Z Energy sinks on profit warning
The S&P/NZX 50 Index declined 66.39 points, or 0.6 percent, to 11,241.59. Within the index, 28 stocks fell, 18 rose, and four were unchanged. Turnover was $123.8 million, of which Z Energy accounted for $18 million.
Z fell as much as 17.3 percent, ending the day at $4.23, down 12.8 percent. The transport fuels retailer downgraded its earnings outlook and said it would pay a smaller dividend as its retail margins remained under pressure in an increasingly competitive market. At the same time, refining margins were skinnier.
“Why it is that competition has broken out quite vigorously in the last few months is a little bit hard to tell, but it most certainly has,” said Matt Goodson, managing director at Salt Funds Management.
“Z had been a price leader in the market for quite some time and lost a fair bit of volume as a result, but the margin gains more than offset that.”
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