CHI - Channel Infrastructure Ltd (NZR)

[bull....]

maybe someone has some thoughts on this -

the processing fee arrangement incentivises nzr customers to process more oil thru nzr because they are rebated the margin above $9 so the higher the margin the bigger the rebate right?

So why is the throughput never reflect this so called incentive?

[bull....]

please explain bull........how much lower than maximum throughput does NZR run on a yearly basis.

do nzr have a max throughput?

[psychic]

don't forget that we are in extremely low yield and overall returns territory in world markets.
So given this I believe NZR price will settle with a p/e of 15-16 and a divi yield of 6%.
Do the maths and see where this puts the share price.
The timing of this sweet margin spot could not have been better for NZR.........they will be able to pay down some of the new debt very quickly and only 6 more months for the benefits of the new plant to kick in for all shareholders.
Have done some good research on the deal between NZR and it's major costumers/ shareholders and whilst on the face of it you could argue that it is a great deal for the share holder/ costumers it is also a deal that insures NZR can run at full capacity and all the off take is going to be taken up.
Further more given how many smaller refineries have closed in the last 2-3 years around the world because they can not compete with the mega refineries and cheaper imported product the value of this deal to NZR has become very evident.
Biggest threat to NZR profit is now the kiwi $ but it very much looks like the reserve bank is going to be accommodating

Yes, 100% is great. So long as we are happy that us minority shareholders are the only losers here. Did you come across any data that estimated how much more the Oil Companies might have bought from alternative sources had the kick-back not been in place? I'm guessing international prices would need too have been cheaper than the NZR discount (minority shareholder contribution) at say $10 per barrel...?

And we are expanding? Cool. We increase our share of the NZ petrol market from 55 - 65%. More cheap fuel for the boys, at our expense?

[dodgy]

Hi bull....
Some time back you requested I ask the NZR management "why the refinery didn't run at max capacity at all times", because you were unable to attend GM at Marsden Point. However the venue this week is in Auckland - are you attending? If not, what exactly do you wish to know based on what maximum throughput?
Regards
-dodgy (owner/shareholder - expectant of future s/p appreciation)

[bull....]

hi D,

no need to ask now thanks, I am going to go to the meeting now it is in Auckland so will ask the question over a club sandwich unless someone asks during the meeting or its addressed during there presentation.

[bull....]

does the wiri pipeline have annual fee negoiations?

[bull....]

I think the crack today is over 13 so it appears to be getting bigger each mth

[psychic]

yes but the information is readily available and has been for years so you should be well aware of this when investing in the company so surely it should be bought into your calculations before you choose to invest.
Seems to be a few on here grumpy about the status quo of the company.....there is a simple answer to that.
I think we all know the share price and dividend has been hit by other factors some of which have moved significantly in a more positive direction in the last 6 months.

This refinery was built with Govt insistance that Joe Public had a stake, a fair and equitable stake. It was never intended that minority shareholders should subsidise the the oil companies, nor accept whatever these guys handed down to them. The kickbacks were never approved by minority shareholders, but if you feel inclined to side with the big guys on this well good luck to you. You may be a little disappointed later if current and future profits get diluted by further back handers but you will have no reason to complain eh.

I would urge other Shareholders to take the time to consider Halliwells motion and support it

[macduffy]

A question for the techies:

NZR's RSI is weaker than it's been for 12 months although the shareprice is about a dollar higher than it was 12 months ago. Lots of factors involved here - currency, margin, profitability, market sentiment etc but would it be reasonable to conclude that the market anticipates further shareprice weakness?

[bull....]

A question for the techies:

NZR's RSI is weaker than it's been for 12 months although the shareprice is about a dollar higher than it was 12 months ago. Lots of factors involved here - currency, margin, profitability, market sentiment etc but would it be reasonable to conclude that the market anticipates further shareprice weakness?

I wouldn't think rsi reflects anything other than it falling from a previous overbrought situation