Refining New Zealand is expecting a better year this year after achieving a solid turn-around in the second-half of last year.
New Zealand's only oil refinery is now forecasting an annual net profit of up to $10.5 million, after its $7 million first-half loss and the previous year's $5 million loss.
The company's gross refinery margin of $US9.98 a barrel in November and December was the highest the company had achieved in five years and has allowed it to fully repay previous support payments by its major shareholders totalling $36.3 million.
Chief executive Sjoerd Post said the outlook is reasonably positive although uncertain.
Mr Post said he expected oil prices in the medium term to range between $50 to $70 dollars.