Forum Archive Index - May 2001

["Michael Gore" <michgore@paradise.net.nz>]

Hi David,
Those who regularly read this forum will know that I am relatively ignorant
and still learning about markets so don't take my word for it but perhaps
here is your answer - an unusually profitable year last year.  Now perhaps I
am wrong but I think it is the case that PE ratios and dividend yield will
be calculated on LAST years earnings, being an unusually profitable year
this may distort things.  Regards  Michael

Thursday 22 February 12:39 PM

          NZ Refining profit jumps in "abnormal" year

          AUCKLAND, Feb 22 (Reuters) - The New Zealand Refining Co said on
Thursday its result
          for calendar 2000 largely reflected an "abnormal" year due to an
unsettled international
          oil market.

          The company reported a net profit after tax of NZ$69.4 million for
the year to
          December 31, up from NZ$5.68 million in the previous year.

          NZ Refining raised its dividend to NZ$2.00 a share from 60 NZ
cents a year earlier. The
          company's shares last traded at NZ$17.00, a high for the year, and
up NZ$1.20
          Wednesday's close.

          The effect of product shortages in the Asia Pacific region, and in
the face of
          constrained crude supplies and expensive shipping costs, ensured
refining margins stayed
          generally higher than expected for the whole year, NZ Refining
said.

          There was also substantial benefit from the high value of the U.S.
dollar relative to the
          New Zealand dollar.

          "The result of these significant influences, together with a
continued focus on cost
          management, was to increase the net operating profit after tax to
NZ$69.44 million.

          "Compared to the very weak result of NZ$5.68 million in 1999, this
result highlights the
          high volatility from year to year in the international markets,"
NZ Refining said.

          Refining margins averaged $2.85 (1999 $1.70) for the year, and the
average exchange
          rate was US/NZ 0.45 (1999 US/NZ 0.53).

          Intake was 5.12 million tonnes (1999 4.94 million), resulting in a
refining income of
          NZ$174.93 million (1999 NZ$85.368).

          "Whilst this is a significant increase, refining crude oil
remained the most competitive
          source of supply for the domestic market," it said.

          Cash operating costs were NZ$86.97 million (1999 NZ$88.13
million), the decrease
          resulting from continued focus on the costs and efficiencies of
running the business, and
          the fact that the year was free of any major maintenance
shutdowns.

          NZ Refining is largely owned by oil companies BP, Mobil Oil NZ,
Shell and Fletcher
          Challenge Energy.

          FCL Energy's 14 percent stake will pass to a new Fletcher entity,
Rubicon, once the
          dismantling of the Fletcher Challenge group is completed in late
March.

          (c) Reuters Limited 2001

          REUTER NEWS SERVICE
----- Original Message -----
From: "David" <davida@wave.co.nz>
To: "sharechat" <sharechat@sharechat.co.nz>
Sent: Friday, May 04, 2001 11:40 AM
Subject: [sharechat] NZ Refining


> Could someone tell me why this share appears to have the best dividend
yield
> of all 21%
> a low p/e  5.5  high nta etc.Is it just plain neglected or what.
> Have I missed something glaringly obvious?
>
> Dave
>
>
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