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

Z Energy (ASX:ZEL) reported a net loss after tax of $88 million New Zealand dollars 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, itseeks 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.
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Source: Finance News Network