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Z Energy eyes more from Caltex deal

NZ NewswireNZ Newswire 5 days ago Jonathan Underhill

Z Energy said it has identified up to $15 million of additional savings from the integration of the Caltex and Z businesses.

The Wellington-based service station operator gave the updates as part of a presentation it hosted for institutional investors saying it expects $10m-$15m in additional synergy benefits to bring the total to be achieved in the 2018 year to between $40m-$45m.

The transport fuel company bought Chevron's Caltex and Challenge! brands for $785m this year, making it the country's biggest petrol retailer, but the regulator approval required it to sell 20 sites.

The deal gave Z about 49 per cent of the retail transport fuels market.

Z shares, which listed in August 2010, have soared 112 per cent in the past five years. They were recently up 0.3 per cent at $7.80.

The company is scheduled to release its first-half results on November 10 and said it will update its guidance for the full year at the same time.

Z has committed purchasers of 19 of the sites it is required to sell and has disposed of one by surrendering its lease commitment. The impact of the divestment is estimated to be about $15m a year, it said.

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