21 Jan 2015

Refining New Zealand upbeat about 2015

7:00 am on 21 January 2015

Refining New Zealand is expecting a better year this year after achieving a solid turn-around in the second-half of last year.

New Zealand's only oil refinery is now forecasting an annual net profit of up to $10.5 million, after its $7 million first-half loss and the previous year's $5 million loss.

The company's gross refinery margin of $US9.98 a barrel in November and December was the highest the company had achieved in five years and has allowed it to fully repay previous support payments by its major shareholders totalling $36.3 million.

Chief executive Sjoerd Post said the outlook is reasonably positive although uncertain.

Mr Post said he expected oil prices in the medium term to range between $50 to $70 dollars.

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