By Ben Collins

WELLINGTON, New Zealand--BP PLC (BP) plans to sell nearly half its stake in the New Zealand Refining Co. (NZR.NZ), which owns the Marsden Point refinery in the north of New Zealand.

Shares in Refining NZ were placed in a trading halt on Friday after the New Zealand-based company said BP wanted sell up to 11.1% of its 21.19% stake in the company. Refining NZ's shares closed at NZ$2.49 on Thursday, giving it a market value of 778.3 million New Zealand dollars (US$543.2 million).

Refining NZ, whose other major shareholders include Exxon Mobil Corp. (XOM) and Z Energy (ZEL.NZ), said the share sale by BP doesn't affect its existing contractual agreements with the U.K.-listed oil major. They include a processing deal, which remains in place.

In February, Refining NZ said its annual net profit fell by 69%, as pressure on refining margins from a recovery in global oil prices more than offset a record year for crude throughput at its Marsden Point plant. Rising oil prices typically dent the profits of refiners because it costs them more to buy crude to run through their facilities.

-Write to Ben Collins at djnews.wellington@dowjones.com

(END) Dow Jones Newswires

March 16, 2017 16:21 ET (20:21 GMT)

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