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NZ Refining has record throughput

NZN 17/01/2017 Rebecca Howard

New Zealand Refining, operator the country's only oil refinery at Marsden Point, had record annual throughput in 2016.

Its fee income for the year was the third-largest in the past 10 years.

The gross refinery margin in 2016 was an average of $US6.47 ($NZ8.97) per barrel, with annual throughput of 42.7 million barrels.

Processing fee income was $NZ276.6 million.

The gross refinery margin is the difference between the value of products and the cost of feedstock for each refining customer.

Its gross refinery margin was $US9.20 for the November to December period. With high throughput of 7.5 million barrels, the processing fee income was $NZ67.6 million for the period, the company said.

NZ Refining has continued to benefit from cheap oil, although it posted an 82 per cent slump in profit for the six months ended June 30 and trimmed its interim dividend as a build-up in global oil stocks weighed on margins.

The stock rose 5.6 per cent to $2.85 and has declined 21 per cent in the past 12 months.

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