Operational Report for March/April 2021

NZX Announcement
24 May 2021
Operational Update for March/April 2021








COMMENTARY
Refining NZ’s excellent personal health and safety performance continued with no recordable injuries. The
Company reported a Tier 1 incident related to an LPG leak on a line. No one was hurt during the incident and
the leak was safely isolated and repaired.
The four-week maintenance turnaround for the CCR Platformer, crude distillation unit and associated plant was
safely completed in March, to schedule and below budget. The turnaround scope included the first statutory
inspection of the CCR platforming unit since it was commissioned in 2015. Good weather for the duration of the
shutdown coupled with very little emergent work from equipment inspections resulted in the turnaround being
delivered below budget.
RAP throughputs at 2.4 Mbbls, were higher than the same period last year and c.70% compared to the same
period in 2019, due to the lower jet fuel demand at Auckland International Airport. We have seen a slight
recovery in jet volumes since the Australia/New Zealand travel bubble was opened in mid-April, but volumes
still remain low at c.40% of pre-COVID levels. Combined petrol and diesel RAP throughput for March/April was
similar to the comparable period in 2019.
The March/April GRM was US$1.50/bbl, generating processing fee revenue of NZ$5.3 million, prior to Fee Floor
top ups of NZ$18.2 million. Singapore Dubai complex margins for the March/April period averaged US$-1.99/bbl
impacted negatively by demand destruction due to COVID resurgence, first in Europe and then in India and other
Asia-Pacific countries. Asian refinery maintenance in the period did not lend the expected support to margins.
Refining NZ’s GRM uplift over the Singapore margin was US$3.50/bbl.
In addition, the Company earned NZ$5 million in terminal fees from the import of refined products to Marsden
Point during the turnaround.
HIGHLIGHTS
• Excellent personal health and safety performance continued with no recordable injuries.
• The four week maintenance turnaround, which included the first statutory inspection of the CCR
Platformer unit, was completed safely, to schedule and below budget.
• RAP volumes were similar to January/February, with a slight recovery in jet volumes since the
Australia/New Zealand travel bubble was opened in mid-April.

• Processing Fee revenue was NZ $23.5 million, including Fee Floor payments of $18.2 million reflecting
the impact of low margins and the turnaround.
• Simplified refinery continued cash neutral operations at the Fee Floor. April’s net debt closed at $234.6
million.

Page 2 of 6

April’s net debt closed lower than expected at NZ$234.6 million
1
reflecting the savings on turnaround capex.
The Company remains on track to deliver cash neutral operations across the full year.
Import terminal negotiations are continuing with customers.



Authorised by:
Chris Bougen
General Counsel and Company Secretary

For further information:
Laura Malcolm
Communication Advisor
communications@refiningnz.com

+64 (0)21 0236 3297



1
Cash neutral excludes Strategic Review restructuring and implementation costs

Page 3 of 6
OPERATIONAL DATA




Appendix I 2021
Mar/AprMar/AprFYFY
2021202020212020
Health, Safety & Environment
LTI
#
0000
LTIF
#/200,000hrs
--- -
TRC
#
0000
TRCF
#/200,000hrs
--- -
Tier I Process Safety Events
#
1020
Tier II Process Safety Events
#
0000
Releases outside of consent
#
0005
Refining
Brent Crude Oil Price
US$/bbl
65.225.261.841.7
Exchange Rate
US$/NZ$
0.710.600.720.65
Operational availability
%
83.991.688.598.2
Unplanned process downtime
%
0.016.30.023.2
Refining throughput
Mbbl
3.454.667.8829.88
Gross Refining Margin
US$/bbl
1.500.672.611.63
Gross Refining Margin
US$M
23.920.447.3131.6
(including Fee Floor/Margin Cap)
Processing Fee (including Fee Floor/Margin Cap)
US$M
16.814.333.192.1
Processing fee (including Fee Floor/Margin Cap)
NZ$M
23.523.746.1141.6
Distribution
RAP throughput
Mbbl
2.42.04.614.7
Note s :
1) The information provided in this announcement excludes Revenue from other activities.
2) The Processing Fee results reported in this announcement are subject to change due to post announcement price
updates and independent audit.
3) A five-year history of Throughput, Margins and Processing Fees is attached below.
4) Refer to the explanatory notes/glossary for a definition of terms.

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HISTORICAL INFORMATION - REFINING



Appendix II 2021
20172018201920202021
Ja n/Fe bBa rre l s 000's7,1607,0116,9636,9094,429
RNZ USD GRM p e r b a rre l
1)
6.587.544.881.043.48
Singapore Dubai Complex GRM3.423.37-0.32-1.58-1.56
Uplift vs. Singapore Dubai Complex
3)
3.164.175.202.625.04
NZD Processing Fee (million)
2)
45.950.834.923.022.6
Ma r/Ap rBa rre l s 000's5,1406,9587,3124,6563,451
RNZ USD GRM p e r b a rre l
1)
9.356.826.630.671.50
Singapore Dubai Complex GRM
3.023.750.750.19-1.99
Uplift vs. Singapore Dubai Complex
3)
6.333.075.880.483.50
NZD Processing Fee (million)
2)
48.145.850.123.723.5
Ma y/Ju nBa rre l s 000's7,7553,9106,9453,867
RNZ USD GRM p e r b a rre l
1)
7.630.184.364.59
Singapore Dubai Complex GRM2.902.020.17-3.78
Uplift vs. Singapore Dubai Complex
3)
4.73-1.844.198.37
NZD Processing Fee (million)
2)
58.40.732.223.3
Jul/Aug
Ba rre l s 000's7,5117,6157,4191,766
RNZ USD GRM p e r b a rre l
1)
8.876.867.10-4.18
Singapore Dubai Complex GRM4.702.573.23-2.46
Uplift vs. Singapore Dubai Complex
3)
4.174.293.87-1.73
NZD Processing Fee (million)
2)
63.654.356.223.7
Se pt/Oct
Ba rre l s 000's6,8167,6397,2456,219
RNZ USD GRM p e r b a rre l
1)
9.317.096.161.15
Singapore Dubai Complex GRM4.732.473.55-1.64
Uplift vs. Singapore Dubai Complex
3)
4.584.622.612.79
NZD Processing Fee (million)
2)
62.257.849.323.3
No v/D e cBa rre l s 000's7,3427,3076,8036,459
RNZ USD GRM p e r b a rre l
1)
6.836.532.623.24
Singapore Dubai Complex GRM3.671.80-1.55-1.54
Uplift vs. Singapore Dubai Complex
3)
3.164.734.164.78
NZD Processing Fee (million)
2)
50.749.219.224.6
TotalBarrels 000's41,72440,44042,68729,8767,881
USD GRM per barrel
1)
8.026.315.341.632.61
NZD Processing Fee (million)
2)
328.9258.7242.0141.646.1
1) Excludes Fee Floor/Cap adjustment
2) Includes Fee Floor/Cap adjustment
3) RNZ uplift vs. Singapore Dubai Complex GRM is in USD per barrel

Page 5 of 6
EXPLANATORY NOTES/GLOSSARY
Gross Refining Margin (excluding Fee Floor/Margin Cap)
The Gross Refining Margin is calculated in USD as the difference between the value of products and the
cost of feedstock for each refining customer. The value of products use Singapore quoted prices
adjusted for New Zealand quality and the cost of importing those products to New Zealand. Feedstocks
are valued using the notional market values adjusted for the cost of getting the feedstock to the
refinery. The Gross Refining Margin incorporates the cost of hydrocarbon used as fuel and incurred as
process losses.
Typically, Refining NZ has an uplift over the Singapore complex margins of around USD 3.00 to 4.00 per
barrel. The value of the uplift varies due to fluctuations in freight rates, product quality premium, crude
market premium and operational performance. Product quality premium are the cost differentials
between products made to New Zealand quality and products made to the quality that applies to
quoted prices in Singapore. Crude market premium are the cost differences between the crude types
actually processed at Refining NZ and Dubai (used as basis for the Singapore complex margins). Refining
NZ’s crude diet comprises of crudes that price off Dubai as well as crudes that price off different
markers such as Brent. The fluctuations of these price markers relative to each other impact the uplift.
Margin Cap/Fee Floor Adjustment
The processing agreements with our customers contain both Floor and Margin Cap clauses, both
effective over a full calendar year.
The Fee Floor is the minimum Processing Fee due, for a calendar year, up to a current maximum of
NZD140.5 million. If the year-to-date Processing Fee is below the pro-rata Fee Floor, then an interim
pro-rata Fee Floor payment is made by the Customers. Should the Processing Fee exceed the Fee Floor
in future months any pro-rata Fee Floor payments that have been made are repaid to the Customers.
The Margin Cap limits the Gross Refining Margin for each customer to a maximum of USD 9.00 per
barrel over the calendar year. Should the Gross Refining Margin fall below the Cap in future months
any pro-rata Cap reductions that have been made are repaid by the Customers.
The Cap and the Floor are subject to year-to-date adjustments.
Any balance remaining at the end of the year cannot be carried over to the next year.
Processing Fee (after Fee Floor/Margin Cap)
The Processing Fee is 70% of the Gross Refining Margin after any adjustment for the Margin Cap or Fee
Floor. The Processing Fee is paid by our customers in NZD.
RAP throughput
RAP throughput is the volume of refined products, comprising gasoline, jet fuel and diesel that are
delivered via the Refinery to Auckland Pipeline (RAP) to the Wiri oil terminal.
Refining throughput
Refining throughput is the volume of feedstock intake, comprising crude oil, residues, natural gas and
blendstock, measured in barrels. One barrel equates to approximately 159 litres.
Turnaround
A scheduled outage of one or more process units, planned well in advance and typically occurring in
cycles of 2 years or more, for the purpose of significant mechanical inspection and repair

Page 6 of 6
EXPLANATORY NOTES/GLOSSARY (continued)
LTI (Lost time injuries) and LTIF (Lost time injury frequency)
Lost time injuries refer to fatalities, permanent disabilities or time lost from work.
Lost time injury frequency refers to the number of lost time injuries over a rolling 12-month period, per
200,000 hours worked.

TRC (Total recordable cases) and TRCF (Total recordable case frequency)
Total recordable cases refer to lost time injuries, medical treatment and restricted work cases.
Total recordable case frequency refers to the number of recordable injuries over a rolling 12-month
period, per 200,000 hours worked.
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 $100,000 of direct cost to the
company; a release of material greater than the threshold quantities given in Table 1 of API 754 in any
one-hour period; an 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.
Operational availability
Operational availability is the percent of time available for manufacturing after subtracting maintenance
and regulatory/process downtimes.
Unplanned process downtime
A unit downtime is “planned” if the refinery is aware of and has scheduled that unit outage in the
previous year. Unplanned process downtime is the weighted average of unplanned downtime across
all process units.