Chevron sells out of NZ Refining

Marsden Point facility, the country's only oil refinery. Photo / NZ Herald

Chevron New Zealand, which runs the Caltex service station network, has offloaded its 11.4 per cent stake in Marsden Point operator, NZ Refining.

Investment bank Deutsche Craigs entered a block trade agreement with the local division of the US oil giant yesterday to sell the shares for at least $2.32 a piece, according to NZX announcement released this morning.

Harbour Asset Management analyst Shane Solly said the shares had already been allocated to investors.

"There's been a high level of interest from institutional and retail investors alike," Solly said. "This is a business that has some attractive utility-like components to it. It's completing quite a major expansion project which is expected to deliver some quite positive improvements over time."

The refinery's shares were halted pending the transaction, the company said in a statement.

Chevron NZ had its 35.5 million refinery shares listed as assets available for sale in its 2014 financial statements, which it valued at $78.5 million as at December 31.

The shares last traded at $2.52, having gained 14 per cent this year, valuing the holding at $89.5 million.

Chevron said its decision to sell the holding doesn't affect its arrangements under its processing agreement with the refinery.

Chevron NZ's latest accounts show gross operating revenue fell to $2.2 billion in the 2014 calendar year, from $2.35 billion in 2013. With most operating expenses not much changed from the previous year, the decline in sales resulted in net profit dropping to $43 million from $86.5 million a year earlier.

NZ Refining's other major shareholders include BP New Zealand, Mobil Oil NZ and Z Energy.

- with BusinessDesk