Z Energy has reported full-year net profit after tax of $178 million, down 13% year-on-year.Earnings before interest, tax, depreciation, amortisation and changes in financial instruments was $434 million for the period to March 31. This was down $15 million (3%) compared to the same period last year.
A fully imputed final dividend of 30.5 cents per share brings total dividends for the year to 43 cents per share for a total cash dividend of $172 million, an increase of 33%. The dividend will be paid on May 29.
Z chief executive Mike Bennetts says the first half of the year had some of “the most difficult trading conditions in Z’s history”.
“The prolonged refinery shutdown, being a distressed purchaser of finished product and high pump prices, all adversely affected our margins.
“The sudden and dramatic fall in underlying commodity prices in the third quarter meant we regained some market position as more normal trading conditions returned during the second half of the year,” he says.
Total industry petrol volume was down 1.5% for the year as high retail pump prices drove more customers away from the pumps.
Rising commodity prices and a weaker New Zealand dollar led to 14 price increases and just two price decreases in the first half of the year.
“High retail pump prices meant that some customers sought alternatives to private transport, traded down from premium fuels, or simply reduced their fuel consumption. In the second half of the year some of this customer demand returned to the industry, but not all,” Bennetts says.
The company increased its market presence for the year with an additional 35 sites built across the country adding an extra 2% industry capacity. This is in addition to 60 new sites built in the last two years.
“The retail fuel industry in New Zealand remains extremely competitive with differentiated service offers, pricing and loyalty schemes from 21 different brands,” Bennetts says.
Bennetts also acknowledges the ongoing Commerce Commission review into the local fuel industry which is halfway through a year-long process.
“Z believes that the retail fuel market is highly competitive, and we’re pleased to be a part of the market study. We are looking forward to the clarity that the final paper will provide.”
Meanwhile, total industry volumes for diesel grew 3%, in line with New Zealand’s economy and GDP growth.
“Total industry volumes for diesel remained robust for the year which reflects New Zealand’s healthy economic output. Bitumen volumes increased in response to more funding for roading projects and our jet fuel and marine fuel volumes increased during the year, highlighting New Zealand as a favoured tourist destination,” Bennetts says.
