5 Nov 2015

Z Energy more than triples first-half net profit

5:34 pm on 5 November 2015

Fuel retailer Z Energy's first-half net profit has more than tripled, driven by strong refining margins, improved retail margins and constrained expenses.

Z service station

Z service station Photo: RNZ / Alexander Robertson

The net profit rose to $67 million in the six months ended in September from $22m last year.

The company's preferred measure of performance - replacement cost operating earnings - rose 15 percent to $105m.

It has put aside $23m to cover its dispute over duties with Customs, and has spent $10m on planning and preparing for its still to be approved takeover of the Caltex fuel network.

Z chief executive Mike Bennetts said the company has been firing on all cylinders.

"We continue to yield good benefits from our investment in our stores - giving customers good offers, giving them choice and growing our margins there," he said.

The company has raised its first half dividend by 10 percent to 8.5 cents a share.