The listed company has reported that throughput for the 12-month period ending December 2003 was 39.3 million barrels, 2.5% below plan.

However, its refining margins were well ahead of plan and above expectations. The average gross refining margin for the 2003 year was US$3.24 per barrel (NZRC earns 70% of this margin).

NZRC said the benefits arising from these favourable margins had been offset to a significant extent by the strong New Zealand dollar. The average foreign exchange rate for the year ending December 2003 was US57.54 cents, with the New Zealand dollar appreciating by about 25% against the Greenback during 2003.

Meanwhile, main Future Fuels contractor Foster Wheeler is due to have ordered all equipment and started civil site works - foundations, drainage, cabling - for the NZ$180 million project that will enable the refinery to produce low-sulphur diesel and low-benzene, low-sulphur and low-level aromatic gasoline from late 2005.

Foster Wheeler is doing the EP work from its Sriracha, Thailand, office, though the project management team is residing in New Zealand.