ZEL - Z Energy.

[winner69]

And $2.12 just 30k up the road at Z Upper Hutt. Lol

..somebody has to pay that horribly unfair Auckland Region Fuel Tax .....and the Jafas don’t appreciate it and still moan their heads off.....as Fred would say they don’t know how lucky they are

[Baa_Baa]

Was $2.36 at Z in Wellington last night ....that’ll put a rein on overall consumer spending

That Z shop doesn't sell 95 octane either does it? So $2.36 / litre for 91.

[Beagle]

Suppose you believe in the tooth fairy as well or is it as the stuff article says just coincidence

Was $2.36 at Z in Wellington last night ....that’ll put a rein on overall consumer spending

Its highway robbery right on taxcinda's, opps sorry Jacinda's, doorstep in Wellington. No wonder she thinks the fuel companies are "fleecing" Kiwi's.
As Coutts suggests just up the road where there's a Gull they are forced to play nice.
I really didn't imagine they would stoop that low to raise prices before a 10 cent discount day. Suppose that makes me a little commercially naïve and / or makes Z extremely manipulative and possibly deserving of regulatory oversight. If such a thing is on public display for those that take note to have noticed, it really makes you wonder how dirty things are behind the scenes.

Maybe there is something in Jascinda's determination to bring more competition into the wholesale market and I wonder what the Govt will do about it ?
Has she got some brownie points to be won back from the public after this week or what !

So in terms of notable next events to chart a path to this being possibly de-risked.
First up we have the half year results, (which last year were announced on 1 November). I think at that point ZEL would have a better handle on how the change in loyalty scheme is affecting margins, (they will have full month impact for August and September and indicative impact for October by then), and what the full year prognosis is for that so its highly likely we'll get a full year guidance update at that point.
Then there's the final recommendations of the fuel study, sorry can't remember when that's going to be released, can anyone help with a timeline on that ?

[macduffy]

Then there's the final recommendations of the fuel study, sorry can't remember when that's going to be released, can anyone help with a timeline on that ?

Did it go something like "This year next year sometime never"?

[winner69]

This week’s announcement reports on both lost volume and reduced margins .....double ouch

Sept quarter stats will be interesting .... esp their market share.....which hasn’t been growing of late.

Maybe their ‘strategy’ is a bit wonky ....takes more than a few buzz words and cool presentations to win.

[winner69]

Z industry lingo is rather confusing for plebs but like me

When I read this in the June quarter stats I thought it was quite positive - The percentage of fuel sold on discount decreased during the quarter .... ...sort of suggests less discounting ...good

From last week’s announcement re their margin problem maybe that Statement in July meant something else.

[Beagle]

I was really impressed with their earlier presentation when it said instore weekly sales were up 10% year on year as its instore where the "fleecing" really does goes on.
Fuel margins and volume must be under really intense pressure to get a downgrade of that magnitude barely a month after the new loyalty scheme has started.

I'm going to call it and remember who did it first. This is NOT their last downgrade of the FY20 year ! Mark my words.

[winner69]

It seems that the millions of AIRPOINTS members aren’t doing their bit.

Wasn’t that a game changer .....at least the excitement when it was announced suggested so

[Leftfield]

It seems that the millions of AIRPOINTS members aren’t doing their bit.
Wasn’t that a game changer .....at least the excitement when it was announced suggested so

IMHO this is the crux of Z's margin/profitability issues.

Put simply Airpoints/Flybuys etc only serve to confuse price comparison and the public are are increasingly sceptical that they provide any value (or reason to buy Z over other fuel suppliers.)

(Airpoints/Flybuy's are also relatively more expensive/inefficient for a company to run as compared to cut price offers.)

As a result I suspect fuel companies that offer a clear simple price saving are the companies that consumers are increasingly switching to (and Z's margin issues are evidence of this.)

[BlackPeter]

IMHO this is the crux of Z's margin/profitability issues.

Put simply Airpoints/Flybuys etc only serve to confuse price comparison and the public are are increasingly sceptical that they provide any value (or reason to buy Z over other fuel suppliers.)

(Airpoints/Flybuy's are also relatively more expensive/inefficient for a company to run as compared to cut price offers.)

As a result I suspect fuel companies that offer a clear simple price saving are the companies that consumers are increasingly switching to (and Z's margin issues are evidence of this.)

I agree. We certainly started to avoid companies who offer complicated discount schemes (unless they are straight forward volume discounts) whenever there is a better alternative available. I assume other consumers learn as well ;