Lower margins for NZ Refining

The company, which in February announced a bumper profit of $69.5 million, says although the strong margins it achieved last year continued into January this year, they began to decline in February as supply outstripped demand.

"This trend is continuing in March," the company says in a statement.

"The NZ/US exchange rate hardened slightly in the period, but has now weakened to levels pertaining at the end of 2000."

In January/February the company refined 6.465 million barrels of oil with an average US dollar margin of $2.53 a barrel. This compares with 6.45 million barrels refined during the same period last year with an average margin of US$2.61.

Refining margins last year averaged US$2.85 a barrel at an average NZ:US exchange rate of 45 cents.

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