Z Energy (ASX:ZEL) reports $88 million loss

Company News

by Katrina Bullock

Z Energy (ASX:ZEL) reported a net loss after tax of NZ$88 million for the year ending 31 March 2020. This followed a profit of $186 million for the previous corresponding period.

The company says its earnings were impacted by the competitive retail market and low refining margins.

The loss includes non-cash impairment charges of NZ$96 million to account for the write downs of goodwill associated with the Flick investment and the Caltex retail supply contracts.

The company was also hit with a NZ$33 million provision as a result of Covid-19 – that is NZ$6 million more than the company anticipated.

The Board has cancelled the final dividend for FY20 and refused to provide guidance for the financial year ahead. Meanwhile, it seeks to raise $350 million New Zealand dollars through a placement and share purchase plan.

Shares in Z Energy (ASX:ZEL) are in a trading Halt. They last traded at $2.97.

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.