probably to do with NZR announcement and Z having to cough up money now to NZR
Printable View
Fuel majors to be required to publish wholesale prices
https://businessdesk.co.nz/article/f...olesale-prices (paywall)
Though I didn't think this would be such a big negative itself so it is probably a combination of things.
NZR result was a shocker AND very weak margins persisting for the first 2 months of 2020 and I would think likely to persist for some considerable time with this virus hosing down demand for all grades of fuel including aviation.
Pretty sure ZEL's most recent downgrade assumed the recovery of refining margins in early 2020 so the possibility exists of yet another downgrade for ZEL. Wholesale price publishing had a serious effect on margins in Australia, same to happen here ?
We still have the major capex announcement to come on improving the robustness of the Jet fuel storage at South Auckland to come and the costs involved in that and of course lets not forget ZEL will be selling heaps less jet fuel with so many airlines reducing capacity...
On the bright side, (thankfully there is one), with the record run of hot dry weather in the North Island I am sure ZEL would have been selling heaps more ice-creams than last year so shop sales will be up.
Is this starting to look like its bit oversold now!
A company with a social conscience
http://nzx-prod-s7fsd7f98s.s3-websit...230/317932.pdf
bit of a joke if they were excluded
oil just plunged to 32$ per barrel at the moment be expecting my petrol to drop big time shortly
Bad from memory...there's some sweet spot of about $50-60 a barrel apparently, again, from memory.
Oil goes up petrol goes up at the pump overnight .....oil goes down and prices take a while to gondown at the pump
The Z spin machine says -
@zenergynz
Spin machine here! It hasn't dropped b/c markets haven't settled - we don't want to be passing through wild price swings (what if it goes back UP by that much in near future?). I can tell you that we've continuously reduced our prices across all our sites over the past few wks.
Oil has been down for weeks before the massive collapse overnight. The price gouging just goes on and on at my closest Z where they still want $2.269 for 91 Octane, the same price they did weeks ago when oil began falling. Blatant highway robbery.
Part of me is hoping for a complete lockdown because of the virus so the highway robbery comes to an abrupt halt !