NZSE:NZR

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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.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.

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

0%

NZR

-0.04%

NZ Oil and Gas

1.3%

NZ Market


1 Year Return

-66.5%

NZR

-32.0%

NZ Oil and Gas

2.7%

NZ Market

Return vs Industry: NZR underperformed the NZ Oil and Gas industry which returned -32% over the past year.

Return vs Market: NZR underperformed the NZ Market which returned 2.7% over the past year.


Shareholder returns

NZRIndustryMarket
7 Day0%-0.04%1.3%
30 Day-6.6%-2.3%1.4%
90 Day-19.3%2.2%10.1%
1 Year-66.1%-66.5%-29.1%-32.0%7.5%2.7%
3 Year-67.6%-71.8%-15.8%-25.0%41.1%20.1%
5 Year-69.0%-76.3%-20.8%-35.3%93.9%42.7%

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?

53.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZR (NZ$0.71) is trading above our estimate of fair value (NZ$0.24)

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


Price To Earnings Ratio

PE vs Industry: NZR is poor value based on its PE Ratio (53.2x) compared to the XO Oil and Gas industry average (10.4x).

PE vs Market: NZR is poor value based on its PE Ratio (53.2x) compared to the NZ market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: NZR is poor value based on its PEG Ratio (2.3x)


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 (1.1x).


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?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZR's forecast earnings growth (23.5% per year) is above the savings rate (2.6%).

Earnings vs Market: NZR's earnings (23.5% per year) are forecast to grow faster than the NZ market (7.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NZR's revenue (2.6% per year) is forecast to grow slower than the NZ market (5.6% per year).

High Growth Revenue: NZR's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZR's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

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

-23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZR has a large one-off gain of NZ$2.1M impacting its December 31 2019 financial results.

Growing Profit Margin: NZR's current net profit margins (1.2%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: NZR's earnings have declined by 23.3% per year over the past 5 years.

Accelerating Growth: NZR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NZR had negative earnings growth (-85.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (-16%).


Return on Equity

High ROE: NZR's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is New Zealand Refining's financial position?


Financial Position Analysis

Short Term Liabilities: NZR's short term assets (NZ$164.0M) do not cover its short term liabilities (NZ$183.1M).

Long Term Liabilities: NZR's short term assets (NZ$164.0M) do not cover its long term liabilities (NZ$441.2M).


Debt to Equity History and Analysis

Debt Level: NZR's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: NZR's debt to equity ratio has reduced from 49.7% to 33.1% over the past 5 years.

Debt Coverage: NZR's debt is well covered by operating cash flow (46.8%).

Interest Coverage: NZR's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.41%

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?

0.5yrs

Average management tenure


CEO

Naomi James (42 yo)

0.33

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
Paul Zealand
MD & Director4yrsNZ$122.50kno data
Naomi James
Chief Executive Officer0.33yrno datano data
Denise Jensen
CFO & Company Secretary11.58yrsno data0.0053%
NZ$ 12.0k
Andrew Brewer
Chief Operating Officer0.42yrno datano data
Joe Akari
Chief People & Capability Officer4.58yrsno datano data
Jarek Dobrowolski
Financial Controllerno datano datano data

0.5yrs

Average Tenure

Experienced Management: NZR's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Zealand
MD & Director4yrsNZ$122.50kno data
Simon Allen
Independent Chairman5.33yrsNZ$180.00k0.011%
NZ$ 25.2k
Vanessa Cynthia Stoddart
Independent Director7.25yrsNZ$115.00kno data
James Miller
Independent Director1.75yrsNZ$122.08k0.0074%
NZ$ 16.6k
Lindis Jones
Director2.42yrsNZ$84.04kno data
Riccardo Cavallo
Director3.33yrsNZ$75.00kno data
Deborah Boffa
Director3yrsNZ$78.62kno data

3.3yrs

Average Tenure

Experienced Board: NZR's board of directors are considered experienced (3.3 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$224.983m
  • Shares outstanding: 312.48m
  • 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
NZRF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

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 Analysis2020/08/05 10:40
End of Day Share Price2020/08/05 00:00
Earnings2019/12/31
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.