Sharechat Logo

Refining NZ announces Strategic Review

Wednesday 15th April 2020

Text too small?

Refining NZ today announced the commencement of a Strategic Review to determine the optimal business model and capital structure for its assets that will maximise “through the cycle” returns to shareholders, and deliver secure, competitive fuel supply to New Zealand.

Announcing the review, Chairman, Simon Allen said: “Refining NZ has quickly responded to the current COVID-19 situation but is challenged by structural conditions resulting in low refining margins globally and oversupply in the Asia region. It is appropriate for us to review the fundamentals of the business and the Company’s future within the New Zealand fuel supply chain.

“The Company has a significant investment in infrastructure critical to the New Zealand fuel supply chain, alongside a refinery that can provide critical skills and capabilities to the economy as it transitions to a lower carbon future. The Strategic Review will allow us to determine the best future use of these assets to support secure, competitive fuel supply to New Zealand, now and into a lower carbon future.”

The Strategic Review will look at opportunities to improve the competitiveness of refining operations and options to separate the refining and infrastructure assets or convert to a fuel import business model. The review will also look at the capital structure required for the preferred option to maximise value for shareholders.

The Chief Executive Officer, Naomi James, said: “Refining NZ’s assets play a critical role in the supply of transport fuel in New Zealand and the Company’s infrastructure position provides a strong competitive advantage, particularly in the supply of fuels to Auckland and surrounding areas. As well as the Company’s role in the fuel supply chain, Refining NZ is a major employer and makes an important contribution to the Northland economy. We know that the future for this business will need to look different and are open to all options to operate a high-performing, competitive refining and infrastructure business, and to alternative future import business models.

“Taking the step to commence this Strategic Review now ensures we can put in place the right plans for the Company’s future as we come through COVID-19 and play our role in supporting the recovery of the New Zealand economy. We will be working closely with our customers, government and other stakeholders through this process to make sure we consider all the options to provide a secure, competitive fuel supply to New Zealand now and into the future as requirements change.”

The Strategic Review is being led by the Chief Executive Officer, with support from external advisors. Refining NZ expects to provide an update on the Strategic Review process in June 2020.

Source: Refining NZ Announces



  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:

COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax
U.S. Can Destroy Huawei, Part Two
Green Recovery Could Create 850,000 British Jobs, Report Finds
RBNZ Warns Banks’ Ability to Absorb Shocks ‘Is Not Unlimited’
Trustpower makes solid progress in challenging year
Air New Zealand liquidity and 2020 earnings update
THL begins New Zealand Restructuring process
The customer is always right
The modern era of globalisation is in danger

IRG See IRG research reports