Refining NZ says low fuel margins and 25-year-old refining agreements are pushing the company to take a hard look at its operation. During the lockdown, the New Zealand Refining Company, which owns the Marsden Point oil refinery, has halved its normal output because of motorists being largely off the roads. "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," chairman Simon Allen told the NZX. Another issue had been significant hikes in electricity prices, "meaning that at the fee floor in the processing agreements Refining NZ does not cover its cash costs". Currently Refining NZ is 43 per cent owned by customers such as the oil companies, and 57 per cent by retail and institutional investors.

Source: Stuff April 15, 2020 01:41 UTC