This is $20m up from the previous financial year
The nation's biggest fuel retailer, Z Energy has posted a $263 million profit for the 12 months ended March 31, 2018, which is up $20m from the previous financial year. This marks a historical high for the company. Overall revenue for the company increased from $26m to $449m.
In the 2019 financial year, the company is forecasting replacement cost ebitdaf between $450m and $485m and $60m in capital expenditure, said Chief executive Mike Bennetts. Bennetts also added that the company is expecting to pay a 2019 dividend of between 50 cents and 55 cents, equivalent to between 90 per cent and 100 per cent of free cash flow, if it hits the midpoint of that guidance.
A full-year dividend of 21.9 cents, up from 19.9 cents in 2017, bringing total dividends for 2018 to 32.3 cents was declared by the board.
A leaked email from BP had recently brought the fuel industry under fire, which revealed the company's pricing tactics and which also mentioned Z Energy.
Details of plans by BP pricing manager Suzanne Lucas to counter dwindling sales in Ōtaki, where the price of fuel was 20 cents more expensive than in nearby town Levin were contained in the email.
After a report by three independent economic consultancies for the Ministry of Business, Innovation and Employment (MBIE) released last July found New Zealand's fuel market may not be competitive, with retail margins increasing over the past five years has resulted in the industry being already scrutinized.
Z says fuel demand is tracking above the more optimistic scenarios developed by the BusinessNZ Energy Council, looking at the long term. PWKD04052018