NZ Refining aims to shrink workforce, squeeze yields as global over-capacity hurts margins

Fri, 23 Aug 2013

By Jonathan Underhill Aug. 23 (BusinessDesk) – New Zealand Refining plans to shrink its workforce by 8 percent by 2014, cut costs via new electricity and gas supply contracts and boost its hydrocracker yield in the face of ‘systemic discounting’ from larger refineries in South Korea and India. New Zealand’s only oil refinery lifted its gross refinery margin (GRM) to US$5.27 a barrel in the six months ended June 30, from US$4.36 a year earlier. That’s still below the average GRM of $5.77 a barrel achieved in full-year 2012 and US$6.11 in 2011...

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