Marsden Point's New Zealand Refining Company operated at near full capacity for November and December, with a throughput of 7.2 million barrels, but margins dropped to the lowest point in at least five years.
The gross refining margin was $US1.18 a barre
Marsden Point's New Zealand Refining Company operated at near full capacity for November and December, with a throughput of 7.2 million barrels, but margins dropped to the lowest point in at least five years.
The gross refining margin was $US1.18 a barrel, compared with $US9.00 for the same period in 2008 and a 2009 high of $US8.88 a barrel for the January/February period.
Refining margins have been cut drastically or in some cases completely, as demand for oil products reduced during the recession, along with a global over-supply.
In an NZX (NZR) announcement today, the company said combined with a relatively strong New Zealand dollar, processing fees earned had been “very low”.
The total processing fee billed for 2009 was $188.7 million compared to $346 million in 2008. The total of crude oil processed was 37.9 barrels.
A company spokesman said that while some global markets including China, India and Europe showed some signs of recovery (GDP) in late 2009 and in early 2010, it was not enough to expect a sustained recovery in refining margins, it said.
For the period, the processing fee was $8.2 million on an exchange rate of USD/NZD 0.72.
Company shares were down from $3.81 to $3.75 this afternoon.
