Yep I did nearly my full amount
Printable View
I didn’t realise the shares were allocated yet
Right. Well you will likely get all that you applied for!
Hhaha..the only share that has not rebound yet....so.... people will be soon flocking in ZEL.....
Basically only the cap raise holding this down. It'll eventually get the THL treatment soon.
Oz loves it up 4%.....cars are pumping petrol now....all Petrol consumption are back to normal except airlines
When / how do we found out our allocation? We should get what we asked for right?
Link now showing allocations.
Got it - thanks.
I have participated in the SPP and getting enough ZEL in the portfolio I better start looking into Z more.
I suspect that with the balance sheet now pretty much improved and NZ'rs now back up running their cars around town buying junk we will see a steady return to volume sales. However the aviation side of the business is going to impacted longer term. How much of a problem would it be if that sales stream dropped out of the business?
In 2020 annual report they said:
2,294m litres sold to commercial customers (49%)
1,543m litres sold to retail customers (33%)
843m litres of jet fuel (18%)
They also note that Aviation fuel is the lowest margin product they sell, so hopefully less than 15% decline in earnings but who knows.
Not ideal but at the current share price happy that there is a decent discount even if the aviation fuels business is severely impacted long term.
Bit concerned about them throwing their toys out of the cot re terminal gate pricing. Long been a understanding that using each other infrastructure collaboratively to balance supply and demand is good for everyone but suspect as these smaller low service retailers are cutting the big guys lunch they are going to throw them under the bus.
Statement below from their 2020 annual report
"Z has just over 45 percent fuel market share in New Zealand, but just over 50 percent of terminal storage.We’re more than pulling our weight.Progressively, expect Z to continue to step back from the established fuel industry sharing arrangements in which fuel and terminals were shared and move much more onto a solid commercial footing.
We’ve already started. We have exited the industry sharing arrangements at Nelson, as a starting point. If fuel companies, including new wholesale fuel suppliers, want fuel at Nelson, we will sell it to them on commercial terms at a price that reflects the capital costs of the terminals. That’s fair and reasonable.
What we don’t want to do anymore is provide fuel to competitors with no assets in an area at zero margin for them, to then on-sell to distributors at a cost we can’t even provide to our own retail/commercial networks.That’s distorting the operation of a proper market, rewarding a lack of investment and failing to see investments adequately rewarded."
Interesting question, refineries can alter the type of crude imported, to alter what products are produced. NZR uses heavy sour and is set up for it so not easy to change.
NZR produced about 85% of our pre-covid jet fuel demand, the rest was imported.
From what I can figure historically NZR makes a jet/DPK (dual purpose kerosene) cut of about ~15% on their bulk crude imported, perhaps it has changed since refinery upgrades. In cracking the fuel they have to produce off lighter fractions and yes it will become a headache:
https://www.odt.co.nz/star-news/star...anies-millions
However in ZEL case it is not a big worry with the plant just barely running until August, I don't think they will have storage problems. DPK is pretty versatile so I suppose if you had to you could export it.
I am learning more about refining than I ever wanted to (see NZR thread).