17 Dec 2009

Big drop in profit expected by refining company

12:48 pm on 17 December 2009

The New Zealand Refining Company is forecasting a substantial drop in its full year profit.

The refinery company now expects to make $10 - $20 million in the year to December, compared to $124.9 million last year.

The company says the operating margin has fallen significantly due to rising crude prices, a fall in demand for fuel and over supply in global refining capacity.

Its processing fee income has also been hit by a higher New Zealand dollar.