Faster than expected debt reduction could see Z Energy review its interim distribution policy.
That follows its acquisition of Chevron New Zealand’s Caltex and Challenge! Brands, Businessdesk reports
It expects to be close to its target range of two times net debt to replacement cost operating earnings before interest, tax, depreciation, amortisation and fair value adjustments (ebitdaf) by the end of the 2018 financial year.
“This is three to four quarters earlier than was originally anticipated at the time of announcing the acquisition,” Z Energy said in a quarterly update to the NZX.
It has reduced debt thanks to the sale of some service station sites and cost savings.
Z bought the Chevron assets for $785 million last year, making it the country’s biggest petrol retailer, with about 49 percent of the retail transport fuels market.
