The owner-operator of NZ’s sole refinery at Marsden Point near Whangarei has also reported a 233% rise in dividend payments for the December year, lifting fully imputed dividends to NZ$2.00 per share from 60c and total dividends to NZ$3.00 from NZ$1.20 a year ago.

NZRC chairman Ian Farrant yesterday afternoon said the "exceptionally high" dividend reflected "unusually high” refining margins experienced during the year, and these were not expected to be maintained.

Trading revenue rose 48.8% to NZ$280.4 million and the pre-tax profit jumped from NZ$59.6 million to NZ$151.2 million. The stronger result was despite the refinery having to be shut down for the first time in over 20 years for maintenance. Farrant said the additional cost of the shutdown was offset by lower electricity costs.

During the year NZRC had spent NZ$79.4 million on its NZ$180 million Future Fuels Project – to lower sulphur levels in diesel and benzene in petrol – with the project now 88% complete and within budget.

NZRC shares – 74.1% of which are tightly held by BP NZ, Mobil Oil NZ, Shell NZ and investment company Emerald Capital – rose 20c yesterday to close at NZ$36, more than double the NZ$16.10 of a year ago.

Several of the major oil companies have this month reported 2004 profits bigger than some countries' gross domestic product, with Exxon Mobil reporting a US$25 billion return, Royal Dutch Shell US$17.6 billion and BP's US$16 billion.

Meanwhile, plans for the refinery to build its own small gas-fired power station on-site have been shelved until more secure gas supplies can be found, with general manager Thomas Zengerly saying NZRC cannot get suitable long-term gas contracts.