Channel Infrastructure NZ (CHI) H1 2024 earnings summary

Executive summary

• Revenue rose 8% to $69.8 million and EBITDA increased 10% to $48.1 million, with a 69% margin year-over-year.

• Net profit after tax from continuing operations was $12.8 million, with total net profit after tax at $16.6 million including discontinued operations.

• Throughput increased 8% to 1.8 billion litres, driven by a 22% rise in jet fuel demand, now at 94% of pre-COVID levels.

• Interim dividend of 4.4 cents per share declared, up 5% from last year.

• Maintained a strong safety record and completed key capability resourcing for world-class operations.

Financial highlights

• Normalised free cash flow was $32.7 million, down 4% year-over-year, with a conversion rate of 68%.

• Net profit after tax from continuing operations was $12.8 million, down from $14.5 million year-over-year.

• Private storage revenue surged 59% to $8.1 million; variable terminal fees up 5% on higher throughput.

• Operating costs rose by less than $1 million despite inflation and compliance pressures, aided by a favorable electricity contract.

• Net debt at 30 June was $326 million; leverage at 3.4x EBITDA, within the 3–4x target range.

Outlook and guidance

• FY24 guidance unchanged: EBITDA expected at $92–96 million, normalised free cash flow at $62–66 million, and stay-in-business capex at $11–12 million.

• Jet fuel demand exceeded forecasts; cautious on economic environment and potential regulatory costs.

• Long-term outlook supported by stable, inflation-linked contracts and import terminal model.