Z Energy Limited (NZX: ZEL) 1HFY22 Earnings

Thursday 4th November 2021

Z Energy (NZX / ASX: ZEL) today announced its earnings for the six months to 30 September 2021.

Z Energy (Z) reports its earnings on an historic cost (HC) as well as replacement cost (RC) basis. Statutory financial statements are reported on an historic cost basis in accordance with NZ IRFS, however replacement cost accounting is the globally used non-GAAP industry standard to measure financial performance.

Historical cost net profit (loss) after tax (HC NPAT) was $92m for the half year, up 259% from a loss of ($58m) in the prior corresponding period (PCP) primarily driven by rising crude and product prices.

Z reported replacement cost earnings before interest, depreciation, and amortisation (RC EBITDAF) of $114m, up 20% from $95m in the PCP primarily due to increased refining processing volume and improved unit refining margin along with increased C-Store sales and Z establishing a long ETS position in 1Q. Z’s replacement cost net profit after tax (RC NPAT) was $11m, up 158% from a loss of ($19m) in the PCP.

Mike Bennetts, CEO for Z Energy commented, “Z remains focussed on its FY24 roadmap objectives; to optimise the core business, transition the company to a low carbon future and maintain disciplined capital management. Z delivered on its four-point improvement plan against a challenging operating environment from COVID-19 related lockdowns and rising crude and product prices.”

Net operating cash flow decreased versus PCP due to the cash settlement of the CY20 Emissions Trading Scheme (ETS) obligation and increased product prices.

A fully imputed interim dividend of 7 cents per share will be paid on 8 December 2021 with the dividend record date being 19 November 2021.

Please see the links below for details

Z Energy 1HFY22 Results and Shareholder Circ

1hFY22 results announcement

1Hfy22 distribution notice

ZEL 1HFY22 Fin Statements

Source: Z Energy Limited

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