DOCSLIB.ORG

Arotahi Ki Ngā Tukuhanga Chair and CEO Report: Focused on Delivery

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Arotahi Ki Ngā Tukuhanga Chair and CEO Report: Focused on Delivery Arotahi ki ngā tukuhanga Focused on delivery Z ENERGY ANNUAL REPORT For the year ended 31 March 2021 Te pūrongo a te Hēmana me Te Taiurungi: Arotahi ki ngā tukuhanga Pg 1 Z ENERGY ANNUAL REPORT 2021 REPORT ANNUAL Chair and CEO report: Focused on delivery Covid-19 delivered a momentous Commercial fuel volumes (primarily challenge to New Zealand, and to Z. It’s marine and jet fuel) are still affected had a real impact on our business, but, in by continued Covid-19 disruptions and the face of this challenge, we have built a with repeated short regional lockdowns stronger, leaner, more resilient business. impacting Retail volumes. Additionally, trading conditions in the final quarter Through Covid-19 Z has focused squarely of FY21 were challenging: intense retail on two things: the safety and wellbeing of competition has continued and crude our people, customers and communities; oil prices have increased substantially, Our strategy is: and delivering against the commitments further compressing margins. we have made to shareholders. Assuming no further Covid-19 lockdowns, To solve what matters for a moving world It has been a year of markedly different we expect to increase earnings in FY22 halves: the first half was a period as we continue to reduce structural costs, of concerted crisis management, by optimising our core business so we can hold our market share, optimise the use recapitalising our balance sheet and of our terminals to improve returns and establishing a new way of working through transition to a low carbon future. deliver new customer offers. At the same time we will manage capital carefully. With this financial result we have resumed dividend payments six months earlier We are tightly focused on: We expect to increase earnings than forecast. We will continue to focus on paying down debt and will further in FY22 as we continue to reduce strengthen Z’s balance sheet. Reducing costs structural costs, hold our market We have continued to build our Holding market share customer-focused strategy. share, optimise the use of our Through enhancing our customer experience (CX) and digital capabilities Monetising scale terminals to improve returns and we have increased revenue by introducing innovative, digital-enabled Managing capital deliver new customer offers. offers for our customers and improving the customer experience. Over FY21 we lockdown conditions. The second half has have built a lower-cost business that focused on cutting costs, optimising the is more flexible and future-focused. core business and setting the company In terms of improving current up to benefit financially from structural performance, Z remains tightly focused industry changes. on four areas of continued improvement: At the end of this year Z’s staff engagement Reducing costs is at an all-time high, and we are proud Holding market share Resumed to be just below the top 10 percent of Monetising scale organisations globally, as measured by Managing capital dividends our engagement service provider, Peakon. Through this very challenging year we Reducing costs Z has returned to paying dividends 6 months ahead of schedule have collectively improved our resilience, Over the year we made strategic and FY21 strengthened our culture and our business structural changes to our operating and we have delivered for our customers. expenditure base without compromising We have delivered Replacement Cost the integrity of our operations, our Earnings Before Interest, Taxation, capabilities or our strategy. Depreciation, Amortisation and Fair value We reduced structural, annually recurring movements of $238 million, (guidance of costs by $49 million, and one-off costs of $235–$245 million), as rising oil prices $14 million as a result of Covid-19 — for and retail discounting affected margins example, through suspended marketing in the second half of the year. and reduced fuel delivery costs. CHAIR AND CHIEF EXECUTIVE’S REVIEW ANNUAL REPORT 2021 REPORT ANNUAL Z ENERGY Pg 3 Pg 2 Z ENERGY ANNUAL REPORT 2021 REPORT ANNUAL In FY22 we will deliver a further Z has the largest network of fuel Z’s changing context $21 million in structural, ongoing cost storage assets in the country and will reductions, building on reductions from introduce terminal gate pricing across The liquid fuels industry is going through FY21. Z will continue to focus on cost the country over the next year. Z expects a period of significant structural change. reduction opportunities as we optimise the efficiency and scale of its national Through our previous investments in our core business and leverage our fuel terminal network to begin to deliver our assets, network and capabilities Z is We are facing scale to ensure a competitive, resilient fair commercial returns from assets well-positioned to lead these changes. business that will sustain returns which have historically underperformed In February 2021, as part of ensuring the future with to shareholders. because of long-standing Z has the right people in the right roles industry arrangements. to respond to a rapidly changing context, Holding market share confidence in our These industry arrangements have the company announced changes to its With a leaner, focused operation, Z backs discouraged investment and encouraged Executive team. itself to deliver convenience, dynamic ability to deliver. companies to rely on the assets of customer offers and competitive pricing Julian Hughes has moved from the others. Z will drive a more independent, across the country. We will preserve and General Manager, Strategy and Risk to a commercial approach to its fuel terminal build on the economies of our scale and new role as General Manager, Transition. management that better serves While work needs to be completed and The Climate Change Commission has compete vigorously in our core markets. In this role Julian will be accountable Conclusion New Zealand’s economic interests. for ensuring Z is well-positioned in a agreements reached, moving to a fuel published and consulted on New Zealand’s We thank our investors, customers and Over the year Z has competed for changing industry, for example through import terminal will generate a one-off first draft pathway to meeting the Managing capital our own people for their commitment volume in all markets and has flattened developing a reliable biofuels supply working capital release of approximately country’s 2030 and 2050 climate change and support over FY21. the decline in its fuel market share. We have a strong balance sheet chain and supporting the transition to $150 million. It may also improve the commitments. We welcomed this work Z has a strong customer proposition: following a well-supported $347 million an import-only supply chain. resilience and security of fuel supply and note that the core scenario in the Our actions over the past three years competitive pricing, a superior network equity capital raise announced in and ensure a fair, competitive playing proposed pathway is closely aligned have ensured we are well-positioned Nicolas Williams has moved from of commercial and retail refuelling May/June 2020. We thank our investors field across all market participants. with Z’s own scenario modelling. to manage through any future the position of General Manager, stations, an increasingly dynamic set for their strong support. Covid-19-like events. We will continue Commercial, to the position of General Discipline in operations In late January, the Government of digitally enabled customer offers, to build resilience in our business and Z used the equity raise proceeds to Manager, Strategy and Risk, reflecting a announced a biofuels sale mandate. a refreshed loyalty programme, and the We will continue to be disciplined in remain focused on creating value for pay down bank debt. Z is committed focus on longer-term business strategy. When implemented, this is expected clear commitment to be a part of the choosing where we want to compete, and shareholders and customers through to paying down $150 million of debt in Nicola Law has moved into the position to create mass demand for low climate change solution. we will exit operations that do not generate ensuring our core business is optimised November of this year, which will see of General Manager, Commercial. emissions fuels for use in existing sufficient returns or provide too much risk. to respond to structural changes in our Monetising scale debt reduced by $330 million over an internal combustion engine vehicles. 18-month period. These changes took effect on 1 April 2021. Over the last year Z ended its charter Biofuel mandates are common globally industry and the global economy. Z’s supply chain objective is to be of the marine fuel oil barge Awanuia and Z has been advocating strongly for a appropriately rewarded for its scale In response to the uncertainty of In addition to the above changes, on FY21 has been a hugely challenging in Auckland Harbour. The business mandate policy across the industry. and resulting efficiency. Covid-19, Z cut its final dividend for FY20 1 February 2021, Z appointed Figen Ulgen year for everyone and the recovery is generated inadequate return and and, as a part of the financing agreement as Chief Customer Officer, following Subject to favourable conditions, just starting. There will be challenging A number of significant changes detracted from the focus on running with our banking partners and debt the departure of Jane Anthony in Z expects to be well-positioned to realise times ahead. But we have made change occurring in New Zealand’s fuel industry the core business safely and profitably. providers, agreed to pause dividend December 2020 after 11 years in senior value from its currently hibernated where change was required and we face may provide opportunities for Z to realise payments to shareholders until after management roles. Over the period Z also moved to a Te Kora Hou biodiesel plant in Wiri, the future with confidence in our ability more value.
Load more

Recommended publications
  • 2014 Annual Report
    Annual ReportAnnual 2014 Annual Report 2014 z.co.nz ANNUAL REPORT 2014 Z ENERGY 1 Welcome to Z’s Annual report for the year ended 31 March 2014 As part of our commitment to being straight up and sharing everything, each year we’ve released an annual review so that everyone can see what we’ve been up to. Now that we’re a listed company, our focus has moved from this being an annual review to an annual report. So what’s in a word? All it means is that there’ve been a few tweaks to ensure we meet our reporting obligations to our 10,000 new shareholders. 2 Z ENERGY ANNUAL REPORT 2014 ANNUAL REPORT 2014 Z ENERGY 3 An introduction with CEO Mike Bennetts And a quick summary of what you can expect in this year’s annual report. Hi, I’m Mike Bennetts, Z’s1 chief executive. Welcome to our 2014 We also continue to talk about our evolution as a brand; a uniquely annual report. This year, we’ve structured the report around Kiwi brand that is very much at the heart of what we do here in our leadership framework. This is how we describe what great New Zealand. leadership looks like inside Z. We talk about our commitment to sustainability, we update you on That’s the sort of leadership that I or anyone in Z brings to our daily our progress, we talk about our customer offers, and we talk about jobs, in what we do personally, or the sort of leadership we bring how we continue to be listening to what customers have to say to the industry.
    [Show full text]
  • 21 June 2018 Chair's Address Z Energy ASM 3 Queen's Wharf Wellington Introduction and Welcome It Is
    21 June 2018 Chair’s address Z Energy ASM 3 Queen’s Wharf Wellington Introduction and welcome It is 3pm - if I could call the meeting to order. Good afternoon and welcome to the 2018 Z Energy annual shareholders meeting. My name is Peter Griffiths and I am Chair of the board of Z Energy. It is my pleasure to welcome you to the Z Shed here in Wellington and also to welcome everyone who is joining us virtually over the internet or by phone. We are very pleased to have so many of you here connected to us today. For those of you in the building, if there is a need to evacuate the building for any reason our alarm will ring and we will exit through these doors, go down the stairs and gather over on the far side of the courtyard in front of us. If there is an earthquake - please drop, cover, and hold and we will follow the wardens’ instructions after the shake. Bathrooms are out the door to my left. We will be using some slides during the meeting. For those of you on line you will be able to see these and follow us along. They will also be on our website. Let me introduce my colleagues on the board. Abby Foote, Julia Raue, Mark Cross , Al Dunn and Steve Reindler. We also of course have Mike Bennetts our CEO here and I can see in the front rows we have other members of the Z leadership team. Our legal advisors from Minter Ellison Rudd Watts and Chapman Tripp are here and our auditors from KPMG are also present.
    [Show full text]
  • The Climate Risk of New Zealand Equities
    The Climate Risk of New Zealand Equities Hamish Kennett Ivan Diaz-Rainey Pallab Biswas Introduction/Overview ØExamine the Climate Risk exposure of New Zealand Equities, specifically NZX50 companies ØMeasuring company Transition Risk through collating firm emission data ØCompany Survey and Emission Descriptives ØPredicting Emission Disclosure ØHypothetical Carbon Liabilities 2 Measuring Transition Risk ØTransition Risk through collating firm emissions ØAimed to collate emissions for all the constituents of the NZX50. ØUnique as our dataset consists of Scope 1, Scope 2, and Scope 3 emissions, ESG scores and Emission Intensities for each firm. ØCarbon Disclosure Project (CDP) reports, Thomson Reuters Asset4, Annual reports, Sustainability reports and Certified Emissions Measurement and Reduction Scheme (CEMAR) reports. Ø86% of the market capitilisation of the NZX50. 9 ØScope 1: Classified as direct GHG emissions from sources that are owned or controlled by the company. ØScope 2: Classified as indirect emissions occurring from the generation of purchased electricity. ØScope 3: Classified as other indirect GHG emissions occurring from the activities of the company, but not from sources owned or controlled by the company. (-./01 23-./014) Ø Emission Intensity = 6789 :1;1<=1 4 Company Survey Responses Did not Email No Response to Email Responded to Email Response Company Company Company Air New Zealand Ltd. The a2 Milk Company Ltd. Arvida Group Ltd. Do not report ANZ Group Ltd. EBOS Ltd. Heartland Group Holdings Ltd. Do not report Argosy Property Ltd. Goodman Property Ltd. Metro Performance Glass Ltd. Do not report Chorus Ltd. Infratil Ltd. Pushpay Holdings Ltd. Do not report Contact Energy Ltd. Investore Property Ltd.
    [Show full text]
  • Corporate Governance Statement FY19
    Z’s corporate governance Corporate Governance Statement FY19 This corporate governance statement is linked to the annual report and is also a standalone document available at Z’s investor centre. This document demonstrates Z’s compliance with the new NZX Corporate Governance Code. It is current as at 31 March 2019 and has been approved by Z’s Board. Other information on the board’s activity this year and plans for next year can be found in the online report. Z considers that, during the reporting period, the company materially complied with the NZX Corporate Governance Code. “Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for standards being followed throughout the organisation.” “The board should document minimum standards of ethical behaviour to which the issuer’s directors and employees are expected to adhere (a code of ethics).” The Code of Conduct is the cornerstone of expected behaviour and company culture at Z and is published on our investor centre. The code applies to all of Z’s people (directors, employees, contractors, and consultants). They are required to read and understand the Code of Conduct and acknowledge that they have done so. Z reviews the Code of Conduct on a 3-year cycle (or as required) to keep it up to date with employee and stakeholder expectations. The document was last reviewed in January 2019. The Code of Conduct requires Z’s people to carry out their roles honestly and diligently and in the best interests of Z, to declare any conflicts of interest, to disclose any gifts over $200, and to ensure any gifts under that value do not compromise them.
    [Show full text]
  • Infratil Monthly Operational Report Introduction Trustpower
    Infratil on Facebook Email not displaying correctly? View it in your browser Infratil Monthly Operational Report 1 July 2011 Introduction Infratil's 2011 Annual Report was released and is available here. The Report provides a record of Infratil's performance over the year to 31 March 2011, its financial position as at 31 March 2011, the strategic factors which are guiding management and a summary of the performance, circumstance and prospects of Infratil's businesses. After almost a quarter of the financial year the main "take out" thus far is that Infratil is tracking to budget with the pluses and minuses roughly in balance. The 4.75cps final dividend was paid in June. 25% of shareholders holding 11% of the shares took advantage of the DRP and 1.4 million shares were issued at $1.87 each. After the DRP issue, Infratil has 604.2 million shares on issue. TrustPower A wet, warm winter has depressed wholesale electricity prices and coincidentally the Electricity Authority has initiated a $10.5 million campaign to encourage consumers to check their power bills to see if they can lower their costs. The Authority reported that approximately 6% of those who checked their bills subsequently initiated a change of retailer. The Authority is funded by a levy on electricity consumption. Over the last year about 30,000 accounts have switched company each month. Over this period TrustPower's customer gains and losses have been in balance with the overall outcome being gains by Pulse, Meridian and Genesis drawn from Contact and Mighty River Power. The temperate winter may be increasing supply and reducing demand (less electricity has been consumed to date in 2011 than for the same period in 2010) resulting in low wholesale prices, but the situation may be analogous to mortgage borrowers with floating rate loans.
    [Show full text]
  • IN the MATTER of Various Appeals to the Proposed Hamilton City District Plan Under Clause 14 of the First Schedule of the Resource Management Act 1991 (The Act) 1
    IN THE MATTER of various appeals to the Proposed Hamilton City District Plan under clause 14 of the First Schedule of the Resource Management Act 1991 (the Act) 1 BEFORE THE ENVIRONMENT COURT Court: Environment Judge M Harland, in Chambers, on the papers Date: 14 July 2015 SIXTH CASE MANAGEMENT MINUTE 2 Introduction [1] Between 29 July 2014 and 4 September 2014, forty-five (45) appeals were filed in respect of various provisions contained in the Hamilton City Proposed District Plan ("PDP"). Thirty-four (34) appeals are extant. Four appeals have been withdrawn,2 and seven appeals have been resolved in their entirety. Consent orders have been made by the Court in relation to the appeals that have been resolved.3 This Minute addresses the extant appeals and records the further directions needed to progress them. Reporting Memorandum [2] In its Fifth Case Management Minute the Court directed that the respondent file and serve a comprehensive reporting memorandum by 6 July 2015, which it has done. [3] The process to progress the appeals is part way through Stage 2, with a number of Court-assisted mediations having occurred and further mediations scheduled to occur by 5 August 2015. There are two topics which need to be included in the 21 July 2015 session and these are outlined below. As well, the memorandum has identified topics where a second and final Court-assisted mediation is considered to be appropriate. [4] The respondent has identified those appeals or topics for which consent documentation need to be prepared, circulated and filed with the Court.
    [Show full text]
  • Z Energy 1QFY22 Operating Data
    19 July 2021 Z Energy quarterly operating data Overview Z Energy (NZX/ASX: ZEL) (“Z”) delivered good volume for 1QFY22 and convenience retail continued its strong performance. Margins for Z were down slightly due to continued rising crude oil prices and mix, with strong volumes in lower margin businesses. Z continues to deliver on its four point plan and reaffirms FY22 RC EBITDAF guidance to be in the range of $270m to $310m with dividends of 19cps to 23cps. Volume Z Retail volumes were up 51.5% for 1QFY22 versus the prior corresponding period (PCP) in FY21, rebounding from last year’s AL3 and AL4 Covid-related lockdowns. Z volumes are in-line with usual seasonality; tracking 0.8% above FY20 volume as Z continues to focus on volume and holding market share. Z Network (Incl Foodstuffs) Volume (ml) 100 80 60 40 20 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY20 FY21 FY22 Caltex retail volumes for petrol and diesel were up 59.5% for 1QFY22 versus FY21 PCP, rebounding from last year’s Covid-related lockdowns. One Caltex site was converted to Z over FY21, adding to the 3 conversions in FY20. The Pumped loyalty program has continued to gain market share with Caltex customers and has been a key driver in arresting the decline in Caltex volumes in 1Q. Caltex Network Volume (ml) 50 40 30 20 10 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY20 FY21 FY22 Commercial ground fuel volumes for 1QFY22 were up 24.7% versus Covid-impacted FY21 PCP and flat against FY20 PCP.
    [Show full text]
  • Devon Webinar August 2019 Australian Housing Market Finding a Floor
    Devon Webinar August 2019 Australian housing market finding a floor This price downturn is now the longest slump on record For the 2 informed Source: UBS investor. Australia reporting season update Reporting season upgrades/downgrades Source: MST For the 3 informed investor. The collapse in bond yields globally since late 2018 has been spectacular Negative yield bonds have surged back to a record …and this time a meaningful share of corporate debt is also share of outstanding debt.. negative yielding For the Source: JP Morgan, Bloomberg Source: Bloomberg, Deutsche Bank 4 informed investor. Negative yields mainly Europe, but sharp falls widespread Genuinely negative yields largely a Euro issue - the entire curve of 4 countries is negative yielding NZ and Australian 10 year bond currently flirting with 1% For the 5 informed Source: JP Morgan; Factset; Devon investor. Parts of the market have seen yields compress aggressively But compression has not generally been as sharp as in bonds, and parts of the market haven’t moved much at all For the 6 Source: Factset; Devon informed investor. Property stocks: bond proxies that have again re-rated Australasian property generally trading well above price-to-book, though some notable exceptions For the 7 Source: Factset; Devon informed investor. Devon Dividend Yield Fund Company Name Country % Fund Assetallocation Contact Energy NZ 6.0 Spark NZ 6.0 NAB AU 5.5 Z Energy NZ 5.0 Meridian NZ 5.0 BHP AU 4.0 URW AU 4.0 Sydney Airport AU 4.0 Scentre Group AU 4.0 Sky City NZ 4.0 KPG NZ 3.5 Genesis Energy NZ 3.0 Rio Tinto AU 3.0 Mercury NZ 3.0 NZ AU Cash Air New Zealand NZ 2.5 For the 8 informed investor.
    [Show full text]
  • 2020 Annual Report 2020
    Ko te mea nui... What matters most... Z ENERGY ANNUAL REPORT For the year ended 31 March 2020 Pg 1 Z ENERGY ANNUAL REPORT 2020 REPORT ANNUAL ...for our customers for our economy for our future To keep New Zealand ... mō tō tātou kiritaki moving mō tō tātou ōhanga mō tō tātou anamata Pg 3 Z ENERGY COVID-19 2020 REPORT ANNUAL AND THIS While any impact on Z in FY20 is limited by the timing of the COVID-19 crisis in New Zealand, we expect there will be material impacts on fuel demand ANNUAL in New Zealand across at least the first half of FY21. Again, there is a high level of uncertainty on this point and we will continue to update the market REPORT as required. The 2020 financial year was a challenging New Zealand economy, to protect people this report, readers should assume our Coinciding with the global spread of There will be challenging times one for Z across many areas of the and to protect shareholders’ interests. short- to medium-term strategic focus, COVID-19, over the last quarter of ahead and difficult decisions to This report is accurate over business. In the last week of our financial including cost and resource allocations, Z’s financial year, the price of crude oil make, but we will not shy away from the relevant reporting period The choices we make around where we year, conditions became markedly more will be driven by our response to COVID-19 dropped by about two-thirds as Russia making them. There will also be – the 12 months to the end of focus our efforts and resources are now challenging, complex and uncertain for the and the commitment for Z to emerge and Saudi Arabia entered an oil price war significant opportunities.
    [Show full text]
  • Australia & New Zealand Report 2018
    DISCLOSURE INSIGHT ACTION Australia & New Zealand Report 2018 On behalf of over 650 investors with US$87 trillion in assets. CDP Report 2018 | Published February 2019 Contents 3 CEO foreword 14 Appendix I List of disclosing companies in Australia & 4 Disclosure in 2018 New Zealand 5 Climate Change: Australia & New 18 Appendix II Zealand insights Responding companies in Australia & New Zealand – supply chain program 9 Water Security: Driving water stewardship 19 Appendix III Non-responding companies in Australia & 10 Forests: Building sustainable New Zealand supply chains 12 CDP Australia & New Zealand Awards 2018 13 Investor Signatories & Members in Australia & New Zealand Important Notice The contents of this report may be used by anyone providing acknowledgement is given to CDP. This does not represent a license to repackage or resell any of the data reported to CDP or the contributing authors and presented in this report. If you intend to repackage or resell any of the contents of this report, you need to obtain express permission from CDP before doing so. CDP has prepared the data and analysis in this report based on responses to the CDP 2018 information request. No representation or warranty (express or implied) is given by CDP as to the accuracy or completeness of the information and opinions contained in this report. You should not act upon the information contained in this publication without obtaining specific professional advice. To the extent permitted by law, CDP does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it.
    [Show full text]
  • Z Energy’S Response to Invitation to Comment on Preliminary Issues
    PUBLIC VERSION MARKET STUDY INTO THE RETAIL FUEL SECTOR: Z ENERGY’S RESPONSE TO INVITATION TO COMMENT ON PRELIMINARY ISSUES 1 This submission sets out Z’s response to the Commerce Commission’s preliminary issues paper on its retail fuel market study.1 2 Z notes the short timeframe for responding to the preliminary issues paper; there is likely to be further information relating to the questions in the preliminary issues paper that Z may wish to present as the market study progresses. 3 This version of the submission is public. Confidential and commercially sensitive information has been redacted. Release of the redacted information would be likely unreasonably to prejudice Z’s commercial position. Please contact us if you receive a request for the information. Questions on our approach to the study Q1 Do you have any comments on our proposed approach to the study, including the scope and areas we intend to consider? Are there any additional areas relevant to the terms of reference that should be considered and may not be captured by our approach? If so, please explain. 4 Z generally supports the scope of the market study, as set out in the preliminary issues paper. 5 Z does have a comment on the scope as described in paragraph 23 of the preliminary issues paper, where the Commission states: We also note that retail fuel prices are affected by several factors including international crude oil prices, movements in the NZ dollar against other currencies (especially the US dollar), and the level of taxes and levies on fuel.
    [Show full text]
  • AIR NEW ZEALAND LTD V BP OIL NEW ZEALAND LTD & ORS [2019]
    IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY COMMERCIAL PANEL I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE CIV-2018-404-000492 [2019] NZHC 1187 BETWEEN AIR NEW ZEALAND LIMITED Plaintiff AND BP OIL NEW ZEALAND LIMITED First Defendant Z ENERGY LIMITED Second Defendant Z ENERGY 2015 LIMITED Third Defendant Hearing: 11-13 March 2019 Appearances: N S Gedye QC and J A MacGillivray for Plaintiff V L Heine, T Smith and R Goss for Defendants Judgment: 28 May 2019 JUDGMENT OF VENNING J This judgment was delivered by me on 28 May 2019 at 3.00 pm, pursuant to Rule 11.5 of the High Court Rules. Registrar/Deputy Registrar Date…………… Solicitors: Tompkins Wake, Hamilton Chapman Tripp, Wellington Counsel: N S Gedye QC, Auckland AIR NEW ZEALAND LTD v BP OIL NEW ZEALAND LTD & ORS [2019] NZHC 1187 [28 May 2019] TABLE OF CONTENTS Introduction [1] Air NZ’s fuel usage [7] The fuel supply chain [9] The “contracts” in issue [14] The pipeline failure [20] Air NZ’s response to the allocations [25] Issues [26] Is there a supply obligation at all? [27] What type of supply obligation is to be implied? [43] The context to the fuel supply agreements [57] The practice of allocation [72] Prior dealings [81] Reasonable and equitable [86] Necessary for business efficacy [98] Obviousness [107] Clear expression [113] No contradiction with express clause [118] Conclusion – implied term [119] Pleading point [120] Has Z satisfied the reasonable endeavours obligation? [123] Frustration [149] Result/orders [160] Costs [163] Introduction [1] Between 16 and 30 September 2017, damage to the fuel pipeline from Marsden Point Refinery to Wiri in Auckland caused a severe disruption to the supply of aviation fuel (Jet A1) to Auckland Airport and affected Air New Zealand Limited’s (Air NZ) operations.
    [Show full text]