NZ Refining profit recovery

Friday 17th December 2010

NZ Refining Co earnings has bounced back part way, with it expecting net profit of $55 million to $65 million for the year to the end of December.

In 2009 the company's net profit was $23.6 million, down from $124.9 million in 2008.

The company today said its gross refining margins during the year-to-date had been relatively healthy and ahead of its expectations.

The average refining margin earned for the 10 months to October 31 was $US6.03, and since then margins had continued to track in the $US6 to $US7.50 range.

NZ Refining also said it had continued to repay debt on the Point Forward Project, from healthier cash flows, which would enable management to consider future growth opportunities.

Point Forward made major modifications to crude distilling at the Marsden Pt refinery, taking four years and costing $191 million.

NZ Refining shares were up 25c to $4.35, its highest level for a year, in lunchtime tradin.

NZPA

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