
Z released its quarterly update this week which said bank debt was reduced by $25million in the second quarter of the 2017 financial year and by $45million in the third quarter.
With anticipated reduced debt in 2018 from operating earnings, and divestment proceeds, Z said it expected to be close to its debt target faster than forecast.
Mr Foster said the target gearing ratio was likely to be achieved nine to 12 months earlier than originally forecast, giving the company flexibility to review its second-half and beyond dividend. The Forsyth Barr dividend forecasts lifted in 2019, reflecting the additional cash Z had available to distribute.
The company's ''Strategy 3.0'', which was about deriving additional merger benefits over and above those already discussed, would start in the 2018 financial year. Z was not providing any guidance yet as it was still too early.
However, it had decided what to do with the 10 Caltex branded sites it owned. Some were being rebranded Z Energy, some were sold to Caltex franchisees or sold separately.
Divestments of the required service stations was all but complete and on track to be fully completed by the end of the month, he said.
Z had appointed Scott Bishop as its new chief innovation officer responsible for building an innovation capability within the company.
As part of the ''What is Next'' strategy, Z had partnered with MEVO (Mobility on Demand) to pilot and showcase an electric vehicle sharing scheme. Last week, the Government announced it would match Z with $40,000 of funding for the project.
At two of Z's Wellington sites, fast chargers would be installed and customers would be able to buy vouchers at a discount to use an Audi electric vehicle for an hour.
Mr Foster said the partnership was a sign of Z wanting to be relevant in the future.
''Overall, this is a positive endorsement Z remains on track to deliver strong earnings and, in time, dividend growth over the next two to three years.''