Z Energy Limited Analysis

Overview

In April 2010, Shell sold its New Zealand downstream oil business to a joint venture between Infratil and the New Zealand Superannuation Fund and Z was born. Z is an integrated transport fuels company with a difference it's run locally, serving customers only in New Zealand and with most of the company's 10,000 shareholders based in New Zealand.

Z Energy first listed on the NZ Exchange offering Debt in August 2013 with Infratil and NZ Super floating 60 per cent of the company and in October 2015, 30 per cent more was floated. Z is a member of the NZX10 and is listed on both the NZX and ASX.

In April 2016 Z received clearance to acquire the assets of Chevron New Zealand (trading under the Caltex brand), giving the company greater scale and the opportunity to deliver more benefits for customers, shareholders and New Zealand as a whole.

Performance

The following information was extracted from Z Energy Limited's half year report, released 26 August 2024:

Historical cost net profit after tax (HC NPAT) was $70m for the 6 months to 30 June 2024.

Z reports its earnings on an historic cost (HC) as well as replacement cost (RC) basis. Statutory financial statements are reported on an HC basis in accordance with NZ IFRS, however replacement cost accounting is the globally used non-GAAP industry standard to measure financial performance.

On an underlying RC basis, Z benefitted from the diversification of channels to market and Ampol integrated supply chain. Total fuel sales were down 3.8% on a like-for-like basis after adjusting for the exit and sale of the bitumen and avgas businesses during 2023.

Z has continued to execute on its energy transition strategy, with the on-the-go EV charging network reaching 128 bays across 44 sites as at 30 June 2024.