NZ Refinery Reports one of the Best Profits Owing to Low Crude Prices and Increasing Demand

NZ Refinery Reports one of the Best Profits Owing to Low Crude Prices and Increa

New Zealand Refining reported one of the best profits in history on Wednesday, helped by weaker NZ dollar, elevated refining margins, drop in crude oil prices to its lowest in more than a decade at close to US $30 per barrel and strong plant reliability.

Refining New Zealand reported a 1400 percent profit boost compared to 2014, at $150.7 million. It owns the fuel refinery at Marsden Point.

The only oil refinery operator in the country earned net profit of $151 million in the year till December 31, 2015 compared to $10 million one year ago. The increase was partially pushed by close to doubling in the mean gross refining margin at $US9.20 per barrel before floor adjustment in comparison with $US4.96 a barrel noted in the year prior to 2015.

The strong result was based on overall revenue of $445.2 million. In 2014 the revenue amounted to $230.6 million. It included a record processing fees of $379 million on the biggest largest ever amount of crude oil processed at 42.6 million barrels. Income tax calculated based on the result was $58.7 million in comparison to $4 million in the previous year.

Sjoerd Post, Chief executive of the company said, the company experienced "manufacturing nirvana." With low crude oil prices, the raw product, petrol prices had dropped leading to an increase in demand for from consumers; the result being a comparatively stable selling price. Post said that motorists were driving more, pushing the margins to a stronger level.