6 May 2013

Z Energy not issuing earnings guidance

8:14 am on 6 May 2013

Z Energy is not issuing an earnings guidance for the coming year because of its likely imminent float.

The company's annual net profit halved for the full year, falling nearly 55% to $35 million for the year to March from $77 million last year.

This was a result of the value of its oil stocks which fell $31.5 million.

However its underlying operating profit rose to $195 million, compared with $172 million a year earlier.

Part-owner Infratil announced last week it had appointed four investment banks as lead managers of the sale of its shares, although it says it hasn't yet committed to the sale.

Infratil is targeting retail investors, and firms appointed include those with large retail client bases such as Craigs Investment Partners and Forsyth Barr.

Z chief executive Mike Bennetts says the company is preparing for the potential float by reviewing its accounting, and ultimately it is looking to have an offer document which it can take to the marketplace.

He says Z is expecting to announce who will replace its outgoing chief financial officer at the end of the month.

Infratil is expected to list the company in the September quarter, and it says the proceeds are not earmarked for any particular investment.