New Zealand Refining : RNZ Performance Report YTD

Slide 1 Performance Update 17 May 2016 Disclaimer

• This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred to as "Refining NZ").

• Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency fluctuations, production results, demand for Refining NZ's services and other conditions.

• Forward looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

• Forward looking statements include among other things, statements concerning the potential exposure of Refining NZ to market risk and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions.

• Forward looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases.

• Readers should not place undue reliance on forward looking statements.

• In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.

• Each forward looking statement speaks only as of the date of this announcement, 17 May 2016.

  Performance highlights March-April

  Positives Negatives

• Shutdown completed safely, on time

• Emerging work (C7601) successfully completed

• All units running with refinery at full

  throughput

• Pleasing TMH performance

• Good progress on the strategic natural gas and crude shipping projects

• Shutdown impact on margin

• Market announcement of C7601

  NZ $7-8m margin impact

  March to Apr margin affected by shutdown

  Excluding the shutdown, the YTD margin (US$6.52/bbl) is at the high end of the

  historic margin band (US$4-6/bbl)

  FY 15	J-A excl shut	Delta	J-A incl shut	Delta
  Refining NZ Margin	9.20	6.52	(2.68)	4.90	(4.30)
  Uplift vs Singapore Complex	4.45	2.44	(2.01)	0.82	(3.63)
  - Freight Uplift	(1.12)	(1.12)
  - Product Quality	(0.41)	(0.41)
  - Crude cost and yield	(0.48)	(0.48)
  - Plant Availability	-	(1.12)
  - Emerging repair	-	(0.50)
  Singapore Complex Margin	4.75	4.08	(0.67)	4.08	(0.67)
  - Low crude price	0	0
  - Gasoline strength	(0.15)	(0.15)
  - Diesel weakness	(0.50)	(0.50)

  9.20

  Refining NZ margin

  Singapore complex margin

  4.45

  4.75

  4.90

  0.82

  4.08

  • Freight Uplift incurred a step-down between 2015 and 2016 due to the annual Worldscale rates update that reflects the impact of lower ship fuel costs (low crude/fuel oil cost).

  • Product Quality shows diesel weakness (lower 10 ppm premium versus Singapore marker).

  • Crude Cost and Yield includes the cost of the average crude basket versus the Dubai marker (minus US$ 1.20/bbl) and the product yield from the crude basket (positive US$0.72/bbl). The latter includes the negative impact of the Jan/Feb late crude deliveries and the positive impact of the margin improvements and TMH.

4

4