Sharechat Logo

NZ Refining to hold on to Independent Petroleum Laboratory unit

Thursday 13th October 2016

Text too small?

New Zealand Refining, which operates the country's only oil refinery, has decided to keep its lab testing unit that's been up for sale since last year. 

Whangarei-based Refining NZ has decided to keep its 74 percent stake in Independent Petroleum Laboratory, ending a sale process that began last year. The lab testing company's assets were valued at $5.2 million as at June 30, with liabilities of $1.5 million. BP Oil New Zealand holds the remaining 26 percent. 

"Through a strategic review and testing of the market, it is evident that Refining NZ is the natural owner of IPL, best able to create sustainable value from this vital New Zealand asset," it said in a statement. 

Independent Petroleum Laboratory was set up in 1999 and provides specialist petrochemical lab testing. It's expanded its footprint since then as Chevron, Shell and Mobil shut down their local labs in subsequent years, servicing clients across the Pacific and in Australia. 

It's nearing the end of a five-year plan launched in 2012 to broaden its range of services and deepen its research and development capabilities. 

Refining NZ shares were unchanged at $2.40, having slumped 36 percent so far this year.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar trades near 2019 low on Aussie rate outlook, China worries
Short window left to lock in good interest rates on term deposits
MediaWorks breakeven stymied by radio
Loan-to-value restrictions effective but have some drawbacks - RBNZ
Yili deal a timely cash injection for Westland farmers - ANZ
AFT interested in medicinal cannabis but says it's not commercially viable yet
Serko chalks up another year of 28% sales growth, profit dips on acquisition adjustment
NZ first-quarter retail sales grow 0.7%, slightly better than expected
SkyCity poised to enter online gaming space
AFT narrows net loss, turns cash flow positive

IRG See IRG research reports