NZRC, owner-operator of the country’s sole refinery at Marsden Point near Whangarei, said on Wednesday that high refining margins were experienced throughout the first eight months of this year and that the processing fee cap of $US9 per barrel “has been triggered by all customers”.

The company said it processed 6.525 million barrels (MMbbl) during July-August, with a refining margin of $9.89/bbl.

The latest July-August margin compares with $8.498/bbl for the corresponding 2005 period and $6.55/bbl two years ago.

Average processing margins for May-June 2006 were $9.60/bbl, a record $10.79/bbl for March-April, and $6.21/bbl for January-February.

The company also reported July-August processing fees of $NZ68.78 million (about $A57 million).

Throughput for the eight-month period was 2.95% below plan due to the timing of a planned hydrocracker maintenance shutdown and other minor unplanned outages.

NZRC also said that it had a contingent asset of $15.7 million as at August 31.

However, the lower margins expected during September and October would mean a significant portion of this contingent asset would be recognised as income, the company added.

In August, NZRC said its margins were so high it might have to return some money to its four big oil customers – Shell, BP, Mobil and Caltex.

The refinery produces more than 70% of the country’s petrol, diesel and aviation fuel needs, and all New Zealand retailers, except Australian-owned Gull, are significant NZRC shareholders. Shell, BP, Mobil and Caltex own in excess of 70% of the company.

NZRC’s shares have more than quadrupled in value over the last three years and were trading as high as $8.15 earlier this year. However, with the recent drop in world oil prices, they have fallen and were trading on the New Zealand Exchange at $6.74 this morning.