Operational Update for November – December 2021

HIGHLIGHTS o Excellent personal and process safety performance continued with no recordable injuries or Tier 1 or 2 process safety events. o RAP volumes were c.12% lower than the same period last year due to Auckland's lockdowns and border restrictions for most of the period. o Processing Fee revenue was NZ$23.6 million including Fee Floor adjustments, NZ$27.2 million prior to adjustments. o December's net debt closed at NZ$184 million, following the equity raise in December of c.$48.5m. The Company continues to operate cash neutral operations at the Fee Floor. o Finalised long-term agreements with customers for the provision of import terminal services and satisfied lender conditions precedent for conversion funding and lender consents. o Refinery run-down plans and upgrades to terminal facilities are underway in preparation for the conversion of the Marsden Point site from refinery to import terminal operations from April 2022. COMMENTARY Refining NZ's excellent personal and process safety performance continued with no recordable injuries or Tier 1 or 2 process safety events. RAP throughput of 2.3 Mbbls was c.12% lower than the same period last year. This was primarily due to a reduction in petrol demand caused by the Auckland border only opening in mid-December 2021 compared to the COVID Level 1 restrictions that applied in November/December 2020. By year end, petrol volumes had recovered close to pre-COVID levels and diesel volumes were above pre-COVID levels. The international border closure continues to impact jet fuel demand significantly, with demand for the period at c.30% of pre-COVID levels. The November/December GRM was US$4.99/bbl, generating processing fee revenue (before Fee Floor adjustments) of NZ$27.2 million, or NZ$23.6 million after Fee Floor adjustments to repay Fee Floor payments from earlier in the year. Singapore Dubai complex margins for the November/December period averaged US$0.56/bbl, impacted by the uncertainty around the Omicron COVID-19 variant. Refining NZ's GRM uplift over the Singapore margin was US$4.42/bbl, impacted by the export of jet fuel, petrol and fuel oil during the period to help manage stocks, following reduced New Zealand product demand. The Company has delivered cash neutral operations across the full year, including Strategic Review restructuring and implementation costs, with December net debt closing at NZ$184 million (compared to $230 million as at 31 October 2021) following the equity raise of approximately $48.5m. The equity raising was successfully completed as a $39 million underwritten placement and a $9.5 million Share Purchase Plan, and will enable the Company to pursue complementary growth through private storage services. In November, the Company finalised long-term agreements with its three existing customers (bp, Mobil, Z Energy) for the provision of import terminal services and the Board made the Final Investment Decision to proceed with the conversion and a name change to Channel Infrastructure NZ Limited (NZX:CHI) to align with the commencement of import terminal operations from April 2022. The Company has also satisfied the conditions precedent to lender consents and conversion funding. Refinery run-down plans and upgrades to terminal facilities are underway in preparation for the conversion of the Marsden Point site from refinery to import terminal operations. As previously announced, this will be the final bi-monthly Operational Update. The Company will provide quarterly updates on the conversion project through 2022, with the first quarterly report in April 2022. - ENDS- Authorised by: Chris Bougen General Counsel and Company Secretary Media Contact: Laura Malcolm Communications Advisor communications@refiningnz.com +64 (0)21 0236 3297 End CA:00386276 For:NZR Type:MKTUPDTE Time:2022-01-24 09:33:57