ANNUAL REPORT 2021

DIRECTORS' STATEMENT

The Directors are pleased to present the New Zealand Refining Company Limited's Annual Report and Financial Statements for the year ended 31 December 2021. This document should be read together with the Sustainability Report published by the Company. The Annual Report of the New Zealand Refining

Company Limited is signed on behalf of the Board by:

S C Allen Chair

J B Miller Chair, ARFC

28 March 2022

CONTENTS

  • 2 Directors' Statement

  • 4 2021 Key Priorities & Highlights

  • 6 Chair and CEO's Statement

  • 9 Governance at Refining NZ

  • 12 Remuneration and People Report

  • 18 Board of Directors

  • 19 Corporate Lead Team

  • 20 Shareholder and Bondholder Information

  • 24 Statutory Disclosures

  • 26 Consolidated Financial Statements

  • 76 Independent Auditors' Report

  • 80 Trend Statement

  • 83 Glossary

  • 84 Corporate Directory

2021 KEY PRIORITIES & HIGHLIGHTS

SAFE, RELIABLE AND COMPLIANT OPERATIONS THROUGHOUTTURNAROUND EXECUTED SAFELY, ON TIME AND WITHIN BUDGETMAINTAIN CASH BREAKEVEN OPERATIONS AT THE FEE FLOORCONCLUDE IMPORT TERMINAL NEGOTIATIONS WITH CUSTOMERSPROGRESS REQUIRED SHAREHOLDER AND LENDER APPROVALS AND DETAILED PLANNING

0

RECORDABLE PERSONAL SAFETY INCIDENTS (2020 0)

13.4

MBBL

RAP THROUGHPUT (2020 14.7)

GRM 3.73

(2020 1.63)

10 YEAR

USD/BBL

TSA'S WITH TAKE OR PAY COMMITMENTS, PPI INDEXATION OF ALL FEES

99%

SHAREHOLDERS VOTING IN SUPPORT

  • 1 Operating costs excluding natural gas and other pass throughs.

  • 2 Core ITS fees are expected to average $95million per annum (real) across the initial 10-year term.

  • 3 Private storage fees are expected to average $9 million peer annum (real) across the initial 10-year term.

Refining NZ maintained excellent safety and operational performance through the Strategic Review and on-going COVID-19 impacts.

2

TIER I AND II SAFETY INCIDENTS (2020 0)

10

RELEASES OUTSIDE OF CONSENT (2020 5)

No recordable personal safety incidents in over two years

Process safety incidents responded to quickly, with no significant damage to plant

29.2

MBBL

REFINERY THROUGHOUT (2020 29.9)

Lower throughput reflects a $33.4Msimplified refinery operations andCOVID-19 demand impacts

CAPITAL EXPENDITURE (2020 $33.9M)

Turnaround included first statutory inspection of the CCR

C.30%

OPERATING COSTS1 VS 2019

$184MStrategic Review costs

NET DEBT (2020 $231M)

Cash neutral at the fee floor, including turnaround andSuccessful $47 million equity raise to fund private storage growth

180ML

SHARED IMPORT TERMINAL CAPACITY (EST. REVENUE: $952 MILLION P.A.)

c.100ML

PRIVATE STORAGE CONTRACTED (EST REVENUE: $93 MILLION P.A.)

Terminal Services Agreements signed with bp, Mobil and Z

Additional private storage capacity contracted

FROM

APRIL 2022 $1.33

TRANSITION TO AN IMPORT TERMINALNET ASSETS PER SHARE (2020 $1.51)

Lender and shareholder consent and conversion funding secured

Final investment decision taken

Impacts of conversion reflected in FY21 financial statements

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Disclaimer

The New Zealand Refining Company Limited published this content on 30 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2022 22:55:15 UTC.