Hi Bull
I don't remember any mention of NZR having any percentage draw down of Dubai, Brent etc crude for the refinery but that the reconfiguration will enable the use of a wider range of crude feed stocks , e.g differing viscosity and sulphur contents etc. This would enhance profitability due to differing product production eg more fertilizer raw material or whatever. Even NZ oil from Maari/Tui etc. priced on Tapis I think, can be processed if considered desirable (low viscosity?).
Regards
-d
Hi D
40/60 is the correct figure from my understanding like snapiti mentioned
You are also correct feedstock can be changed to maximise profit as they see fit.
40/60 is the correct figure from my understanding like snapiti mentioned
You are also correct feedstock can be changed to maximise profit as they see fit.
Hi Bull
I can clarify that at the AGM in April which I will attend. If you or any other owner/shareholder wishes to ask anything I will be happy to oblige within reason.
-d
not the spread I was referring to.....perhaps I should of used the word differential.
Page 9 of their latest presentation illustrates it much better.
Page 17 also mentions that the lower brent premium to Dubai is very positive to the company.
I am sure this is because they can make a higher % of quality/higher margin products from the Brent crude so the less premium the more profit.
They certainly are in a great position but given all the head winds the company has faced over the last 3 years it was certainly overdue........ looks like the sweet spot is here to stay.
Great stock to be holding for the foreseeable future.
As a very basic tool to know how well NZR are doing just look at how much the raw product (oil) has dropped in the last 4-5 months(about 50%) then have a look at the price the finished product has declined....only about 25%
Hi Snaps
We seem to both agree on one thing - this company is solid and improving - natural disasters excepted. However my belief is that the price of oil input or motor spirits output has no bearing on profit except for 3rd party holding costs and to the NZR the company very minimal processing flexiblity. The ability to process different oil blends into more value added finished product is of benefit to us , greatly assisted by the current upgrade. As I said to Bull if you are not going to the AGM fire me any questions for clarification.
Regards and profitable holding.
-d (owner/shareholder)
jeez they would be hard to beat the catering in my home.....do they do a webinar.
I have only taken a shareholding in the company from october last year........taken a much bigger one of late
Snaps
They recently have recording for broadcast at the meeting, so I think they probably will. The refinery tour is well worth a go to appreciate the mechanics of this beast.
-d
Nice announcement. Hit the cap and banked 6m and high margins are continuing. Great work shifting the shutdown into the end of April to max the higher margins. Well done guys. You cant really control the margins but you can influence plant availability. Thinking on their feet.
great report, also glad to see them defer maintenance to get more margin ( lot of refiners doing this) anyway guess if margins stay high doesn't really matter then in retrospect.
I read the throughput with interest - particularly the reference to the Dubai spread? I can't get my head around this so will raise after the AGM as to the quantum and effect on profitability. If someone who knows more about this - please enlighten me .
Thanks
dodgy
Originally Posted by dodgy
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