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.
I remember when it was that high and that dividend. I was influenced by the 1 in 15 year maintenance event coming to an end. Hopefully good times will roll from here.
I wonder what the ideal profit conditions are? Is it high USD and high refining margin rate? Don't really know.
Does anyone know if they can make low sulpha fuel for ships with the reconditioned/figured cracka unit?. Ships have to phase out of the high sulpha extreme polluting bunker fuel sh*t by around 2020
That's a good question...
Analyst Presentation HY18
I cant access the webcast conference on the 23rd. Anyone know how, appreciated.
Theres a slide about bunker fuel with sulphur having to be reduced from 3.5 to 0.5%. Im guessing they have the equipment to produce low sulphur bunker fuel. they actually sell sulpher by product now."Sulphur forming rephrased"
they mention ability to supply all oils to ships
I remember vaguely that bunker fuel is the treacly rubbishy leftover oil from the refining process full of pollutants.
Some mind-blowing pollution facts about ships (link at bottom)!
Hydrogen making unit too.And biofuels
120,000 tonnes a year CO2 reduction, great stuff
How 16 ships create as much pollution as all the cars in the world ...
Yes, I have just been reading the presentation in bed on my phone. The "golden age" references - what does that mean? Obviously I know nothing about this company. I just liked the idea of owning an oil refining company.
I wanted some z energy because they seem like a good company and I fill up my scooter at the local z. But I missed out. Then I thought, well the fuel comes from Marsden Point, so buy some NZR, so I did.
That was my strategy there. I'll move everything to index funds one day before I come a cropper.
I like your drift Bob. Ive bought new listing VEA it is similar to ZEL but in Aus, worth a look imo,but as always DYOR.
Golden Age , im guessing is when margins were at their best?
I like the green inclusions NZR are doing.More than token.
Hey Joshua, the refinery is already equipped with the ability to remove sulphur to below what the current and probably next maximum allowable sulphur content is.
The HCU doesn't really influence how much sulphur's in the fuel, it is more the quality of the crude that comes in. Which the large energy companies love to send the cheapest crude they can find. Good thing the refinery is pretty robust.
3 million barrels a day switch to low sulphur fuel. an op for NZR
IMO 2020: What's next? - Shell Global