Forum Archive Index - May 2001

["hugh webber" <hugh.webber@clear.net.nz>]

Well I do feel a bit uneasy over some points but life is a calculated
gamble I guess.
My calculation is that OPEC is going to make its stranglehold stick and as
the RM
is basically a margin on crude then that helps; also that its getting
environmentally
harder and dollars costlier to build new refineries (Bloomberg quotes $1.5
billion
which is US dollars) and in the US at least there are now a whole host of
different
types of petrol which are mandatory which means that petrol is no longer
easily
interchangeable between areas. NZR has been getting its labour force and
other costs
down significantly and that looks like continuing, also it has a
hydrocracker already
which copes with producing all sorts of fuel variations and specs and its
described as
a very modern refinery and an excellent one. Also its the only one in NZ
(Buffett's consumer
monopoly?). Sydney has two refineries but one is getting the chop. Possibly
its
the only standalone refinery in the world, all the others are part of one
particular oil
coy's ops and I spose NZ's IRD is watching carefully for oil coy rorts on
supply and
output prices. Hence I see the situation continuing for x years. Apparently
petrol
made from other materials (apart from nat gas) costs about $5 a litre so
its protected
there and oil discoveries are not keeping pace with the growing world
demand for oil
products.
Another thing that makes me uneasy about the chairman is that he accepted a

directorship in Tasman Pacific (the owners of QANTAS NZ) just days before
it went into
receivership. Um, I would have thought it was normal to have a chat with a
couple of
insiders on the state of play and have a squiz at the accounts before
accepting a
directorship but maybe that's superfluous......
cheers,
Hugh

----------
> From: Philip Robinson <fire_appliance@hotmail.com>
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] New Zealand Refining Limited
> Date: Sunday, 6 May 2001 22:28
> 
> Hugh,
> 
> Thanks for the AGM report and the no holds barred comment on the
chairman.
> 
> The dividends might be good, but don't you feel a little uneasy owning a 
> company that has absolutely no control over its profitability, or am I 
> missing something here? And a chairman with what seems like other things
on 
> his mind?
> 
> Cheers
> Phil
> _________________________________________________________________________
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