Operational Update for September/October 2021

19 November 2021
NZX Announcement

Operational Update for September – October 2021








COMMENTARY
Refining NZ’s excellent personal health and safety performance continued, with the Company celebrating the
significant milestone of two years without a recordable injury in October. There were no Tier 1 or 2 process
safety events during the period.
RAP throughputs at 1.6 Mbbls were c.37% lower than the same period last year, due to the lower jet fuel
demand at Auckland International Airport and lower petrol and diesel demand following Auckland’s Level 4
and Level 3 lockdowns during the period. With the Australia/New Zealand travel bubble closed throughout
the period, jet fuel volumes fell to c.22% of pre-COVID levels, down from c.36% in July/August. Petrol and
diesel RAP volumes in September/October averaged c.50% and c.80% of pre-COVID levels, respectively
before recovering to c.70% and c.100% of pre-COVID levels by the end of October.
The September/October GRM was US$4.62/bbl, generating processing fee revenue of NZ$23.5 million at the
Fee Floor. Singapore Dubai complex margins for the September/October period increased to an average
US$0.70/bbl, due to demand recovery and reduced Chinese exports. However, margins remain volatile with
the resurgence of COVID-19 cases and supply changes with the return of refineries from maintenance and
level of Chinese exports. Refining NZ’s GRM uplift over the Singapore margin was US$3.92/bbl, impacted by
higher prices for crudes processed relative to Dubai crude and the export of jet fuel, petrol and fuel oil during
the period to help manage stocks, following the reduced New Zealand product demand.
HIGHLIGHTS
• The Company celebrated two years without a recordable injury in October.
• RAP volumes were c. 37% lower than the same period last year due to Auckland’s Level 4 and Level 3
lockdowns.

• Processing Fee revenue was NZ$23.5 million, at Fee Floor levels.
• October’s net debt closed at NZ$230 million, reflecting the simplified refinery’s cash neutral operations
at the Fee Floor.
• Detailed planning for an import terminal conversion in 1H22 has been completed. The Company is in
the final stages of concluding Terminal Services Agreements with customers which will enable a final
investment decision to be taken by the Board.

Page 2 of 6
October’s net debt closed at NZ$230 million reflecting cash neutral operations at the Fee Floor. The Company
remains on track to deliver cash neutral
1
operations across the full year.
The Company has completed operational planning for the conversion of the Marsden Point site into a fuels
import terminal and is in the final stages of concluding the Terminal Services Agreements with customers,
which is the key remaining step ahead of the Refining NZ Board’s final investment decision. Preparations
for a conversion in H1 2022 remain on track.



Authorised by:
Denise Jensen
Chief Financial Officer

For further information:
Laura Malcolm
Communications 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 2021Sep/OctSep/OctFYFY
2021202020212020
Health, Safety & Environment
LTI
#
0000
LTIF
#/200,000hrs
--- -
TRC
#
0000
TRCF
#/200,000hrs
--- -
Tier I Process Safety Events
#
0020
Tier II Process Safety Events
#
0000
Releases outside of consent
#
0095
Refining
Brent Crude Oil Price
US$/bbl
79.140.569.341.7
Exchange Rate
US$/NZ$
0.710.670.710.65
Operational availability
%
98.899.995.298.2
Unplanned process downtime
%
0.04.50.023.2
Refining throughput
Mbbl
5.146.2223.8329.88
Gross Refining Margin
US$/bbl
4.621.153.441.63
Gross Refining Margin
US$M
23.722.2118.8131.6
(including Fee Floor/Margin Cap)
Processing Fee (including Fee Floor/Margin Cap)
US$M
16.615.583.292.1
Processing fee (including Fee Floor/Margin Cap)
NZ$M
23.523.3117.0141.6
Distribution
RAP throughput
Mbbl
1.62.511.114.7
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.

Page 4 of 6
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 GRM3.023.750.750.19-1.99
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's7,7553,9106,9453,8675,171
RNZ USD GRM p e r b a rre l
1)
7.630.184.364.594.07
Singapore Dubai Complex GRM2.902.020.17-3.78-2.62
Uplift vs. Singapore Dubai Complex
3)
4.73-1.844.198.376.68
NZD Processing Fee (million)
2)
58.40.732.223.323.5
Jul/AugBa rre l s 000's7,5117,6157,4191,7665,644
RNZ USD GRM p e r b a rre l
1)
8.876.867.10-4.182.96
Singapore Dubai Complex GRM4.702.573.23-2.46-2.54
Uplift vs. Singapore Dubai Complex
3)
4.174.293.87-1.735.49
NZD Processing Fee (million)
2)
63.654.356.223.723.9
Se pt/OctBa rre l s 000's6,8167,6397,2456,2195,136
RNZ USD GRM p e r b a rre l
1)
9.317.096.161.154.62
Singapore Dubai Complex GRM4.732.473.55-1.640.70
Uplift vs. Singapore Dubai Complex
3)
4.584.622.612.793.92
NZD Processing Fee (million)
2)
62.257.849.323.323.5
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's41,72440,44042,68729,87623,832
USD GRM per barrel
1)
8.026.315.341.633.44
NZD Processing Fee (million)
2)
328.9258.7242.0141.6117.0
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 USD9.00 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.