Refining NZ announces non-cash impairment

NZX announcement


4 August 2020

Refining NZ announces non-cash impairment
Refining NZ today announced that it expects to recognise a non-cash impairment charge in the
order of $220 million before tax ($158 million after tax) in the 2020 half-year results.
The impairment charge is primarily due to revised refining margin assumptions, reflecting the
excess refining capacity in the Asia-Pacific region and the effects of the COVID-19 pandemic on
transport fuel demand, particularly jet demand. Refining NZ sets its long-term refining margin
assumptions based on independent energy analyst forecasts.
The company remains comfortably within the 45% senior debt gearing covenant under its
Facility Agreements at 27% following the impairment, which will also not impact on interest
cover ratios that the company continues to meet in the current low margin fee floor
environment.
The impairment charge is a non-cash item and is subject to finalisation and Board approval of
the half-year financial statements.
Refining NZ will release its 2020 half-year results on 17 August 2020.

Ends.
For further information:
Ellie Martel
Government and External Affairs Manager
Ellie.Martel@refiningnz.com
+64 (0)20 4174 7226