You've hit the nail on the head I think Scrunch. I was thinking the same thing. In order for them to be able to do their shutdown next year...
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From the NZX
S&P/NZX 50 & S&P/NZX 50 Portfolio Index – Effective at the Open on September 21, 2020
Action Code Company
Addition SKO Serko Limited
Removal NZR The New Zealand Refining Company Limited
huge buyer for 6 million shares at half a cent
Hopefull at best. Saw that and thought ohhhh the cheek :eek2:
Hmmmm 8 million shares through on Friday at the close for 61c. That's a biggie
hilarious that the oil majors are getting upset that they have to give money to NZR because of the processing agreement , they were not complaining about the cap they put in the agreement for when margins were good lol
https://www.nzx.com/announcements/360219
Have just struggled through this entire thread. Very interesting. Seems to me that the low 60c sp is not due to the oil and gas industry being at death's door. The producers may have to write off some reserves that will never be needed but there will be a role for refineries for decades to come. Marsden Point is at a disadvantage to the asian mega refineries particularly in an oversupply situation but there must be a good chance that overcapacity will be absorbed as things return to normal.
It's very clear from the thread that this is a cyclical industry. SP at 60c equates to as little as 5 years dividends in average years.
I think non oil company shareholders would be best off by far by continuing to run the refinery at fee floor until times improve. Which going on past history could be very soon. Continuing to run the refinery would make most sense if capital expenditure is kept to a minimum as value is extracted from it.
Probably in the oil companies best interests to keep it going too.
I think you can be sure that the refinery will be run in the oil companies' best interests. They are the majority shareholders.
~42% owned by mobil, z and bp, combined.