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Z Energy FY20 Earnings Release and Offer Announcement

11/05/2020 - General News

Z Energy (NZX:ZEL ASX:ZEL) released its results for the year ended 31 March 2020 today. Z Energy (Z) has reported a Historical Net Profit after Tax (HC NPAT) loss of $(88) million, compared with a profit of $186 million for the previous corresponding period (PCP). The significant decrease in HC NPAT reflects several factors including lower retail fuel margins and reduced refining margins. The loss includes non-cash impairment charges of $96 million, comprising the $35 million impairment of goodwill associated with the Flick investment as previously disclosed and a $61 million impairment of goodwill associated with the Caltex retail supply contracts. The result also includes $33 million of Covid-19 related costs and provisions, an increase of $6m from the $27 million costs and provisions disclosed on 3 April 2020. At an operating level, Replacement Cost EBITDAF1 (RC EBITDAF) was $366 million for the full year, in line with Z’s most recent guidance update, representing a decrease of $68 million (-15%) against the previous financial year (PCP). The RC EBITDAF result includes the $33 million of Covid-19 related costs and provisions.
Z also today announced an equity raise of up to $350 million via the issuance of ordinary ZEL shares comprising $290 million of new shares via a fully underwritten placement and up to $60 million share purchase plan (SPP). The equity raising has been sized with the intention of delivering a robust capital structure that allows Z to navigate the current market conditions while favourably positioning the business to take advantage of opportunities as the New Zealand economy begins to recover from the effects of Covid-19.
Read the full press release here
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