Sharechat Logo

Refining NZ announces non-cash impairment

Tuesday 4th August 2020

Text too small?

Refining NZ today announced that it expects to recognise a non-cash impairment charge in the order of $220 million before tax ($158 million after tax) in the 2020 half-year results.

The impairment charge is primarily due to revised refining margin assumptions, reflecting the excess refining capacity in the Asia-Pacific region and the effects of the COVID-19 pandemic on transport fuel demand, particularly jet demand. Refining NZ sets its long-term refining margin assumptions based on independent energy analyst forecasts.

The company remains comfortably within the 45% senior debt gearing covenant under its Facility Agreements at 27% following the impairment, which will also not impact on interest cover ratios that the company continues to meet in the current low margin fee floor environment.

The impairment charge is a non-cash item and is subject to finalisation and Board approval of the half-year financial statements.

Refining NZ will release its 2020 half-year results on 17 August 2020. 

Source: Refining 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:

Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Office Acquisition Now Unconditional
Scott Technology Limited (NZX: SCT) Announces Strategic Partnership with Savoye
TIL Logistics Group Limited (NZX: TLL) Pacific Fuel Haul Receives Notice of Industrial Action
Vista Group International Limited (NZX: VGL) Vista Group Acquires 100% of Cinema Intelligence
Fonterra Shareholders' Fund (NZX: FSF) Q1 performance and Milk Price update
IPO Offer: New Zealand Rural Land Co
Infratil Limited 6-year Infrastructure Bonds
Cannasouth Limited (NZX: CBD) United Nations Vote to Reschedule Cannabis
Westpac Banking Corporation (NZX: WBC) Enters into Enforceable Undertaking with APRA
Tower Limited (NZX: TWR) Reaches Agreement for Club Marine Boat Customers

IRG See IRG research reports