New Zealand fuel distributor, Z Energy Ltd (ASX:ZEL), has signed a new deal with existing supplier, Shell Eastern Trading (Pte) Ltd, to procure and supply the crude oil that it needs.
The new contract is effective from today up until 31 March 2019 (around 2.5 years from now).
Z Energy says Shell’s oil procurement will cover its business requirements – including the requirements for the business it purchased from Chevron.
After conducting a robust review to determine who would be the best supplier, Z Energy says its new deal with Shell will result in savings of $5 million each year.
Z Energy posted a net profit of $57.66 million on 31 March 2016.