Does Z Energy have a future?
Our guest speaker this week was Chris Durno, formerly of OPUS, the London Underground, and Kiwirail, and now chief strategist at Z Energy, where he has been for seven years. He is a personable Canterbury-trained engineer and therefore can turn his hand to anything, including finance, marketing and branding.
Z is a dominant player, and heavily invested, in the fuels industry. It imports, refines (via Marsden Point), stores, distributes and sells about 45% of fuels used in New Zealand. It has an unrivalled network of service stations, now including Caltex. It is going to great lengths to make its core business as efficient as possible.
Z is in a sector that has changed little in the last 100 years. The auto industry has traditionally been closely tied to the oil fuel sector. But change is coming: there is a drive towards renewable energy and electric vehicles. By the late 2020s EVs will be as cheap to buy and cheaper to run than internal combustion types. By 2040, 50% of annual sales and 40% of the national fleet will be EVs.
So the problem facing Z is that the demand for oil fuel, its core product, is falling. Fuel sales peaked in 2018 and have now entered a period of steady decline.
Z’s response is twofold: to increase its share of the declining fuel market, and to invest in new products and services outside its traditional core business.
Z will, for example, sell more coffee and give quicker service to forecourt customers. The ‘customer experience’ will improve.
More importantly, Z will start to invest outside its current position. Targets are ‘future fuels’, (biofuels, fuel cells etc), electricity trading (Z has bought Flick), and ‘mobility as a service’. Presumably the latter includes ride sharing and autonomous vehicles.
Z will have to reinvent itself to survive. This is a big challenge and they will face stiff competition from new and specialist players. Good luck!
And the 2024 Prospa Local Business Hero is...
A huge congratulations to mother and son duo, Mary and Sam Danielson from The Puketapu Hotel.
The votes for all finalists have been tallied and they have been chosen by Neighbourly members across the country as the Prospa Local Business Hero of 2024.
The Puketapu Hotel was nominated by a local called Margaret and the nomination reads:
'On Feb 14, 2023, Cyclone Gabrielle flooded many of the rural areas. Puketapu Hotel went under perhaps half a meter of water. However, immediately Mary Danielson and her son, Sam Danielson, along with their loyal staff pulled it together to cook copious amounts of food that without electricity would have been wasted. Throughout the years many of us have been treated with a pub gathering where we can reconnect and a free meal. At Christmas there was Santa, games, gifts for kids, donated patchwork for adults, an ice cream truck and lots of camaraderie.
This February on the cyclone anniversary, they again pulled out the stops to give hundreds of us a special night. We are all tired of the cyclone cleanup and they understood that it was needed.'
Such a deserving business and team, well done Mary and Sam. And thank you to all those who voted!
Poll: What is the smallest size hearing device Triton Hearing offer?
Some kiwis think hearing devices are big and ugly.
What if we told you technology has advanced substantially and they’re available in all shapes, colours, and sizes?
Go in the draw to win* a $40 MTA voucher when you share your answer to the
question below. Give it a go!
*T&C’s apply – must be over 18.
-
89.2% a) The size of a pea
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4% b) The size of a AAA battery
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6.7% c) The size of a $2 coin
The Tova Show
Hello! Are you a …
- A student/young professional renting
- A young family, renting or owning
- An older New Zealander/retiree/pensioner
We’re reaching out from the Tova show, the flagship weekly politics podcast on Stuff, as we prepare for our budget coverage and how it’s affecting Kiwis - we’d love to hear from you.
We need a few people who are available the week before the budget (Wednesday 22nd/Thursday 23rd May) and on the day of the announcement (Thursday 30th May).
Please email tova@stuff.co.nz or comment below if you’d like to share your perspective with us. We give you our commitment to treat your experience with sensitivity and care.
Type NFP if you don't wish your comments to be used.
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