Caltex's AA smartfuel deal to cost Z Energy $5m
Z Energy said that after it had completed due diligence but before the sale was completed.
Hot Topic
Hawke’s Bay
Z Energy [NZX: ZEL], which is completing the integration of the Caltex fuel stations and Challenge! brand, has warned investors it expects earnings to be $5 million lower due to Caltex's deal with AA Smartfuel.
In a statement published to the NZX, Z Energy said that after it had completed due diligence but before the sale was completed, "Caltex renewed its AA Smartfuel contract." Details of the contract aren't being disclosed but it will hit profit between calendar 2015 and 2016.
Z says that it remains confident of delivering the $25-30 million in savings anticipated. Its plans to sell 19 fuel stations and one truck stop are described as "progressing to plan" with high levels of interest from multiple potential buyers. It's due to receive non-binding offers next month.
Z paid $785 million to Chevron New Zealand for the Caltex stations and the Challenge! brand, in a deal which settled on June 1. It is providing monthly updates to investors on the integration of the two businesses.
The shares rose 1.2% to $8.50, having gained 24% so far this year.
(BusinessDesk)
Get full access to the NBR Rich List 2016, released July 28, by claiming your free 30-day trial to NBR ONLINE premium content at NBR.co.nz/free
Edwin Mitson
Mon, 25 Jul 2016
Mon, 25 Jul 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Caltex's AA smartfuel deal to cost Z Energy $5m
60193