Z Is One of Three Vertically Integrated Participants in New Zealand's Downstream Fuel Market. Operations Span Crude Oil and R

Z Is One of Three Vertically Integrated Participants in New Zealand's Downstream Fuel Market. Operations Span Crude Oil and R

Fact Sheet 2018 Z Energy Ltd (NZX: ZEL) Z is one of three vertically integrated participants in New Zealand’s downstream fuel market. Operations span crude oil and refined product procurement, contracted refining, national distribution and commercial and retail marketing. Along with our 15% ownership in Market Share FY18 Sales by product Type NZR and 50% ownership of COLL we own 11 terminals providing 276 million litres terminal capacity across NZ. We own or service 159 truck stops 55% 1090 1150 under the Z and Caltex brands as well as 204 Z branded retail sites and wholesale supplying 147 26% 1584 1644 independently owned and operated 625 626 Caltex retail sites. We import ~21% 19% 823 million barrels of crude and refined 820 1410 1351 product each year and we supply 861 802 ~45% of all transport fuels in NZL: petrol, diesel, jet fuel, bitumen, fuel oil. Z Caltex Others Petrol Diesel Other Optimizing margin and volume RC Gross Margin RC EBITDAF ($m) throughout the business is a key focus of management. The market demand for transport fuel is 77 largely driven by changes in population 58 69 76 and economic growth, partially offset by technological advances in fuel efficiency. 32 48 61 64 In the long term alternative forms of 449 energy, like electric or hydrogen, will 661 685 398 affect demand for our core product in 470 479 251 261 passenger vehicles and light commercial vehicles. We do not see the same level of substitution occurring in commercial transport. RC Fuels Non-fuels Refining Margin Margin Margin RC EBITDAF Factors specific to Z Energy have contributed to our margin uplift relative to the increase in overall industry margins. Since 2013 we have actively rebalanced our commercial portfolio for higher returns. We have negotiated more competitive procurement and supply agreements as well as not matching the level of industry discounting and increasing our non-fuel margins through increased focus on coffee / food and store refurbishments. Net Profit after Tax $(m) Debt and capital allocation Z’s strategic shift from being asset-led to capability-led means that we will limit the base of capital employed in the core business. Z estimates that we need to spend around $40mill per annum ‘integrity’ capex for the tanks and pipes we own 263 243 to ensure a safe operating environment. To fund ongoing growth, investment capital 205 176 must come through churning the least productive assets and funding our own growth 121 123 capex. At the time of the Caltex acquisition our debt to EBITDA ratio was 2.6x with 64 our stated aim to have reduced debt to 1.6x Debt/EBITDA by the end of 2021. 7 RC NPAT HC NPAT Dividend Policy Net operating cash flow ($m) Dividend (cents per share) At Z Energy we have a pretty simple view on dividends: better with you than with us. The Board of Z Energy announced a new dividend policy 21.9 in September 2017. Subject to Z’s 19.9 395 18.1 performance and other relevant factors, 16.5 the Directors expect to pay a dividend of 80 – 100 percent of underlying 255 182 free cash flow, after debt principle 127 10.4 repayments. Since listing in August 7.7 8.5 9.4 2013, Z has paid cash dividends of $448 million. Net operating cash flow Interim Dividend Final Dividend relentlessly focus on four matters: credible and capable management team Governance context, strategy, risk, and assurance. with significant international experience Z is committed to the highest standards With the aim to better understand and test in downstream petroleum with a breadth of corporate governance and to ensuring our assumptions about Z’s future strategic of international and domestic experience diversity, within the board and the options. Our board is entirely comprised of in all segments of the supply chain. leadership of Z. Z’s board believes it should non-executive directors and leads a highly Our Board of Directors Peter Griffiths Mark Cross Alan Dunn Abbey Foote Chairman Independent Director Independent Director Independent Director Blair O’Keffe Julia Raue Stephen Reindler Independent Director Independent Director Independent Director Our Executive Team Mike Bennetts Chris Day Jane Anthony Dave Binnie CEO CFO GM Marketing GM Supply Mark Forsyth Julian Hughes Lindis Jones Helen Sedecole Meredith Usher Nicholas Williams GM Retail GM HSSE GM Corporate GM People & Culture General Counsel GM Commercial Investor Relations Contact Registered Company Office Shareholder support Nicola Law 3 Queen’s Wharf View or update your holdings and other Corporate Communications and Investor Wellington investor details on the website of our Registry, Relations Manager New Zealand Link Market Services: P: 04 498 0303 www.z.co.nz www.linkmarketservices.co.nz E: [email protected] www.investor-centre.z.co.nz Alternatively, contact our Registry at: Postal address Z Energy Share Information Link Market Services PO Box 2091 PO Box 91976 (as at 31 March 2018) Wellington 6140 Auckland 1142 New Zealand NZX Main Board Code: ZEL New Zealand ASX Code: ZEL P: +64 9 375 5998 Shares on issue: 400,000,000 E: [email protected] Financial year-end: March 31 Indices: NZX10, NZX50, SPNZX50 .

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