Friday 29th June 2018
|Text too small?|
New Zealand Refining's hydrocracker shutdown will cost it between $5 million and $7 million, with the machinery out of service until the middle of next week.
A hydrocracker uses hydrogen to break down heavy oil fractions, recovered from crude oil, to produce petrol, kerosene - used as jet fuel - and diesel. NZ Refining is New Zealand's only oil refinery, and describes its hydrocracker as "the heart of the refinery."
The Whangarei-based company said the unit was shut down earlier this week after a newly installed valve failed, lengthening delays from its scheduled refinery maintenance shutdown. Today, it said the leak would have a net profit impact of between $5 million and $7 million, and it expects the hydrocracker to produce on-specification fuels by the middle of next week.
The refinery-wide shutdown was planned to run in stages from April 20 to June 8, and NZ Refining was to spend $85 million on it with a predicted financial impact of $30 million, but the restart was delayed due to maintenance issues and minor leaks. Last Friday, the company said there had been a delay with the hydrocracker due to two minor leaks and its team was assessing when the unit would be restarted. The latest leak was unrelated to those earlier leaks.
NZ Refining also said last week that the shutdown would cost $25 million to $30 million more than the $85 million it previously forecast, implying a cost of $110 million-to-$125 million, and will cut $40 million from profit in calendar 2018 as opposed to $30 million previously flagged.
The company's shares last traded at $2.49, and have fallen 6.8 percent this year.
No comments yet
NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report