23/05/2011 - General News
The annual report produced by Greenstone Energy this week is already a collector’s item.
Just one year after the company was formed as a result of a partnership between the Guardians of New Zealand Superannuation and Kiwi company Infratil Limited, who jointly acquired the downstream business of Shell New Zealand, the decision has been made to rebrand the company to one that better reflects its New Zealand ownership and provide a differentiation from the large global companies.
Z Energy is the new name, but it also represents a new offering where the company will strive to deliver what New Zealanders expect and would like from a Kiwi energy distribution company.
Mike Bennetts, CEO of Z Energy, said today: “The book closes on Greenstone Energy, with the distribution of the New Zealand company’s first annual report, and this coincides with completing our first week under our new brand: Z Energy.
“In our first months of operation the key focus was on ensuring: a smooth transition and that the momentum inside the business continued; that customers were looked after; and that our operations ran safely and reliably. The next thing we needed to do was turn our minds to the challenges of creating a stand-alone kiwi company, no longer a mixture of disparate teams operating as a branch office for a global organisation.
“Infratil last week reported earnings of $55m from their share in Greenstone, however, allowing for one offs, this equates to a post tax profit equivalent to 3c a litre.
“We have made no secret of the fact that the returns in this industry are simply not strong enough to encourage or enable sustained investment, and as a result larger global companies are looking to exit the market. Over time the lack of investment will continue to erode supply security and customer choice,” Mike Bennetts said.
Currently our net profit is 2-3c per litre including the convenience store retail margins. By contrast, more than $1 of the pump price currently goes to the Government in taxes and levies.
“We think we can grow our business by providing our customers what they most want in the form of excellent and speedy products and services, by becoming a part of our communities, by bringing back jobs to New Zealanders, and by being open and transparent about the issues.”
Mike Bennetts said that to find out what New Zealanders wanted, Greenstone asked 17,000 New Zealanders what they thought in the largest piece of research conducted in the sector for decades. This research told us “where we need to go with our retail and commercial offers; what being part of the local community really looks like; how to contribute to the national debate on infrastructure; and as a supplier of fossil fuels, the importance of our role in supporting a sustainable energy future.” Mike Bennetts said.
“We can’t deliver it all straight away, but in terms of the service offering and customer experience, Z Energy’s first pilot petrol station opens next week in Greenlane, Auckland. It is a pilot because we will keep listening to feedback, asking our customers what we need to change and how we can do it even better, as we roll out our new customer offers across the country.”
Before the first station has opened, New Zealanders have shown they are interested and keen for something new. Aside from the media interest at the launch, in our first week of Z we had:
Not bad for a brand that is only a week old.
“Our strategy work has shown us that there are plenty of opportunities to shape a better future for our company. New Zealand needs substantial companies that are committed to this country, backed by Kiwis and that will make the investment in resources and infrastructure needed to ensure our country moves forward,” Mike Bennetts said.
A copy of the annual report is attached, or go to: http://z.co.nz/about-z/investor-centre/annual-report/
For more information contact:
Z Energy Ltd.
04 462 4647