Feb 21, 2012:

New Zealand Refining Ltd reported a 40 percent slide in full-year profits on Tuesday, as a fall in refining margins cut into its bottom line.  Net profits at the country's only refinery were NZ$34.4 million ($28.9 million) in the year ended Dec. 31, compared with last year's NZ$57.6 million.  Last month it said it expected a full year result between NZ$32 million to NZ$36 million because of lower margins.  The company reported a dividend of nine cents per share, compared with 10 cents a year ago.

It said the coming year was likely to remain volatile despite margins showing tentative signs of improvement. Shares in New Zealand Refining last traded at up 0.4 percent at NZ$2.89. So far this year it has edged up 2.8 percent.  NZ Refining, which supplies around 80 percent of New Zealand's refined fuels, is around 73 percent owned by the four major oil companies in the country, BP, Mobil Oil NZ , Caltex NZ, and Greenstone Energy Ltd, which bought Shell Oil's local retail operations.

It has been looking at the feasibility of a NZ$400 million to NZ$500 million expansion programme.

By Reuters