Operational Update for January/February 2021

HIGHLIGHTS o Excellent personal health and safety performance continued with no recordable injuries. We recorded a Tier I process safety incident - our first in over two years. o Simplified refinery operations processed 4.4 million barrels before the refinery shutdown for the planned maintenance turnaround in the second half of February. o Refinery to Auckland pipeline petrol and diesel volumes were similar to the same periods in 2019 and 2020, despite Auckland's recent Alert Level 3 lockdown. Jet fuel demand remains impacted by COVID-19 travel restrictions. o Singapore Complex Margins were comparable with November/December 2020. Processing Fee revenue remained at the Fee Floor due to low international refining margins and the maintenance turnaround. o The four week maintenance turnaround, which includes the first statutory inspection of the CCR Platformer unit, has progressed to plan and is now largely complete with the refinery due to be restarted next week. o Net debt at the end of February was $231.5 million, reflecting cash neutral operations after Strategic Review and restructuring costs paid of c.$5 million. o In principle agreement reached with bp Oil New Zealand on key commercial terms for import terminal. Negotiations continue with Z Energy and Mobil. COMMENTARY Refining NZ's excellent personal health and safety performance continued with no recordable injuries. The Company reported a Tier 1 incident related to a fire on a structure whilst a unit was shutting down for scheduled maintenance. The fire was quickly extinguished with limited damage to facilities. Repairs will be completed prior to restart of the facilities. RAP throughputs at 2.3 Mbbls, were c. 66% compared to the same period last year due to the depressed jet fuel demand at Auckland International Airport, significantly impacted by COVID-19 travel restrictions. Combined petrol and diesel RAP throughput for January/February was similar to the comparable periods in 2019 and 2020, despite Auckland's recent Alert Level 3 lockdown. Simplified refinery throughput was 4.4 Mbbls, significantly less than the 6.9 Mbbls in the same period last year, impacted by the scheduled maintenance turnaround and an underutilisation of the available refinery capacity by customers. Processing fee revenue remained below Fee Floor levels during January/February due to weak global refining margins and reduced throughput for the period. Margins and demand continue to be impacted by COVID-19. The Singapore Dubai complex margin for the period was weak at (negative) US$-1.56 per barrel reflecting a surplus of refining capacity globally and an operating environment of low utilisation and margins. Refining NZ's January/February uplift over the Singapore Dubai complex margin was strong at US$5.04 per barrel due to the processing of residue stocks built up in the previous year and significantly reduced fuel oil production during the period. Gross Refining Margin for the two months was US$ 3.48 per barrel. Processing Fee revenue for the two months was NZ$ 22.6 million, including NZ$7.7 million of Fee Floor payments by our customers. The planned four week maintenance turnaround for the CCR Platformer (Te Mahi Hou Project commissioned in 2015), the crude distillation unit and associated plant commenced in mid-February. The $20 million turnaround is largely complete in line with plan and with little work emerging from equipment inspections. During the turnaround, all other processing units not undergoing maintenance have been temporarily shut down, with customers importing refined products during this time. The refinery is due to be restarted next week. Net debt at the end of February was $231.5 million, reflecting cash neutral operations during the period, after strategic review and restructuring costs paid of c.$5 million. Significant progress has been made assessing the import terminal option, with potential to unlock latent value in our highly strategic infrastructure assets. In principle agreement has been reached with bp Oil New Zealand Limited on key commercial terms (non-binding and subject to conditions). Import terminal negotiations continue with Z Energy and Mobil. Authorised by: Chris Bougen General Counsel and Company Secretary For further information: Laura Malcolm Communication Advisor communications@refiningnz.com +64 (0)21 0236 3297 End CA:00369389 For:NZR Type:MKTUPDTE Time:2021-03-19 10:19:03