Throughput and Margin Report – July/August 2018

Processing Fee income for the July/August period was strong at NZD 54.3 million, underpinned by a Gross Refinery Margin) (GRM) of USD 6.86 per barrel for the period and throughput of 7.6 million barrels. The July/August GRM was negatively impacted by around USD 0.85 per barrel as a result of the failure of the original equipment manufacturer valve on the hydrocracker in late June. Throughput for the period was the second-highest in Refining NZ's history, a testament to good collaboration with Refining NZ's customers and reliable post-shutdown refinery operation, delivering a strong operational performance. The Singapore Dubai complex margin for the July/August period was USD 2.57 per barrel, an increase from USD 2.02 per barrel for the May/June period. Refining NZ's uplift over the Singapore Dubai complex margin was healthy at USD 4.29 per barrel in July/August (USD 5.14 per barrel excluding the impact of the original equipment manufacturer valve failure). The average exchange rate for the July/August period was USD/NZD 0.67. Appendix I shows further information on throughput, margin and refining income. End CA:00324063 For:NZR Type:MKTUPDTE Time:2018-09-19 08:40:56