Chevron to exit NZ Refining, shares halted for bookbuild of 11% stake

Thursday 28th May 2015

Chevron New Zealand, which operates the Caltex service station chain, will exit its holding in New Zealand Refining, selling its 11 percent stake via a bookbuild.

The local unit of the second largest US energy producer has entered a block trade agreement with Deutsche Craigs to sell its stake in New Zealand's only oil refinery business by way of a bookbuild. The refinery's shares were halted pending the transaction, the company said in a statement.

Chevron NZ had its 35.5 million refinery shares listed as assets available for sale in its 2014 financial statements, which it valued at $78.5 million as at Dec. 31. The shares last traded at $2.52, having gained 14 percent this year, valuing the holding at $89.5 million.

Chevron said its decision to sell the holding doesn't affect its arrangements under its processing agreement with the refinery.

Chevron NZ's latest accounts show gross operating revenue fell to $2.2 billion in the 2014 calendar year, from $2.35 billion in 2013. With most operating expenses not much changed from the previous year, the decline in sales resulted in net profit dropping to $43 million from $86.5 million a year earlier.

BusinessDesk.co.nz

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