NZRC Throughput and Margins Report for November/December 2009

Reports & Releases

Press Releases

Monday, 8 February 2010

Throughput for the two month period was 7.2 million barrels with the plant operating at near full capacity. [p1] The average Gross Refining Margin (GRM) generated for the November/December period was USD 1.18 per barrel. At an average exchange rate of USD/NZD 0.72, the Processing Fee earned for the two month period was NZD 8.2 million. As previously reported, over-capacity in the global refining industry and reduced demand for oil products has significantly reduced (and on some occasions eliminated) refining margins. When combined with a relatively strong New Zealand dollar, the processing fees that we earned have been very low. Markets are showing some signs of a recovery (during late 2009 and early 2010) but supply/demand fundamentals have not yet changed sufficiently to expect a sustained recovery in refining margins at this stage. For the full year 37.9 million barrels of crude were processed by the refinery which was in line with the company’s target. The Gross margin for the year was USD 4.16 and the average exchange rate was 0.58. Total processing fees generated for the year were approximately NZD 188.6 million. Four years’ history of Throughput, Margins and Processing Fees can be found on the company’s website /.