NZSE:NZR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

New Zealand Refining

Executive Summary

The New Zealand Refining Company Limited, together with its subsidiaries, engages in the refining of crude oil and supply of refined petroleum products in New Zealand. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has New Zealand Refining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NZR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

NZR

-2.0%

NZ Oil and Gas

-1.2%

NZ Market


1 Year Return

-72.5%

NZR

-40.5%

NZ Oil and Gas

6.9%

NZ Market

Return vs Industry: NZR underperformed the NZ Oil and Gas industry which returned -40.5% over the past year.

Return vs Market: NZR underperformed the NZ Market which returned 6.9% over the past year.


Shareholder returns

NZRIndustryMarket
7 Day1.8%-2.0%-1.2%
30 Day-8.2%-1.6%4.7%
90 Day-22.2%-7.0%6.7%
1 Year-72.5%-72.5%-38.1%-40.5%11.2%6.9%
3 Year-75.1%-77.7%-28.1%-35.7%45.6%26.6%
5 Year-78.8%-83.5%-21.4%-33.8%97.9%49.9%

Price Volatility Vs. Market

How volatile is New Zealand Refining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Zealand Refining undervalued compared to its fair value and its price relative to the market?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NZR (NZ$0.56) is trading above our estimate of fair value (NZ$0.08)

Significantly Below Fair Value: NZR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NZR is unprofitable, so we can't compare its PE Ratio to the XO Oil and Gas industry average.

PE vs Market: NZR is unprofitable, so we can't compare its PE Ratio to the NZ market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NZR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NZR is good value based on its PB Ratio (0.3x) compared to the XO Oil and Gas industry average (1.5x).


Next Steps

Future Growth

How is New Zealand Refining forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

82.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NZR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NZR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NZR's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: NZR's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has New Zealand Refining performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZR is currently unprofitable.

Growing Profit Margin: NZR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NZR is unprofitable, and losses have increased over the past 5 years at a rate of 53% per year.

Accelerating Growth: Unable to compare NZR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NZR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-44.9%).


Return on Equity

High ROE: NZR has a negative Return on Equity (-32.18%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Zealand Refining's financial position?


Financial Position Analysis

Short Term Liabilities: NZR's short term assets (NZ$162.8M) exceed its short term liabilities (NZ$152.1M).

Long Term Liabilities: NZR's short term assets (NZ$162.8M) do not cover its long term liabilities (NZ$416.7M).


Debt to Equity History and Analysis

Debt Level: NZR's debt to equity ratio (50.3%) is considered high.

Reducing Debt: NZR's debt to equity ratio has increased from 38.8% to 50.3% over the past 5 years.

Debt Coverage: NZR's debt is well covered by operating cash flow (29.6%).

Interest Coverage: Insufficient data to determine if NZR's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is New Zealand Refining current dividend yield, its reliability and sustainability?

1.59%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NZR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NZR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NZR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NZR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NZR is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NZR's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Naomi James (42 yo)

0.50

Tenure

Ms. Naomi M. James, LLB (Hons), MLM, serves as Chief Executive Officer at The New Zealand Refining Company Limited since April 2020. She served as Executive Vice President of Midstream Infrastructure and E ...


Leadership Team

NamePositionTenureCompensationOwnership
Naomi James
Chief Executive Officer0.50yrno datano data
Denise Jensen
Chief Financial Officer11.75yrsno data0.0053%
NZ$ 9.0k
Andrew Brewer
Chief Operating Officer0.75yrno datano data
Jack Stewart
Chief Operating Officerno datano datano data
Chris Bougen
General Counsel & Company Secretary0.33yrno datano data
Joe Akari
Chief People & Capability Officer4.75yrsno datano data
Jarek Dobrowolski
Financial Controllerno datano datano data

0.8yrs

Average Tenure

Experienced Management: NZR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Simon Allen
Independent Chairman5.5yrsNZ$180.00k0.011%
NZ$ 18.9k
Paul Zealand
Director4.17yrsNZ$122.50kno data
Vanessa Cynthia Stoddart
Independent Director7.42yrsNZ$115.00kno data
James Miller
Independent Director1.92yrsNZ$122.08k0.0074%
NZ$ 12.4k
Lindis Jones
Director2.58yrsNZ$84.04kno data
Riccardo Cavallo
Director3.5yrsNZ$75.00kno data
Deborah Boffa
Director3.17yrsNZ$78.62kno data

3.5yrs

Average Tenure

Experienced Board: NZR's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The New Zealand Refining Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The New Zealand Refining Company Limited
  • Ticker: NZR
  • Exchange: NZSE
  • Founded: 1961
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: NZ$168.645m
  • Shares outstanding: 312.31m
  • Website: https://www.refiningnz.com

Number of Employees


Location

  • The New Zealand Refining Company Limited
  • Port Marsden Highway
  • Ruakaka
  • Whangarei
  • 171
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZRNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
NZRF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

The New Zealand Refining Company Limited, together with its subsidiaries, engages in the refining of crude oil and supply of refined petroleum products in New Zealand. The company operates through Oil Refi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:36
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.