Company chairman Ian Farrant described the latest after-tax figure, of NZ$61,846,000, as “a strong result for NZRC” and said the directors were pleased with all facets of the business.

The corresponding 2004 net profit, of NZ$34,323,000, had been cut by a three-week catalyst and maintenance shutdown that cost NZ$15 million cost and reduced throughput.

In the latest June half-year, the Marsden Point refinery processed 19.1 million barrels of crude oil, close to the limits of its physical capacity, achieving a strong refining margin of US$7.76 per barrel.

Income from the upgraded refinery-Auckland products pipeline, and rental from the Wiri (south Auckland) fuel terminal was steady at NZ$16,784,000. Other income, consisting mainly of interest, was lower, due to the company moving into a net debt situation brought about by its NZ$180 million investment in the Future Fuels refinery upgrade.

The project – the largest investment in the refinery for 25 years - allows NZRC to produce the next generation of cleaner, world-class fuels, ahead of new government fuel specifications that come into force from next January.

The Future Fuels upgrade, which was formally opened this afternoon, allows the refinery to cut the benzene content of petrol from 3% to 1%, and the sulphur content of diesel from 500 parts per million (ppm) to 50 ppm.

Farrant also said the NZRC directors had decided to pay an interim dividend of NZ$1 per share which, in light of attractive investment opportunities available to the company, they believed was in the best interests of shareholders.

At the last annual meeting, in April, some shareholders suggested the directors consider a share split to bring the NZRC share price – which this morning traded on the NZX at NZ$53.50 - more in line with the rest of the exchange.

Farrant today said the directors had carefully considered this and made the decision that NZRC shares would be split ten-for-one from October 7.