ZEL - Z Energy.

[Jay]

Filled up yesterday with Pak N save voucher - same price as local Caltex (usually cheaper - before the standard discount) and was closer to where I was.

Then in my email last night there is 10 cent discount for today (quite often on wednesdays) - however needed it yesterday, the light has been on for a day and a bit already!

[peat]

The problem with sharetank is that you dont get any discount so there is a disincentive to use it.
I bought 100 L to check it out and I was a bit disappointed quite frankly that I had to pay the full pump price.
Only use I can think of is if I was forced to refill in Wellington, or Auckland or if I was sure petrol is going up a lot.

I agree though that it is kind of pathetic angling for a few cents here and there on the price to save a few dollars. Think of it as us as aiming for perfect competition in the true economic sense ;+)

[dodgy]

I'm not sure they are doing themselves a service with their nominal pricing.

Currently 224.9 here at Z with Gull 213.9 (just down the road)
But if you use the Z app you get 10c of that 11 differential. (so it says - I havent done it)
Given the Gull is the Speed Lane price (with their regular pump price 219.7) and Z is full service thats not too bad really.

Good morning all,
Please correct me, but my understanding is that "Gull" add biofuel or ethanol to their gas, that explains the price difference - at 1 stage it was the different tax rates for petroleum vs bio and if this is the case my experience shows a perceived worse experience in the car.
-dodgy

[iceman]

The problem with sharetank is that you dont get any discount so there is a disincentive to use it.
I bought 100 L to check it out and I was a bit disappointed quite frankly that I had to pay the full pump price.
Only use I can think of is if I was forced to refill in Wellington, or Auckland or if I was sure petrol is going up a lot.

I agree though that it is kind of pathetic angling for a few cents here and there on the price to save a few dollars. Think of it as us as aiming for perfect competition in the true economic sense ;+)

Agree with this Peat. I've been trialing Sharetank but it is a disappointment. Much better to use the app for "pumped" and "stacking" when they have a good offer on. The only reason I use Sharetank is that we allow our poor daughter at University to use my Sharetank.

[Beagle]

Good morning all,
Please correct me, but my understanding is that "Gull" add biofuel or ethanol to their gas, that explains the price difference - at 1 stage it was the different tax rates for petroleum vs bio and if this is the case my experience shows a perceived worse experience in the car.
-dodgy

My understanding is their 91 does not contain biofuel or ethanol but their 98 Octane does as its used as an octane enhancer. I understand their 98 effectively contains about 3% less energy with the addition of the ethanol so before using it one needs to check their vehicle is compatible with E10 (a 10% enthonol content) and one will use about 3% more fuel to do the same amount of work as if they filled with Mobil or BP98 Octane so you'd want about a 7 cents per liter lower price (compared to the discounted price of Mobil or BP) to use this fuel. Peak engine output will be 3% lower too.

Agree with this Peat. I've been trialing Sharetank but it is a disappointment. Much better to use the app for "pumped" and "stacking" when they have a good offer on. The only reason I use Sharetank is that we allow our poor daughter at University to use my Sharetank.

I've got one of those at Uni as well. Thanks for the reminder. This might be a good way to provide supplementary support.

[Grimy]

My understanding is their 91 does not contain biofuel or ethanol but their 98 Octane does as its used as an octane enhancer. I understand their 98 effectively contains about 3% less energy with the addition of the ethanol so before using it one needs to check their vehicle is compatible with E10 (a 10% enthonol content) and one will use about 3% more fuel to do the same amount of work as if they filled with Mobil or BP98 Octane so you'd want about a 7 cents per liter lower price (compared to the discounted price of Mobil or BP) to use this fuel. Peak engine output will be 3% lower too.

Correct. Most vehicles are okay with up to 10% ethanol. But your Owner's Manual will tell you (or the manufacturer's local distributor). Certainly pays to check prices as Gull often isn't cheaper when factoring in loyalty discounts - and that's 91 which is an easy comparison. As you say, you have to factor in the slightly worse fuel consumption with Gull's 98. Having said that, almost anywhere is going to be cheaper than BP's 95 and 98 out West Auckland.....

[Grimy]

I often end up buying Mobil for 91 and Z for 95 out this way (West Auckland). But you have to keep your eye on Gull Portage Rd, they are up and down like a yo-yo and can be the cheapest by miles (kms?) some days.

[Beagle]

Correct. Most vehicles are okay with up to 10% ethanol. But your Owner's Manual will tell you (or the manufacturer's local distributor). Certainly pays to check prices as Gull often isn't cheaper when factoring in loyalty discounts - and that's 91 which is an easy comparison. As you say, you have to factor in the slightly worse fuel consumption with Gull's 98. Having said that, almost anywhere is going to be cheaper than BP's 95 and 98 out West Auckland.....

Thankfully I now drive a vehicle that happy performs well on 91 Octane so I can dodge the extraordinary premium's being asked for 98 Octane.

[winner69]

That quarterly report of Z’s was pretty shocking really ....main takeaway continuing loss of share and that for last 4 quarters total Z volumes are down 7% on pcp while industry volumes down about 2% (allowing for Gull not included in industry volumes)

Reaffirmed guidance - that’s good - but I reckon the $350m-$385m had a lot of under promise over delivery in it when it was first announce. Things still not going to plan so I reckon the $350m-$385m has a lot of ‘hope like hell we make the $350m’ in it

[Beagle]

That quarterly report of Z’s was pretty shocking really ....main takeaway continuing loss of share and that for last 4 quarters total Z volumes are down 7% on pcp while industry volumes down about 2% (allowing for Gull not included in industry volumes)

Reaffirmed guidance - that’s good - but I reckon the $350m-$385m had a lot of under promise over delivery in it when it was first announce. Things still not going to plan so I reckon the $350m-$385m has a lot of ‘hope like hell we make the $350m’ in it

Really shocking I agree, and quite confronting to see Caltex petrol volume down a whopping 20% ! It does beg the very serious question if market share, margins and refining margins are under so much pressure in the third and forecast for the fourth quarter what does one think about their earnings prospects for FY21 ? Will we see a new low of $300 - $350m for FY21 ?

They lost market share in petrol, diesel, aviation, export...everything. Meanwhile what are they doing regarding their corporate overhead ? (given we appear to be past peak fuel consumption and heading down) ? Suppose its tough to cut corporate overhead when they have all those fancy investor presentations to prepare each year reminding shareholders its a growth company.

Throw in some new transparency required with a wholesale pricing regime and some new infrastructure demanded by the Govt to sure up supply of Jet fuel at Auckland airport and it starts to look very tough in FY21 to me. Well worth shareholders remembering how quickly and dramatically this company can change its dividends so serious caution is required when estimating what dividend might be sustainable on average going forward.

Is the current 40 cps annual dividend a classic dividend trap ?