Channel Infrastructure, formerly known as Refining NZ, says its first half result is tracking to expectations, following a change in its business activities.
Marsden Point oil refinery Photo: LDR / Northern Advocate / Michael Cunningham
The company said 70 percent of the Marsden Point refinery decommission had been completed, as it transitioned to being a fuel import terminal in the first quarter, with terminal fees kicking in from 1 April.
Key numbers for the six months ended June compared to a year ago:
- Net profit $17.2m vs ($4.9m)
- Revenue $29.8m vs $1.7m
- Underlying profit $19.7m vs ($834,000)
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The company said it completed the refinery shutdown safely and to plan, and successfully completed 19 import shipments in the first quarter.
It said jet demand was more than 50 percent of pre-Covid levels, which was the highest level since 2019.
The company said its financial performance was tracking to guidance with next year's underlying profit expected to be at the top of expectations, as the oil refinery's transition to an import-only terminal was running on time and within budget.
"Work is progressing on a number of growth opportunities, alongside our partners, to support New Zealand's fuel security and decarbonisation, by using our highly strategic assets to deliver long-term shareholder value," Channel chief executive Naomi James said.
Work was underway to convert a number of tanks to increase storage capacity for customers, with further opportunities for additional tank conversions should they be required to meet fuel storage requirements.
"With increased fuel storage at Marsden Point, we have the opportunity to support New Zealand's fuel security now, and as the government looks to implement its expected fuel stockholding policy," she said.
The company expected to begin paying a dividend in March 2023, following the release of its full year result.