The cost overrun was not good news, but as they are now recommencing processing, presumably there should be no more bad news to come. Looking forward to higher dividends from 2019 onwards.
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I would expect little impact (if any) – people still have to drive to get from A to B and public transport in NZ is not a realistic option for many people. In the longer term, ICEs will continue to get more efficient and there will likely be some substitution from electric engines and biofuels, but higher demand as the population grows and becomes more affluent (in spite of the best efforts of our glorious political leaders) will offset this to a greater or lesser extent.
Then there's the refining spread - have a look at the 2018 analyst presentation which includes a slide showing expected regional demand for refined product outstripping expected capacity growth by a huge margin in the years ahead.
https://www.anzsecurities.co.nz/Dire...spx?id=4761626
Not ideal. I guess a few hiccups might be expected after a major shutdown like this. But I would have thought that welds in a critical piece of kit like this would be tested before recommissioning?
Half year tomorrow - should be interesting....... ;)
I wasn't expecting any dividend, so really happy with 3 cents! Outlook looks ok (um is that right?)
Likewise, the 3 cps dividend was a pleasant surprise not so much for the $$ hitting my bank account but for what it says about the second half of the year.
Slightly puzzled by the reference to bio-feuls and climate change in the investor presentation.
Good for you. I bought high at around 2.60 and have been averaging down ever since, now have an average price of 2.46.
My guess is that oil will be in high demand until well past 2050. Electric cars won't become significant in my life time. Refining: one of the few industries that Amazon won't disrupt/own...at least at this stage.
I wouldn't touch this company again with the length of an oil tanker, got skunked a couple of years ago by buying in at $3.50 for the big divvy at the time. Too many variables and when I saw none of the directors or management have any real skin in the game, I was out.