NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Business

Z Energy's operating earnings increase 13% despite drop in sales

BusinessDesk
3 May, 2013 05:30 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Z Energy's retail petrol sales dropped 9% to $867 million. Photo / Dean Purcell

Z Energy's retail petrol sales dropped 9% to $867 million. Photo / Dean Purcell

Z Energy's second full-year of operation since its sale to local investors by Shell has produced a 13.1 per cent lift in operating earnings, although sales have fallen as the transport fuels distributor cut out loss-making contracts and faced severe competition on forecourts.

Earnings before interest, tax, depreciation and amortisation and changes in the value of financial instruments came in at $195 million in the year to March 31.

That was up from $172 million the previous year, despite a 5 per cent slide in the total volume of sales to 2.524 million litres of petrol, diesel, aviation fuel and other products.

Z's disclosure documents do not include a total revenue figure for the year, but show retail petrol sales were down 9 per cent to $867 million and commercial diesel sales were off 14 per cent to $562 million.

The fall in diesel sales reflected a "conscious decision" either tore-price or remove uneconomic commercial accounts.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Z is preparing for a possible sharemarket listing this year and appointed lead advisers for a float this week, as its joint owners, the New Zealand Superannuation Fund and Infratil, seek to reduce their exposure to the business and, in Infratil's case, to accumulate funds for other investments and debt restructuring.

The operating result falls squarely within the guidance range Z had already announced.

Capital expenditure of $71 million was at the low end of the announced $70 million to $90 million range, but some $20 million of unexpended capex is to be carried forward on incomplete projects.

Advertisement
Advertise with NZME.

Chief executive Mike Bennetts said forward guidance for the year ahead would come from Infratil rather than Z, because of the potential share offer, which restricted the company's usual ability to make forward-looking statements.

On a tax-paid basis, profit for the year was down 50 per cent at $35 million, but the figure is heavily affected by fuel holdings and other factors at balance date and is not regarded as an accurate indicator of underlying performance.

The company says operating costs were higher in the past year because of an $11 million increase in retailer commissions and $4.5 million of Christchurch earthquake-related repairs.

Rebranded Z outlets showed a 9 per cent increase in store sales, compared with a decline in those outlets still operating under a format unchanged since Shell's ownership.

Discover more

New Zealand

Winter cheer at the petrol pump

06 May 05:30 PM
Energy

Infratil annual net profit drops to $3.4m

13 May 11:45 PM
Energy

Refining NZ turns to profit

22 Aug 11:00 PM
Energy

Infratil stock 20pc undervalued - broker

07 Oct 12:00 AM

A sale and leaseback programme for its retail sites realised a net $82 million during the year to give a yield of approximately 7.6 per cent.

The profit presentation papers also showed a $12 million impairment had been booked against the company's 17 per cent shareholding in the Marsden Pt oil refinery, with a projected US$7 a barrel refining margin, down from US$7.40 in the year just ended.

However, Bennetts signalled improving margins from Z's crude and refined product supply chain.

"We expect new international procurement contracts for refined fuel and crude oil negotiated by Z over the last 12 months to deliver substantial savings for the company.

"With moves by Port of Tauranga to dredge to enable larger vessels, Z is positioning itself to use larger and most-effective import vessels to deliver Z's finished fuel products, which should also represent significant cost savings," with Z also reorienting to North Asian refineries.

The company is also advancing investment in 40 million litres of new storage capacity at Tauranga and the Port of Lyttelton.

Advertisement
Advertise with NZME.

Z is budgeting a $20 million dividend payment to its two shareholders and faces emissions trading scheme costs of $40 million.

Save

    Share this article

Latest from Business

Business

Woman blindsided to learn family home at risk of mortgagee sale

Premium
Wellington
|Updated

String of leaders left Wellington Chamber of Commerce before CEO’s abrupt exit

Premium
AnalysisLiam Dann

Inside Economics: NZ recession risks on the rise ... again! Plus: the boy who cried ‘tariff’ – Trump’s threats lose their bite


Sponsored

Tired of missing out on getting to global summits to help grow your business?

Advertisement
Advertise with NZME.

Latest from Business

Woman blindsided to learn family home at risk of mortgagee sale
Business

Woman blindsided to learn family home at risk of mortgagee sale

New data shows financial complaints are at historically high levels.

15 Jul 08:00 PM
Premium
Premium
String of leaders left Wellington Chamber of Commerce before CEO’s abrupt exit
Wellington
|Updated

String of leaders left Wellington Chamber of Commerce before CEO’s abrupt exit

15 Jul 07:00 PM
Premium
Premium
Inside Economics: NZ recession risks on the rise ... again! Plus: the boy who cried ‘tariff’ – Trump’s threats lose their bite
Liam Dann
AnalysisLiam Dann

Inside Economics: NZ recession risks on the rise ... again! Plus: the boy who cried ‘tariff’ – Trump’s threats lose their bite

15 Jul 07:00 PM


Tired of missing out on getting to global summits to help grow your business?
Sponsored

Tired of missing out on getting to global summits to help grow your business?

14 Jul 04:48 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP