Channel Infrastructure NZ Limited Analysis

Overview

Channel Infrastructure is New Zealand’s leading independent fuel infrastructure company, based at Marsden Point, in Northland. Channel Infrastructure primarily acts as an import terminal for the fuel needed to power New Zealand’s economy. On behalf of its customers, the company receives, stores, tests and distributes transport fuels safely, reliably, and efficiently to the Northland and Auckland markets.

Performance

The following information was extracted from Channel Infrastructure NZ Limited's Half Year Results, released on 23 August 2024:

Channel Infrastructure (NZX: CHI), New Zealand’s largest fuel import terminal, has today released its financial results for the six months ended 30 June 2024 (HY24).

Highlights

Strong safety track record maintained
Total throughput up 8% to 1.8 billion litres, reflecting continued strong growth in jet fuel demand (up 22% on HY23)
$48.1 million EBITDA (+10% pcp), $32.7 million Normalised Free Cash Flow1 and an ordinary dividend declared of 4.4 cents per share
Announced today 10-year jet fuel storage contract expected to generate ~$55 million of additional revenue over the contract term

(pre-PPI indexation) from Q1 2027. Growth capital expenditure investment of $26 - $30 million across 2024 to 2026

Significant progress made towards becoming a world-class infrastructure operator with excellent asset availability and completion of

capability resourcing

Work continues with Seadra and their consortium partners, including Qantas, Renova Inc, Kent Plc and ANZ Bank, for the conditional

sale of the decommissioned hydrocracking assets. Seadra’s option extended to 30 September 2024 for a further US$0.2 million

option fee (total non-refundable option fees of US$4.7 million)

FY24 guidance remains unchanged and the Board has declared an interim dividend of 4.4 cents per share, up 5% on the HY23

dividend

In any given GDT Event the GDT website may display a range of results other than price, as explained:

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‘n.s.’ (not sold) means that no product was sold.
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For clarification where GDT publishes ' – ' or ‘n.s.’ (not sold) NZX results will also display a '-' or 'n.s'.

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Note that N/A in the table below means there has been no change between current and previous price.