Loading...

We've got a brand new version of Simply Wall St! Try it out

New Zealand Refining

NZSE:NZR
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NZR
NZSE
NZ$659M
Market Cap
  1. Home
  2. NZ
  3. Energy
Company description

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 last earnings update was 176 days ago. More info.


Add to Portfolio Compare Print
NZR Share Price and Events
7 Day Returns
-0.9%
NZSE:NZR
-4.3%
Oceania Oil and Gas
-2.4%
NZ Market
1 Year Returns
-16.3%
NZSE:NZR
-17.5%
Oceania Oil and Gas
10.9%
NZ Market
NZR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
New Zealand Refining (NZR) -0.9% -2.3% 1.4% -16.3% -17.3% 27.3%
Oceania Oil and Gas -4.3% -6.7% -11.7% -17.5% 7.2% -39.3%
NZ Market -2.4% -0.5% 3.5% 10.9% 22.6% 56.1%
1 Year Return vs Industry and Market
  • NZR outperformed the Oil and Gas industry which returned -17.5% over the past year.
  • NZR underperformed the Market in New Zealand which returned 10.9% over the past year.
Price Volatility
NZR
Industry
5yr Volatility vs Market

Value

 Is New Zealand Refining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of New Zealand Refining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for New Zealand Refining.

NZSE:NZR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:NZR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.9 (1 + (1- 28%) (40.67%))
1.11
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.11 * 5.96%)
8.98%

Discounted Cash Flow Calculation for NZSE:NZR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for New Zealand Refining is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NZSE:NZR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 8.98%)
2020 88.00 Analyst x1 80.75
2021 116.00 Analyst x1 97.67
2022 139.13 Est @ 19.94% 107.48
2023 159.54 Est @ 14.67% 113.09
2024 177.05 Est @ 10.98% 115.16
2025 191.92 Est @ 8.4% 114.54
2026 204.56 Est @ 6.59% 112.03
2027 215.45 Est @ 5.32% 108.26
2028 225.01 Est @ 4.44% 103.75
2029 233.60 Est @ 3.82% 98.83
Present value of next 10 years cash flows NZ$1,051.56
NZSE:NZR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$233.60 × (1 + 2.37%) ÷ (8.98% – 2.37%)
NZ$3,616.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$3,616.22 ÷ (1 + 8.98%)10
NZ$1,529.93
NZSE:NZR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$1,051.56 + NZ$1,529.93
NZ$2,581.49
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$2,581.49 / 312.20
NZ$8.27
NZSE:NZR Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$8.27
Current discount Discount to share price of NZ$2.10
= -1 x (NZ$2.10 - NZ$8.27) / NZ$8.27
74.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price New Zealand Refining is available for.
Intrinsic value
>50%
Share price is NZ$2.1 vs Future cash flow value of NZ$8.27
Current Discount Checks
For New Zealand Refining to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • New Zealand Refining's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • New Zealand Refining's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for New Zealand Refining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are New Zealand Refining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:NZR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.09
NZSE:NZR Share Price ** NZSE (2019-08-16) in NZD NZ$2.1
Oceania Oil and Gas Industry PE Ratio Median Figure of 26 Publicly-Listed Oil and Gas Companies 7.27x
New Zealand Market PE Ratio Median Figure of 89 Publicly-Listed Companies 18.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of New Zealand Refining.

NZSE:NZR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:NZR Share Price ÷ EPS (both in NZD)

= 2.1 ÷ 0.09

22.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Zealand Refining is overvalued based on earnings compared to the Oceania Oil and Gas industry average.
  • New Zealand Refining is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does New Zealand Refining's expected growth come at a high price?
Raw Data
NZSE:NZR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
29.1%per year
Oceania Oil and Gas Industry PEG Ratio Median Figure of 19 Publicly-Listed Oil and Gas Companies -0.01x
New Zealand Market PEG Ratio Median Figure of 64 Publicly-Listed Companies 1.62x

*Line of best fit is calculated by linear regression .

NZSE:NZR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.14x ÷ 29.1%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Zealand Refining is good value based on expected growth next year.
Price based on value of assets
What value do investors place on New Zealand Refining's assets?
Raw Data
NZSE:NZR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$2.47
NZSE:NZR Share Price * NZSE (2019-08-16) in NZD NZ$2.1
Oceania Oil and Gas Industry PB Ratio Median Figure of 148 Publicly-Listed Oil and Gas Companies 1.16x
New Zealand Market PB Ratio Median Figure of 127 Publicly-Listed Companies 1.61x
NZSE:NZR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:NZR Share Price ÷ Book Value per Share (both in NZD)

= 2.1 ÷ 2.47

0.85x

* Primary Listing of New Zealand Refining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Zealand Refining is good value based on assets compared to the Oceania Oil and Gas industry average.
X
Value checks
We assess New Zealand Refining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. New Zealand Refining has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is New Zealand Refining expected to grow at an attractive rate?
  • New Zealand Refining's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • New Zealand Refining's earnings growth is expected to exceed the New Zealand market average.
  • New Zealand Refining's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:NZR Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:NZR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 29.1%
NZSE:NZR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 7.2%
Oceania Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
Oceania Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 3%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 8%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:NZR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:NZR Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 496 120 1
2021-12-31 435 200 73 3
2020-12-31 416 172 60 3
2019-12-31 375 143 38 3
NZSE:NZR Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 361 105 30
2018-09-30 365 129 35
2018-06-30 368 154 41
2018-03-31 390 176 60
2017-12-31 412 198 79
2017-09-30 400 190 75
2017-06-30 389 183 71
2017-03-31 372 155 59
2016-12-31 354 128 47
2016-09-30 376 150 72
2016-06-30 399 172 97
2016-03-31 423 218 124

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • New Zealand Refining's earnings are expected to grow significantly at over 20% yearly.
  • New Zealand Refining's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:NZR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from New Zealand Refining Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:NZR Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.38 0.38 0.38 1.00
2021-12-31 0.26 0.35 0.17 2.00
2020-12-31 0.19 0.22 0.17 3.00
2019-12-31 0.12 0.12 0.12 2.00
NZSE:NZR Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.09
2018-09-30 0.11
2018-06-30 0.13
2018-03-31 0.19
2017-12-31 0.25
2017-09-30 0.24
2017-06-30 0.23
2017-03-31 0.19
2016-12-31 0.15
2016-09-30 0.23
2016-06-30 0.31
2016-03-31 0.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • New Zealand Refining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess New Zealand Refining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
New Zealand Refining has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare New Zealand Refining's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • New Zealand Refining's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • New Zealand Refining's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • New Zealand Refining's 1-year earnings growth is negative, it can't be compared to the Oceania Oil and Gas industry average.
Earnings and Revenue History
New Zealand Refining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from New Zealand Refining Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:NZR Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 361.37 29.62 99.68
2018-09-30 364.78 35.07 98.61
2018-06-30 368.19 40.52 97.55
2018-03-31 389.95 59.52 95.22
2017-12-31 411.72 78.53 92.88
2017-09-30 400.43 74.73 91.19
2017-06-30 389.15 70.92 89.50
2017-03-31 371.65 59.05 90.16
2016-12-31 354.16 47.18 90.83
2016-09-30 376.35 72.07 88.44
2016-06-30 398.54 96.97 86.05
2016-03-31 422.64 123.87 82.41
2015-12-31 446.75 150.77 78.77
2015-09-30 394.90 116.46 76.38
2015-06-30 343.04 82.15 74.00
2015-03-31 287.33 46.05 72.61
2014-12-31 231.62 9.94 71.21
2014-09-30 210.40 -3.63 72.11
2014-06-30 189.17 -17.20 73.01
2014-03-31 206.18 -11.10 75.15
2013-12-31 223.20 -5.01 77.29
2013-09-30 257.43 16.77 77.54
2013-06-30 291.65 38.55 77.78
2013-03-31 285.08 34.75 76.46
2012-12-31 278.51 30.95 75.13
2012-09-30 262.52 16.35 73.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • New Zealand Refining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • New Zealand Refining used its assets less efficiently than the Oceania Oil and Gas industry average last year based on Return on Assets.
  • New Zealand Refining's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess New Zealand Refining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
New Zealand Refining has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is New Zealand Refining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up New Zealand Refining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • New Zealand Refining's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • New Zealand Refining's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of New Zealand Refining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from New Zealand Refining Company Filings, last reported 7 months ago.

NZSE:NZR Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 769.64 265.47 7.02
2018-09-30 769.64 265.47 7.02
2018-06-30 751.54 272.00 6.80
2018-03-31 751.54 272.00 6.80
2017-12-31 792.78 179.62 18.29
2017-09-30 792.78 179.62 18.29
2017-06-30 765.49 215.48 7.49
2017-03-31 765.49 215.48 7.49
2016-12-31 752.20 230.32 1.68
2016-09-30 752.20 230.32 1.68
2016-06-30 711.55 296.57 0.94
2016-03-31 711.55 296.57 0.94
2015-12-31 782.20 210.42 7.57
2015-09-30 782.20 210.42 7.57
2015-06-30 712.93 278.53 1.91
2015-03-31 712.93 278.53 1.91
2014-12-31 644.68 321.01 1.02
2014-09-30 644.68 321.01 1.02
2014-06-30 636.78 285.50 0.61
2014-03-31 636.78 285.50 0.61
2013-12-31 591.10 228.00 0.33
2013-09-30 591.10 228.00 0.33
2013-06-30 598.69 122.00 0.51
2013-03-31 598.69 122.00 0.51
2012-12-31 588.45 62.01 1.19
2012-09-30 572.16 62.01 1.19
  • New Zealand Refining's level of debt (34.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (38.6% vs 34.5% today).
  • Debt is well covered by operating cash flow (39.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess New Zealand Refining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. New Zealand Refining has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.57%
Current annual income from New Zealand Refining dividends. Estimated to be 8.75% next year.
If you bought NZ$2,000 of New Zealand Refining shares you are expected to receive NZ$71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • New Zealand Refining's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.26%).
  • New Zealand Refining's dividend is below the markets top 25% of dividend payers in New Zealand (5.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:NZR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Oceania Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 4.7%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 72 Stocks 3.6%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.3%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:NZR Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.34 1.00
2021-12-31 0.23 3.00
2020-12-31 0.18 3.00
2019-12-31 0.09 3.00
NZSE:NZR Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-02-22 0.075 3.615
2018-02-28 0.180 7.459
2017-08-28 0.120 4.760
2017-02-28 0.090 3.672
2016-02-24 0.400 15.216
2015-08-20 0.100 2.841
2015-02-20 0.000 0.000
2014-08-21 0.000 0.000
2014-02-27 0.000 0.000
2013-08-22 0.070 3.192
2013-03-14 0.070 3.076
2012-08-23 0.110 4.108
2012-02-21 0.120 4.550
2011-02-17 0.120 3.408
2010-08-17 0.040 1.036
2010-02-16 0.000 0.000
2009-08-18 0.000 0.000
2009-02-17 0.386 6.494

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of New Zealand Refining's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess New Zealand Refining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can New Zealand Refining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. New Zealand Refining has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of New Zealand Refining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Fuge
COMPENSATION NZ$1,144,296
TENURE AS CEO 1 years
CEO Bio

Mr. Michael Fuge, also known as Mike, M. Com. (Hons), B.Eng. (Hons), MIPENZ, serves as Chief Executive Officer at The New Zealand Refining Company Limited since August 2018. Mr. Fuge served as the Chief Executive Officer at Pacific Hydro Pty Ltd since July 2014 until 2018 and served as its Executive Director from January 29, 2016 to 2018. Mr. Fuge served as an Acting General Manager of Retail at Genesis Energy Limited since May 8, 2014. Mr. Fuge served as the Chief Operating Officer at Genesis Energy Limited from September 2011 to May 8, 2014. Mr. Fuge joined Genesis Energy in early September 2011. He served as General Manager of Client Delivery at Gen-i Limited for 3 years. His experience includes international operations management, along with change management, planning, strategy and major project delivery at a senior level. Originally from New Zealand, he joined Gen-i in 2008 from the Royal Dutch Shell Group with assignments in New Zealand, UK, Middle East and Southeast Asia over 19 years. He spent a significant part of his career in general management roles in the oil and gas industry with Shell in Europe, the Middle East and South East Asia, including roles as General Manager Operations Brunei and Transformation Manager for Petroleum Development Oman in Oman. Mr. Fuge has a Bachelor of Engineering (Hons) and Masters of Commerce (Hons) from Canterbury University.

CEO Compensation
  • Insufficient data for Mike to compare compensation growth.
  • Mike's remuneration is higher than average for companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the New Zealand Refining management team in years:

3.6
Average Tenure
  • The tenure for the New Zealand Refining management team is about average.
Management Team

Mike Fuge

TITLE
Chief Executive Officer
COMPENSATION
NZ$1M
TENURE
1 yrs

Denise Jensen

TITLE
CFO & Company Secretary
TENURE
10.6 yrs

Greg McNeill

TITLE
Communications & External Affairs Manager

Joe Akari

TITLE
Chief People & Capability Officer
TENURE
3.6 yrs

Julian Young

TITLE
Chief Development Officer
Board of Directors Tenure

Average tenure of the New Zealand Refining board of directors in years:

2.3
Average Tenure
  • The average tenure for the New Zealand Refining board of directors is less than 3 years, this suggests a new board.
Board of Directors

Simon Allen

TITLE
Chairman
COMPENSATION
NZ$180K
AGE
61
TENURE
4.3 yrs

Vanessa Cynthia Stoddart

TITLE
Independent Director
COMPENSATION
NZ$115K
AGE
48
TENURE
6.3 yrs

Paul Zealand

TITLE
Independent Director
COMPENSATION
NZ$123K
TENURE
3 yrs

James Miller

TITLE
Independent Director
TENURE
0.8 yrs

Riccardo Cavallo

TITLE
Director
COMPENSATION
NZ$75K
TENURE
2.3 yrs

Deborah Boffa

TITLE
Director
COMPENSATION
NZ$75K
TENURE
2 yrs

Lindis Jones

TITLE
Director
COMPENSATION
NZ$59K
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess New Zealand Refining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. New Zealand Refining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Can The New Zealand Refining Company Limited (NZSE:NZR) Improve Its Returns?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for New Zealand Refining: 3.8% = NZ$30m ÷ NZ$770m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does New Zealand Refining Have A Good Return On Equity? … New Zealand Refining's Debt And Its 3.8% ROE Although New Zealand Refining does use debt, its debt to equity ratio of 0.35 is still low.

Simply Wall St -

How Many The New Zealand Refining Company Limited (NZSE:NZR) Shares Do Institutions Own?

The big shareholder groups in The New Zealand Refining Company Limited (NZSE:NZR) have power over the company. … Insider Ownership Of New Zealand Refining The definition of company insiders can be subjective, and does vary between jurisdictions. … Our most recent data indicates that insiders own less than 1% of The New Zealand Refining Company Limited.

Simply Wall St -

New Zealand Refining (NZSE:NZR) Has A Somewhat Strained Balance Sheet

We note that The New Zealand Refining Company Limited (NZSE:NZR) does have debt on its balance sheet. … NZSE:NZR Historical Debt, July 16th 2019 How Strong Is New Zealand Refining's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching New Zealand Refining's balance sheet over time.

Simply Wall St -

Read This Before Buying The New Zealand Refining Company Limited (NZSE:NZR) For Its Dividend

Is The New Zealand Refining Company Limited (NZSE:NZR) a good dividend stock? … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see New Zealand Refining has grown its earnings per share at 15% per annum over the past five years. Earnings per share are growing nicely, but the company is paying out most of its earnings as dividends. This might be sustainable, but we wonder why New Zealand Refining is not retaining those earnings to reinvest in growth. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than New Zealand Refining out there.

Simply Wall St -

What Should Investors Know About The New Zealand Refining Company Limited's (NZSE:NZR) Earnings Trajectory?

The most recent earnings release The New Zealand Refining Company Limited's (NZSE:NZR) announced in February 2019 signalled that the business experienced a immense headwind with earnings deteriorating by -62%. … Below, I've presented key growth figures on how market analysts view New Zealand Refining's earnings growth trajectory over the next few years and whether the future looks brighter. … NZSE:NZR Past and Future Earnings, June 24th 2019 Even though it is useful to be aware of the growth rate year by year relative to today’s figure, it may be more insightful estimating the rate at which the earnings are growing every year, on average.

Simply Wall St -

Why The New Zealand Refining Company Limited’s (NZSE:NZR) Return On Capital Employed Might Be A Concern

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for New Zealand Refining: 0.046 = NZ$54m ÷ (NZ$1.4b - NZ$214m) (Based on the trailing twelve months to December 2018.) So, New Zealand Refining has an ROCE of 4.6%. … How New Zealand Refining's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

If You Had Bought New Zealand Refining (NZSE:NZR) Stock Three Years Ago, You'd Be Sitting On A 25% Loss, Today

Unfortunately, that's been the case for longer term The New Zealand Refining Company Limited (NZSE:NZR) shareholders, since the share price is down 25% in the last three years, falling well short of the market return of around 45%. … View our latest analysis for New Zealand Refining While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Brief Commentary On The New Zealand Refining Company Limited's (NZSE:NZR) Fundamentals

The New Zealand Refining Company Limited (NZSE:NZR) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … company with a

Simply Wall St -

Can We See Significant Institutional Ownership On The The New Zealand Refining Company Limited (NZSE:NZR) Share Register?

Every investor in The New Zealand Refining Company Limited (NZSE:NZR) should be aware of the most powerful shareholder groups. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of NZ$649m, New Zealand Refining is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Our Take On The New Zealand Refining Company Limited's (NZSE:NZR) CEO Salary

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mike Fuge's Compensation Compare With Similar Sized Companies. … According to our data, The New Zealand Refining Company Limited has a market capitalization of NZ$649m, and pays its CEO total annual compensation worth NZ$1.1m.

Simply Wall St -

Company Info

Description

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 Refining, Distribution, and Other segments. It produces petrol, diesel, aviation fuel, kerosene, fuel oils, and bitumen, as well as offers specialized fuels, biofuels, and industrial and environmental laboratory testing services. The company also owns and operates a 160-kilometre pipeline that transports refined fuels running from the refinery at Marsden Point to Wiri located in South Auckland. The New Zealand Refining Company Limited was founded in 1961 and is based in Whangarei, New Zealand.

Details
Name: The New Zealand Refining Company Limited
NZR
Exchange: NZSE
Founded: 1961
NZ$658,743,276
312,200,605
Website: http://www.refiningnz.com
Address: The New Zealand Refining Company Limited
Private Bag 9024,
Whangarei,
0148,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE NZR Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
OTCPK NZRF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
Number of employees
Current staff
Staff numbers
500
New Zealand Refining employees.
Industry
Oil and Gas Refining and Marketing
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 10:32
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/30
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.