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186 news results

01/11/2018

High oil price, intense price competition and lower margins

Half year financial result and dividend

Z Energy (NZX: ZEL) today announced its earnings and net profit for the six months to 30 September 2018.

Z reports its earnings on an historic cost as well as replacement costs basis. Statutory financial statements are reported on an historic cost basis in accordance with NZ-GAAP, however replacement cost accounting is the globally-used non-GAAP industry standard to measure financial performance.[1]  

Replacement cost accounting is the financial measure that Z is valued at by the share market, that Z’s debt covenants are calculated on, that management is incentivised by, and that the Government track in their weekly margin monitoring.

Historical cost net profit after tax (HC NPAT) was $139m, up 74% from $80m in the prior corresponding period (PCP). This result was driven by the sharp increase in the underlying oil price over the period and the decline of the New Zealand dollar against the US dollar.

Z reported replacement cost earnings before interest, depreciation and amortisation (RC EBITDAF) of $175m, down 21% from $221m in the first half of last financial year.

Z’s replacement cost net profit after tax (RC NPAT) was $72m, down 31% from $105m in the PCP. Total marketing volume for the half year was 1,969 million litres, flat compared to the PCP. The above RC NPAT is equivalent to 3.7 cents per litre, down from 5.3 cents per litre in the first half of last financial year. Z’s RC fuel unit margin[2] of 15.5 cents per litre was down on the PCP of 17.0 cents per litre.

The Board of Z has declared a fully imputed interim dividend of 12.5 cents per share, up 20% from 10.4 cents per share compared to the PCP. The interim dividend will be paid on 11 December 2018.

Drivers of the result and of full year RC EBITDAF guidance

Commenting on the results, Z Chief Executive Mike Bennetts said that the operating environment for the first half of FY19 was the most challenging experienced in the eight and a half years of Z.

“During this period, US dollar crude prices increased by 25%, the NZD/USD exchange rate depreciated by 9%, and fuel taxes nationally and regionally increased. Combined, these factors have led to record high prices at the pump. These sustained high prices have resulted in a decrease in retail demand,” said Mike.

Competition has intensified in both the North and South Island, particularly on price, as customers seek out bargains in the high price environment.

“Margins typically come under pressure when crude prices rise steeply, as prices at the pump lag behind the increases in the price of crude oil, and customers are sensitive to new, higher price points,” said Mike.

In addition, results were negatively impacted by the extended refinery shutdown resulting in lost gross refining margin (GRM). The purchase of unplanned product imports to cover for the extended shutdown also had a negative impact on fuel margin.

“Given the volatility in crude prices and exchange rates, we are taking a cautious view on the second half of the financial year and reducing our full year RC EBITDAF guidance to $400 million to $435 million,” continued Mike.

Commerce Commission market study

Record high fuel prices, driven by high crude oil prices, the weaker exchange rate and additional tax, have once again thrust our industry and Z, into the political and media spotlight.

Mike acknowledged the impact that fuel prices have on customers, from households to businesses.  

“Because fuel has such a big impact on household budgets and many businesses, customers want to know that they are at least paying a fair price because the market is competitive.  We welcome a Commerce Commission market study as we believe that it is the most sensible and transparent way to give customers the assurance they need. It’s important to have an objective agency who can compel all industry participants to provide relevant data and have people with the skills and knowledge to interpret the data and investigate the market,” said Mike.

“Z cooperated fully with the MBIE led market study in 2017, and we will cooperate fully with any Commerce Commission market study. We will continue to point to the facts; our books are open and financial returns are not excessive given the complexity of the business and the capital employed, competition is intense and our returns are consistent with similar companies around the world,” said Mike.

Z’s strategy of optimising the asset base and boosting operating efficiency continues to pay off

Z has made considerable progress in continuing to deliver operating efficiencies throughout the business.

“Despite the difficult operating environment, we have continued to make progress on our strategy for a more productive core business,” said Mike.

“In the first half we delivered on our refinery optimisation strategy, we brought back in-house operational control of the remaining five fuel storage terminals (three were completed at the end of FY18) and simplified our bulk fuel distribution into a new long-term contract with a haulage partner.  These projects, plus others announced in our Strategy 3.0 program, are forecasted to contribute $16-18m of EBITDAF within the year.

On 1 September Z commenced fuel supply to the Foodstuffs Group, the co-operative for the New World and PAK’N SAVE stores.

Mike said that he was proud of the Z team for flawlessly executing a seamless transition.

“There are very few deals out there in the New Zealand market that represent such a structural shift in volumes. Z is now supplying approximately 150 million litres annually to the Foodstuffs Group supermarket service stations and is the redemption outlet for their fuel dockets.  This will grow Z’s supply chain volumes and further improve our economies of scale,” he said.

Investment in Flick Electric

On 1 September, Z invested $46m to acquire a 70% stake in Flick Electric. Flick is an electricity retailer and disruptor that allows its customers the choice between access to the spot price of the New Zealand wholesale electricity market or low fixed prices.

Commenting on the investment, Mike said that Flick fits into Z’s long-term view of the New Zealand energy market, providing access to the retail electricity market, access to a new form of energy and strong digital capability.

“Although Z’s ownership of Flick Electric is a majority, we intend for it to operate as a subsidiary company outside of Z’s operations, so that it can keep doing what it does best.  We will continue to support the Flick management team to grow the business towards EBITDAF profitability in FY21.”

Capital structure, debt reduction and returns to shareholders

Z remains committed to debt reduction and increasing returns to shareholders over the next decade. Z believes it is prudent to reduce its overall debt position and maintain a strong, investment-like grade balance sheet because of the uncertainty around the price of crude oil.

“At the end of last financial year, we had reduced our debt leverage, defined as debt to RC EBITDAF, to 2.1x. In the first half of FY19 debt to RC EBITDAF has increased to 2.4x through a combination of reduced earnings and the investment in Flick. Z remains committed to deleveraging to around 1.6x debt to RC EBITDAF by the end of FY21.

“This year sees the first implementation of our new dividend policy of ‘better with you than us’. While we acknowledge the current challenging trading conditions have reduced the size of the dividend from original guidance, the change in dividend policy reinforces our commitment to efficiently return cash to shareholders.

Second half outlook and priorities

Given the volatility of the global commodity markets and the recent movements of the New Zealand dollar, Z is not depending on a drop in crude prices or improving FX rates to support our second half performance.

Commenting on the priorities for the rest of the year, Mike said:

“Our focus for the next six months is simple, we must increase momentum by prioritising business as usual activities and projects that directly improve customer experience and we will focus our productivity work on fewer, higher value actions that create more meaningful bang for buck.”

A conference call for media and investors will be held at 10am on Thursday 1 November 2018. Dial in details can be found at https://investor-centre.z.co.nz/investor-centre/assets/Uploads/20181009-NZX-results-date-announcement.pdf

 

 


[1] Z prepares its statutory financial statements on an historic cost basis in accordance with NZIFRS. Earnings prepared on this basis are subject to volatility due to changes in oil prices and exchange rates and is therefore not a dependable measure of business performance or profitability. Replacement cost earnings do not reflect this volatility to such an extent as the cost of the stock sold is accounted for as its replacement cost at the time of its sale. Z’s management focuses on the industry standard replacement cost operating metrics, which it considers a better reflection of the underlying performance of the company.

 

[2] This is the margin on fuel sold before operating costs and corporate tax are accounted for.   

 

Reconciliation HC to RC

 

Investors:         Matt Hardwick             027 787 4688

Media:             Sheena Thomas           027 551 2589

08/10/2018

Z supports market study legislation

Z Energy is pleased to hear that the Government will expedite the passing of legislation to enable a fuel market study to occur sooner rather than later.

Z Chief Executive Mike Bennetts acknowledged that consumers feel hard hit by fuel prices and that they are seeking assurance. 

“Consumers are seeking assurance that prices are fair and the market is competitive and we believe that a Commerce Commission market study is the most sensible way forward. It’s important to have an objective agency who can compel data, with people who have the skills and knowledge to interpret that data and investigate the market fully,” said Mike. 

Z disputes that prices are unjustifiably high, and while margins have increased from an unsustainable level in 2008 which saw fuel majors exit New Zealand, it has not increased at the level suggested.

Current pump prices have been driven up by increasing crude oil costs, a weakening exchange rate and additional taxes, not Z’s profit margin.

“As a listed company, Z will release its half year financials in early November. We look forward to sharing an audited, exact view of our profits with the public then.

“Z believes the fuel market is highly competitive, but the way to satisfactorily demonstrate this and give consumers the confidence they need is to have the level of transparency that a market study can bring,” said Mike.

“Z cooperated fully with the MBIE led market study, and we will cooperate fully with the Commerce Commission,” said Mike.

 

 

Media contact: Sheena Thomas 027 551 2589

26/09/2018

Customer update on 2017 data breach issue

Z Energy is sharing the findings of a further investigation into the 2017 unauthorised access of the Z Card Online system with customers.

In November 2017, Z was contacted by an anonymous third party who alerted us to a vulnerability with Z Card Online, the online system used by Z Card customers to manage their fuel cards. When a fix was unsuccessful, Z disabled access to the system in December 2017 and worked with security experts to review the system and the security of customer data within in.

Z launched a new online system for customers to use in March 2018, which has been tested repeatedly to ensure customer data is as secure as it can be.

Z’s Chief Executive, Mike Bennetts, apologised for the 2017 security vulnerability, the inconvenience and any worry caused.

“We’re sorry for any concern caused by this issue, that we didn’t keep your data completely private like we are committed to, and the inconvenience of taking the platform offline for almost three months.

“We also acknowledge that some customers would have preferred to have had more information about the issue when we found out about it. Now that we have the findings from our further investigation into what exactly may have been accessed in the old system, we’re committed to fully sharing this information with customers and answering any questions customers may have,” said Mike.

Z has shared the information from this forensic analysis with its Z card customers by phone or email as part of a commitment to communicating clearly with customers about issues relating to their personal data.

Of approximately 30,000 Z Card customers, the investigation has identified that over the prior two-year period, there were 62 customers whose data was viewed by an unauthorised person prior to the site being taken offline in December 2017.                          

The investigation confirms that the type of data accessed was information such as first name, last name, address, email address, phone number, the Z outlets where card holders make purchases and the broad nature of those purchases.

Investigators found no evidence of unusual card activity including ordering cards or amending card orders, and it was not possible for the person who illegally accessed the data to view any payment information such as bank details.

All of the 62 customers have been contacted in person by Z.

Z has taken steps to ensure security of customer data across all its online customer facing systems.

“Like all organisations using online channels to improve the customer experience, we face an ever-changing landscape of cyber-security threats. However, we have learned from this experience and we’re confident that our cyber-security risks are well managed.

“We are committed to protecting the privacy and security of the information customers entrust us with,” said Mike.

If you are a Z card customer, and have not received any communications from Z recently, please contact Z on 0800 474 355.

 

Media contact: Sheena Thomas 027 551 2589

 

01/09/2018

Kiwi brands unite to bring fuel discounts to customers

Customers shopping at two of the most popular Kiwi supermarket brands can now earn fuel discounts for Z Energy service stations while they shop.

From today, Z Energy becomes Foodstuffs (NZ) Limited’s exclusive nationwide fuel partner.

Customers will now be able to use the fuel discounts printed on their New World and PAK’nSAVE dockets at the more than 200 Z branded service stations around the country, instead of the supermarkets’ previous partner, Mobil.

The partnership will also see Z Energy supplying fuel to the country’s 53 New World and PAK'nSAVE branded fuel sites.

Jane and Steve

Z Energy’s General Manager Marketing, Jane Anthony, and Foodstuffs (NZ) Ltd Managing Director, Steve Anderson, celebrate their Kiwi brands uniting to bring fuel discounts to customers.

 

Z’s General Manager of Marketing, Jane Anthony, says the supermarket fuel vouchers are an effective way for customers to save money on fuel, simply by doing their usual grocery shopping.

“Many customers have told us fuel discounts are really important, especially since the Auckland Regional Fuel Tax came into force in July and prices went up. That’s why we’re so pleased people who like using supermarket fuel vouchers can now come to Z.”

“Z has the country’s largest network of service stations, which means customers using supermarket fuel vouchers now have more service station and fuel site locations to choose from and they get to come to a Kiwi company to save on fuel,” says Jane.

Foodstuffs (NZ) Ltd Managing Director, Steve Anderson, says the Co-operative looks forward to continuing to reward its customers with fuel discounts at its New World and PAK'nSAVE branded fuel sites and now Z service stations too.

“Our customers enjoy earning fuel discounts as they shop. By uniting with Z, another strong Kiwi brand, our customers will not only keep earning great fuel deals but will also get the chance to enjoy the wider Z retail and customer service experience around the country.”

“With Spring arriving today, and the warmer weather likely to see more Kiwis heading out on the roads exploring, we know that fuel discounts are more relevant than ever to customers.”

“New World and Z will stay part of the Fly Buys and Air New Zealand Airpoints loyalty programs, ensuring customers have a selection of loyalty programmes to choose from for earning rewards through grocery and fuel purchases,” says Steve.

Foodstuffs and Z are sharing detailed information on the change directly with customers. To find more details on the supermarket fuel voucher discounts, go to http://www.fuelup.co.nz

 

ENDS

 

 

 

27/08/2018

Z Energy invests in Flick Electric

Z Energy announced today an investment of $46 million to acquire a 70.1% shareholding in Flick Electric, the Wellington based retail electricity supplier that was the first power company in the country to offer customers access to the wholesale price of electricity.

Steve and Mike Flick

The investment brings together an electricity industry disruptor and New Zealand’s largest transport energy company.

Z’s Chief Executive, Mike Bennetts, said that the companies will be focused on maximising the innovation potential of the energy sector as it transitions to a lower carbon future.

“We view this as a partnership that brings together Flick’s start-up mentality, differentiated offer, technology and talent, along with Z’s innovation and marketing capability, operational scale and resources,” said Mike.

Flick’s CEO, Steve O’Connor, says that Z’s investment will help Flick realise its potential.

“Over the past four years we’ve proven there’s an appetite for a new engagement model in energy retail, which has entrenched our vision to bring disruptive energy technologies to as many people as possible. This partnership, and the expertise and capital it brings to Flick, will allow us to do more, faster, and have a greater impact on New Zealanders’ lives.”

The partnership with Flick is also in line with Z’s commitment to a lower carbon New Zealand.

“This is another step towards the long-term sustainability of Z, and the role we play in a lower carbon transport future,” said Mike.

“Our investment in Flick is part of Z’s “What is Next” strategy and Capital Management plan as disclosed in our Investor Day materials in September 2017. We are continuously assessing options to invest and extend into adjacencies in one of our three preferred market spaces – future fuels, mobility and the last mile. Where it makes commercial sense to do so, you should expect Z to take action,” he said.  

Flick Electric is a privately held company that reported revenues of $43.4 million for the financial year ended 31 March 2018.

Z Energy will pay an initial consideration of $15.6 million for 22% of Flick in new issued capital and an additional $30.4 million for the purchase of an additional 48.1% of existing shares to take the total shareholding to 70.1%. In the next quarter the governance of Flick will change to reflect Z’s majority shareholding position.

Recognizing that two of Z’s Directors, Mark Cross and Steve Reindler, were conflicted, the governance of this transaction was entirely managed by a Board Committee comprising of Z’s other Directors. Z understands both directors will be considering their positions in the conflicted companies.

Z Energy will use existing credit facilities to fund the investment and the transaction will not impact current FY19 earnings or dividend guidance. Z Energy expects the investment in Flick Electric to be earnings accretive from FY21 onwards.

Ends

Investor contact: Matt Hardwick - +64 27 787 4688

Media contact: Sheena Thomas - +64 27 551 2589


Q+A with Mike and Steve will be held on Z’s Facebook page at 10 am Monday 27 August.

 

17/07/2018

Mevo secures further investment from Z Energy

 Mevo, Australasia’s first free-floating car share, has secured a further $300,000 (NZD) investment from New Zealand transport energy company, Z Energy (ZEL), as well as new funding from European Motor Distributors (EMD) and The Wellington Company (TWC).

Z Energy are now 12% shareholders, with both EMA (Audi NZ’s parent company) and TWC becoming 2.1% shareholders, respectively.

The latest investment will further fuel Mevo’s growth as it prepares for further expansion of its team and network. It follows a massive six months for the company, which has included a series of strategic hires, doubling its membership, rolling out at Wellington Airport, and launching the first free-floating car share service in Australasia.TAKE THE WHEEL

Mevo Chief Executive and Co-Founder, Erik Zydervelt, says it’s encouraging to see further investment in the future of New Zealand transport.

“It’s really promising to see established New Zealand companies like Z Energy, The Wellington Company, and European Motor Distributors actively engaging in environmentally responsible, future-focused initiatives,” said Erik.

As the world’s first climate positive car share, Mevo is at the cutting edge of sustainable transport alternatives in New Zealand.

“We support Mevo’s vision for innovative mobility-on-demand and applaud what it has achieved for inner-city transport in just a few short years. Mobility solutions are part of the future, particularly for urban New Zealand. Mevo is bringing that innovation right now and we are confident that Mevo plays an important role in our future.” said Glynn Tulloch, Group General Manager, EMD.

Z Energy also recognises the importance of innovation in providing mobility solutions that are better for the planet and simply better for customers, which has led to its continued support for the homegrown startup. This is the second investment from Z Energy, following a $250K investment in September, 2017.

“Z Energy shares Mevo’s vision for carbon conscious transport systems in New Zealand and they have been fantastic partners to help make this a reality,” said Erik.

Z Chief Executive, Mike Bennetts, says Mevo has the potential to change the way New Zealanders think about urban transport.

“Mevo is helping New Zealanders reconsider traditional car ownership and transport,” said Mike.

“By deepening our investment in Mevo, we hope to enable more Kiwis to jump in the driver’s seat of the future. It also enables Z to explore the future of mobility and learn more about changes in the way our customers are getting from A to Z.”

Investment from Z Energy, The Wellington Company and European Motor Distributors will have a huge role in the continued expansion of Mevo’s infrastructure within Wellington, and further afield. Since the last investment Mevo has focused on achieving product market fit and launching free-floating in May. Following the free-floating launch, Mevo has achieved a 100 per cent increase in monthly trips in its vehicles and was named winner of the Emerging Gold category at the Wellington Gold Awards.

With the latest investment, Mevo will continue to add talent its team and focus on scale and rapid growth. The company has recently appointed two industry veterans, Sophia Rizos as Head of Growth, and Maryon Wils as Head of Enterprise Sales.

“Maryon and Sophia share our vision for the future of thoughtful urban mobility, and their experience will be fundamental as we build on our recent momentum,” said Erik.

10/07/2018

Kiwis have voted on Good in the Hood funding split

The voting phase of the annual community funding programme is over and Z is this month sharing the funds among hundreds of Kiwi groups doing good for people or the environment in the area around every Z service station.

In May customers got an orange token every time they shopped at Z to vote for how funding should be split between the four groups supported at each Z service station. With more than a millions transactions a month at Z, more than a million voting tokens were given out.

All groups will get a proportion of the $4,000 allocated to each service station, in addition to a share of the $190,000 raised on the first ever Good in the Hood national fuel day, where 6c from every litre bought on the day was donated to Good in the Hood groups.

Z Community Manager, Gerri Ward, said voter turnout showed how much New Zealanders care about supporting needs in their communities.

“The needs each group will address with the funding were identified on the voting units so customers could see how their vote would make a difference in their local area.”

“The more than 200 Z service stations around New Zealand each have a further $1,000 to support other local groups and projects this year as part of Z’s commitment to giving back to the neighbourhoods we operate in,” Gerri said.

The voting results for each service station will be available on Z’s website from 09 July: https://z.co.nz/about-z/find-us/map z.co.nz.  To find out more about Good in the Hood head to www.z.co.nz/goodinthehood.

For more information please contact Georgina Ball +64 (0)4 498 0132

09/07/2018

Z Energy invests heavily in permanent forest sinks

Z Energy has invested $1.5million in permanent local forestry projects to voluntarily offset the emissions from their operations.

The investment represents the largest voluntary purchase of units from permanent forest sinks seen in New Zealand to date.

Z’s Sustainability Manager, Gerri Ward, says that for a carbon-intensive company that believes in the science of climate change, it was important to materially lead on solutions.

“Under Z’s environmental sustainability stand, we have committed to reducing our operational carbon emissions by 30% by 2020, and offsetting those we are unable to avoid.

“We’ve been underway for several years in identifying ways we can transform our business and our behaviours to reduce our emissions first, before looking to offset those we can’t avoid at this point in time,” said Gerri.

Z has partnered with long-standing carbon consultants Permanent Forests NZ Ltd (PFNZ) for this offsetting initiative. PFNZ specialise in aggregating, marketing and selling New Zealand forest carbon credits on behalf of owners of forests registered under the Permanent Forest Sink Initiative.

Gerri said that investing in local, permanent forests ensures the veracity of Z’s offsetting efforts.

“The integrity of our offsets is absolutely paramount. By locking up the carbon in these long-lived forestry projects, we know we’re getting authentic outcomes which we can stand by,” she said.

According to PFNZ’s Managing Director, Ollie Belton, many possible participants in the voluntary market, for example companies looking to voluntarily offset their emissions, or attain “carbon neutral” status, are deterred by the complexity of the carbon market, the lack of links between the compliance and voluntary markets, and the shortage of available permanent carbon offsets.

“This complexity has resulted in a reluctance to enter the voluntary market in recent years, both by buyers and sellers of forestry credits,” said Ollie.

“This deal with Z will undoubtedly make others sit up and take notice, and will lead to more land being committed to long term carbon conservation under the Permanent Forest Sink Initiative,” he said. 

Z’s operational carbon emissions, including those from corporate travel, retail electricity, coastal emissions, and hauliers come to about 58,000 tonnes of CO­2-e (carbon dioxide equivalent) per annum. At an average cost of about $25 per tonne, this comes to an annual cost of about $1.5m per year.

The outcome of this investment is purposely intended to make the business take the environmental cost of their activities into account when making business decisions.

“It’s reasonably easy to unintentionally dismiss environmental sustainability when making purely cost-driven business decisions,” said Gerri.

“By spending $1.5m on voluntary carbon offsets, we’ve effectively placed an internal price on carbon of $25 a tonne; which forces us to pay closer attention to where we’re being most carbon-inefficient,” she said.

Alongside the offset programme, Z also continues to focus on reducing the carbon intensity of its business. Z’s biodiesel plant in Wiri is operational, and Z has also recently increased its investment in Wellington-based electric ride-sharing company, Mevo.

 

29/06/2018

Z Energy calls for Z Card customers with any concerns to contact Z

Z Energy would like to assure customers that the current Z card online system is secure and there is no evidence to date that vulnerabilities in the former system resulted in any data manipulation. However, customers with any concerns around the previous system should contact the company. 

On 29 November last year, Z was informed by a member of the public that they could view other customers’ accounts, as exampled by a screenshot of Z’s own corporate fleet.

Z Chief Executive Mike Bennetts said that Z believed this person’s intent was to help Z improve system security and had no reason to believe that any data was going to be shared or used in any way.

“We took it in good faith that this person would not share or exploit this information as we immediately went about fixing the vulnerability.

“We also immediately began investigating previous activity in the Z card online system, and undertook additional security monitoring from the time we were first notified.

“We, and our external cyber security experts, did not detect any suspicious activity around any of our customers’ data. Nor have we had any reports from customers of suspicious activity for a period prior to and post the first notification.

“When this same person raised concerns with the security upgrade we had put in place, we immediately took the maximum precaution of taking the site down completely,” said Mike.  

The database in question used to hold Z card customer data such as name, address, registration number, vehicle type and credit limits. The system did not include bank or payment details.  

Mike said that while Z, and the cyber security experts it has engaged, have not detected any customer data being compromised, Z is committed to assisting customers in any way possible in relation to this incident.

“I want to be clear that we, and our external cyber security experts, could not and still have not, found any evidence of anyone tampering with customer accounts. The incident continues to be investigated by Z’s external cyber security experts and we will inform customers if any new information is uncovered.”

Mike said that some customers will quite fairly feel like they should have been told more explicitly about the issue.

“We had to make a difficult decision when notifying customers of the vulnerability, and we’re sorry that we have not been as straight up as we normally are,” said Mike.

“From the time this was first brought to our attention, we continually sought external expert cyber security advice as to how to deal with and message this vulnerability to our customers.

“The advice was to talk about this as a technical issue. External cyber security experts we spoke to strongly advised against talking about this publicly as a data privacy issue due to additional publicity typically increasing the risk of cyber security threats.

“We repeatedly challenged this counsel as it did not sit well with our values, but ultimately chose to follow the advice of our experts given our commitment to cyber security and mitigating risk to customer data and privacy.

“The advice from cyber security experts has proven to be true as, since this issue was reported, we have noticed an increase in targeted suspicious activity towards the new Z card system from offshore IP addresses.

“We continue to monitor this activity and any further potential risk. While no system is completely immune to attacks, Z’s new platform meets high standards of cyber security,” said Mike.

The reason Z is choosing to talk about this openly now is because of a screenshot of Z’s corporate fleet account being sent to the media by a member of the public who accessed the system. As a result, Z is no longer treating this historic issue as a vulnerability, instead treating it as a breach, and has voluntarily informed the Privacy Commissioner of the issue.

Customers should contact their account managers or the Z Energy call centre (general@z.co.nz or 0800 474 355) if they have any concerns or would like to speak with someone directly.

 

Media: Sheena Thomas 027 551 2589; Nicola Law 021 192 8181

27/06/2018

Z Card online data

Z Energy Limited is aware that customer data from its Z Card online database (ZCOL) was accessed by a third party in late November 2017. 

This system enables the customer to manage their fleets directly, rather than through requests to a call centre.

The third party found a way to get unauthorised access to the part of the database that holds data about customer fleets such as names, addresses, registrations numbers, vehicle types and Z Card credit limits.

With the evidence provided to Z to date, the company believes the data accessed does not include bank details, or other information that would put customer finances directly at risk. That is because these sort of customer details were not held within the system that was accessed for security reasons. Z is committed to assisting customers in any way possible in relation to this incident.

Z has alerted the Privacy Commission to the incident this afternoon.

The system concerned is no longer in operation having been closed on 15 December 2017. Z has built a new Z Card online website that has been tested repeatedly to ensure customer data is secure.

Z has engaged an external provider to commence penetration testing across all of Z’s customer facing systems to immediately assess for any vulnerabilities.

Z also operates Caltex Star Card. The Star Card online system has very similar characteristics to that of the former ZCOL system. As a precaution, Z is taking this system down with immediate effect, until the company can be confident it does not exhibit the same vulnerabilities.

Z takes its data privacy responsibility and threats to cyber security very seriously and is taking steps to ensure that the company learns from this incident.

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