their audit role.
EY will stand for reappointment by all shareholders at Refining NZ’s Annual Meeting to be held on 29 April 2020.
Other services
• Consulting Fee – strategic review
In 2018 the Board engaged Strategy&, part of the PwC global network, to undertake a one-off advisory service, following a
comprehensive tender evaluation process. The services were provided by a consulting team based out of Australia, independent
of the New Zealand audit team, and the Board and management retained full responsibilities for all decisions made both during
and following the review.
• Executive Development Course Fees and Remuneration market data report
The fees were paid to EY prior to their appointment as auditors of the Company and relate to course fees for the EY Darden
Executive Development Program and a remuneration market data report.
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20195657
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2019

Independent Auditor’s Report
TO THE SHAREHOLDERS OF NEW ZEALAND REFINING COMPANY LIMITED GROUP
PROCESSING FEE REVENUE
Why significantHow our audit addressed the key audit matter
The most significant revenue stream of the Group,
and a key determinant of its profitability, is processing
fee revenue. In 2019 this amounted to $242m of the
total Group revenue of $348m.
Processing fees are material related party transactions
with the Group’s shareholding oil companies, who are
also its customers.
The processing fee calculation is complex and includes
many variables. The calculation is based on an agreed
formula defined in the processing agreements with each
of the oil companies. Note 19 (a) discloses a summary of
the method of calculation and the key inputs into the
calculation of the processing fees.
Notes 2 and 3 of the consolidated financial statements
explain the accounting policies used and an analysis
of processing fee revenue.
In obtaining sufficient appropriate audit evidence:
• We evaluated the Group’s process for calculating and
recording processing fee revenue. We understood and
verified the design of key controls including
management’s review and authorisation of monthly
processing fee calculations.
• We agreed the processing fee calculation methodology
used to recognise revenue to the method and pricing
prescribed in the processing fee agreements and on a
sample basis reperformed the calculation of the
processing fee for each of the customers.
• We agreed key inputs used in the calculation, on a
sample basis, to source documents.
• We confirmed the total annual processing fee with
each customer.
• We tested payments received from the oil companies
during the year and agreed post year-end cash receipts
from each of the customers to the outstanding
receivables at year end.
• We reviewed the Group’s accounting policy and related
disclosures with regard to the disclosure requirements
of IFRS 15, ‘Revenue from Contracts with Customers’
and IAS 24 ‘Related Parties’.
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of The New Zealand Refining Company (“the Company”) Group and its
subsidiaries (together “the Group”) on pages 01 to 57 , which comprise the consolidated balance sheet of the Group
as at 31 December 2019, and the consolidated income statement, consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended of the
Group, and the notes to the consolidated financial statements including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 01 to 57 present fairly, in all material respects, the
consolidated financial position of the Group as at 31 December 2019 and its consolidated financial performance and cash
flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards
and International Financial Reporting Standards.
This report is made solely to the company’s shareholders as a body. Our audit has been undertaken so that we might state
to the company’s shareholders those matters we are required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
company and the company’s shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of
our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 (revised) Code of Ethics for
Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provided remuneration benchmarking and executive development course services to the Group. Partners
and employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current year. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion
on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements
section of the audit report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial statements.
The results of our audit procedures, including the procedures performed to address the matters below, provide the basis
for our audit opinion on the accompanying consolidated financial statements.
Independent Auditor’s Report
TO THE SHAREHOLDERS OF THE NEW ZEALAND REFINING COMPANY LIMITED
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 20195859

Independent Auditor’s Report
TO THE SHAREHOLDERS OF NEW ZEALAND REFINING COMPANY LIMITED GROUP
Information other than the financial statements and auditor’s report
The directors of the company are responsible for the Annual Report, which includes information other than the consolidated
financial statements and auditor’s report which is expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained during the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and, if uncorrected, to take appropriate action to bring the
matter to the attention of users for whom our auditor’s report was prepared.
Directors’ responsibilities for the financial statements
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial
statements in accordance with New Zealand equivalents to International Financial Reporting Standards and International
Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing on behalf of the entity the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
International Standards on Auditing (New Zealand) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External
Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurancepractitioners/auditors-responsibilities/
audit-report-1/. This description forms part of our auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is Simon O’Connor.
Chartered Accountants
Auckland
26 February 2020
REFININGNZ.COM
REFINING NZ CONSOLIDATED FINANCIAL STATEMENTS 201960

---

REFINING NZ
2019 RESULTS PRESENTATION
27 February 2020
2019 ANNUAL RESULTS
PRESENTATION

REFINING NZ
2019 RESULTS 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 officers, 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,27 February 2020.

REFINING NZ
2019 RESULTS PRESENTATION
AGENDA
PERFORMANCE
LOOKING AHEAD

REFINING NZ
2019 RESULTS PRESENTATION
2019 Highlights:
–Outstanding health, safety and environmental
performance
–Excellent operational performance
–highest annual crude and condensate intake
–highest annual refined product make & customer
product offtakes
–Costs well managed despite higher electricity and
gas prices
–Weaker market conditions resulted in lower refining
margins and a fee floor processing income for the
last two months of 2019
AGENDA
PERFORMANCE
LOOKING AHEAD

REFINING NZ
2019 RESULTS PRESENTATION
5
HIGHLIGHTS
1 Per 200,000 hours, rolling 12-month
2For a full definition please refer to Glossary in Appendix I
See our Full 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.
FY 18FY19
PersonalTRCF
[1,2]
0.760.27
Process
Tier 1 (>US$25k)
[2]
20
Tier 2 (>US$2.5k)
[2]
30
Releases outside consent51
Throughput
Mbbl
40.442.7
RAP Throughput
Mbbl
21.020.8
Operational availability
%
90.799.7
Singapore complex margin
[4]
US$/bbl
2.701.02
EBITDA
[2]
NZ$M
153118
NPAT
NZ$M
304.2
Exchange rate
US$/NZ$
0.690.66
Gross Refining Margin
USD 5.34
PER
BARREL
6.31 per barrel in FY18
LTIF
[1,2]
0.13
0.48 in FY18
$
Free Cash Flow
[3]
NZD39.4
NZD(58)M in FY18
M
EBITDA
NZD118
NZD153m in FY18
M
Excellent operational and safety performance

REFINING NZ
2019 RESULTS PRESENTATION
6
The above chart excludes any movementin pass through costs such as natural gas, sulphur and carbon. See our Financial Statements for further detail, available at http://www.refiningnz.com/investor-centre.aspx
EBITDA
EBITDA
Refining $77m
Distribution $37m
Laboratory $4m
$118m
Delivered in line with Profit Matrix

REFINING NZ
2019 RESULTS PRESENTATION
7
FACTORS IMPACTING REFINING
MARGIN
Market disruption and volatility
Weakerpetrol and diesel margins:
-Capacity additions
-Increased Chinese exports
IMO 2020 MARPOL impacts
-Prices moved contrary to market expectations
US sanctionson China
-Crude freight rates spiked
A slowing global economy

REFINING NZ
2019 RESULTS PRESENTATION
8
REFINERY ACHIEVED STRONG UPLIFT
OVER LOW SINGAPORE MARGIN
Driven by optimised product make and strong operational
performance
* 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.
US$/BARREL
20182019Delta
Freight1.931.80(0.13)
Product quality0.990.75(0.24)
Plant availability(1.02)(0.13)0.89
Crude cost and yield1.711.900.19
Uplift3.614.320.71
Singapore Complex
Margin
2.701.02(1.68)

REFINING NZ
2019 RESULTS PRESENTATION
9
“...a timely reminder of how
important this fuel supply
infrastructure is for Auckland
and New Zealand”
GOVERNMENT INQUIRIES
Findings highlight critical role in fuels supply chain
Auckland Fuel Supply Disruption
-The Refinery to Auckland Pipeline was operated
properly
-Refinery invests in new infrastructure ahead of
demand
Retail Fuel Market Study
-Recognised the integrated nature of the refinery/
pipeline system in supporting the New Zealand
supply chain

REFINING NZ
2019 RESULTS PRESENTATION
10
CONTRIBUTING TO A LOW EMISSIONS
ECONOMY
Strong record of emissions reduction
-TeMahi Hou the largest carbon
reduction by a single project in NZ*
-Equivalent to taking 60,000 Corollas
off the road**
-Pursuingfurther energy saving
initiatives
-Energyconservation partnership with
EECA
-MarangaRa has potential to remove
18,000 tonnes of CO
2
~$750m
invested
2005-2015
~20%
reduction in
carbon intensity
since 2008
>35,000
tonnes p.a.
sulphur removed
from fuels
since 2005
CO
2
intensity
improvement
* Source: EITE report, May 2019
**Using NZTA methodology

REFINING NZ
2019 RESULTS PRESENTATION
FGE forecasts:
–Coronavirus to impact demand and supply in 2020
–Margins to recover based on
–High sulphur fuel oil cracks
–Crude freight rates
–Asian demand growth to outstrip refining capacity
additions from 2021
RNZ ready to benefit from expected margin recovery
PERFORMANCE
LOOKING AHEAD

REFINING NZ
2019 RESULTS PRESENTATION
12
ASIA CAPACITY AND DEMAND GROWTH
Forecasts point to high refinery utilisation (caveat: Chinese
exports)
Source:
As at 10 February 2020. FGE is an independent global energy consultancy that provides
research, analysis and advisory services on the up-and downstream oil and gas markets.
2020: margin pressure impacts
demand growth
-Chinaexports
-New refineries operational early: China,
Brunei
-Outbreak of coronavirus
2021-2022:Expected rebound in
demand growth
201220142016201820202022202420262028
20132015201720192021202320252027
kb/dActualForecast
*Refining projects are sometimes delayed. FGE’s methodology adjusts for possible delays in refining
projects to provide a more realistic assessment of the impact of future refining additions.

REFINING NZ
2019 RESULTS PRESENTATION
13
SINGAPORE PRODUCT CRACKS
OUTLOOK
Expected to support our GRM
FGEOUTLOOK:
-Petrol expected to improve
-Diesel expected to remain supported
-High sulphur fuel oil expected to recover quickly
with increased scrubbers on ships
-Recovery since December: -27 USD/bblto -10
today
Coronavirus expected to increasemarket
volatility
Source:
As at 10 February 2020. 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
2019 RESULTS PRESENTATION
14
RESPONDING TO CYCLICAL
HEADWINDS
Refining NZ taking action
Safety-critical maintenance progressing to
plan
Significantreduction in cash costs:
-Capital programmes
-Operatingcosts
Broadeningcrude slate to accept cheaper
crudes
Optimising refinery yields & Turnaround
cycles to lift GRM
Secured 3-year gas contract

REFINING NZ
2019 RESULTS PRESENTATION
15
OPERATING COSTS UNDER
REVIEW
A sustainable cost base is expected going forward
Non-energy costs undercontrol
Long term trend forecast to be
reversed
2019 one offs have rolled off
Solar farm expected to partially
mitigate the longer term energy price
risk once online
Pass-through costs include natural gas, sulphur and carbon

REFINING NZ
2019 RESULTS PRESENTATION
16
2020
•Crude Distillation Unit (CDU1)
•Hydrocracker Unit Top Bed Skim
•CCR Platformer
•Gasoil Hydrodesulphuriser(HDS3)
2021*
•Hydrocracker unit
•Crude Distillation Unit (CDU2)
2022
•Hydrocracker Unit Top Bed Skim**
TURNAROUND LOOKAHEAD
HDS3
CCR
CDU1
CDU2
Hydrocracker
** No longer required
Optimising planned maintenance
* Timing of Turnaround under review

REFINING NZ
2019 RESULTS PRESENTATION
17
LONG TERM SUSTAIN CAPITAL
FUNDING PLAN
Optimisation continues
Overall spend driven by Turnaroundcycles
FirstCCR Platformer inspection and
catalyst replacement in 2020
2020 forecast down from previous guidance
of $99m to $70m
Forecast 10-year average $70m, still expect
to maintain a long-term average of $65m
Reviewof phasing supported by long-term
asset management plan
Capex minimised in 2020 without
compromising safety
The above chart excludes growth projects such as Dredging and Maranga Ra, where the investment decision will be economically
justified, with alternative financing explored.

REFINING NZ
2019 RESULTS PRESENTATION
18
REFINERY-AUCKLAND PIPELINE
Optimising key infrastructure for NZ’s biggest region
Working to further increase pipeline capacity
RAP provides >90% of Auckland’s fuel (100%
of jet fuel)
Safest, most environmentally-friendly,cost-
effective distribution method
Refinedfuels expected to bepart of NZ’s
energy mix for decades
Distribution option for lower carbon fuels

REFINING NZ
2019 RESULTS PRESENTATION
19
SECURING SUPPLY
Ready to benefit from expected market recovery
Continue to deliver safely, on time and in specification
Minimise cash costs in response to market challenges
Maximise revenue by broadening crude slate, further
optimising refinery yields & optimising Turnaround cycles
Planning for successful Turnarounds (March & May) –
safely, quality, time and cost
Submit Refinery resource consentsapplication
Looking at all tactical & strategic options to stay core to
NZ’s fuel supply

REFINING NZ
2019 RESULTS PRESENTATION
20
FUNDING POSITION
Debt structure extended
Facilities renewal in 2019:
-Senior debt tenor extended from 1 to 3 years
-Overall debt tenor 7+ years (including subordinated notes)
Undrawn facilities of $103m
$100mof interest rate swaps mature in December 2020
Lenders’ debt to debt and shareholder funds: 19%
Debt to EBITDA:9.1x

REFINING NZ
2019 RESULTS PRESENTATION
21
2020 PROFIT MATRIX

REFINING NZ
2019 RESULTS PRESENTATION
22
RENEWED LEADERSHIP
Andrew Brewer, Chief Operating Officer
-Refinery leadership
-Responsible for safe execution and maximising
cash generation from refining operations
-Extensive experience in refining leadership
roles with Caltex Australia and Chevron Canada
-On seat March 2020
Naomi James, Chief Executive Officer
-Overall business leadership
-Develop and execute strategy to maximise
shareholder value
-Formerly Executive Vice President, Santos Ltd,
responsible for midstream infrastructure assets
including oil and gas processing facilities
-On seat April 2020

REFINING NZ
2019 RESULTS PRESENTATION
23
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 anyone-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
2019 RESULTS PRESENTATION
27 February 2020
2019 ANNUAL RESULTS
PRESENTATION