Z Energy is reporting reduced quarterly retail volumes as a result of COVID-19 lockdowns and increased costs at the pump.
However, commercial transport volumes for the third quarter 2022 financial year remain consistent compared to the previous period.
Z reaffirms its FY22 RC EBITDAF guidance to be between $270m and $310m.
Chief executive Mike Bennetts says the weaker NZ dollar exchange rate has also had an impact on reduced volumes.
Retail volumes were down 12.2% year-on-year in the third quarter while commercial volumes were consistent with FY21 but up 2.1% for the same third-quarter period in FY20.
Import only supply chain
Following Refining NZ’s announcement to become a fuel import-only terminal at Marsden Point by April this year, Z says it has completed its RFP processes with term suppliers and import shipments under these new contracts are expected from February.
Ampol
A full acquisition of Z Energy by Australian fuel retailer Ampol is also “on track” with the New Zealand Commerce Commission requesting an extension to March 16 with significant focus on the sale of Gull by Ampol.
Biofuels mandate
In December the Government confirmed it will introduce a Sustainable Biofuels Mandate from April 1, 2023 to help reduce greenhouse gas emissions in the transport sector.
Z says it supports the announcement as it sets a “clear agenda” for the industry on what is needed to achieve a low carbon transport fuels future.
Z has recently signed an MoU with Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel to collaborate to bring low-carbon fuels to the New Zealand market.
