Z Energy is reporting an improved result despite operating in an environment in which refining margins are sharply down, and where fuel margins and Z-branded volumes have been flat.
The acquisition of Chevron New Zealand’s Caltex and Challenge! service station networks pushed Z Energy fuel volumes up by 57% in the six months ended September 30.
This increased volume allowed Z Energy to post a 22% increase in revenue.
Profit rose to $82 million from $67 million a year earlier, according to the companies half year report released to the NZX. Sales climbed to $1.66 billion from $1.3 billion.
Z Energy chief executive Mike Bennetts says the result represented a solid financial performance for the first half of the year, delivered at the same time the Caltex and Z businesses were being brought together into one integrated operation.
“Integration is progressing very well, and faster than originally planned, and we are excited about the value our new combined organization is now positioned to deliver for customers, shareholders, and stakeholders alike,” says Bennetts.
“We’ve safely combined the two companies to use standard systems without disruption to our clients and over the period we’ve delivered sound financial performance that sets us up very well for the last half of the year and beyond,” says Bennetts in the half year report.
“Z’s improved result has been generated in an environment in which refining margins are sharply down from historically record levels, fuel margins and Z-branded volumes have been flat, despite modest industry volume growth, and there has also been a significant change within loyalty programmes across major retailers,” he says.
