Channel Infrastructure NZ (CHI) H1 2025 earnings summary

Executive summary

• Delivered strong and stable financial results for HY25, with EBITDA of $48.5 million and a 69% margin, supported by cost discipline and new storage contracts.

• Revenue increased 1% year-over-year, driven by new storage contracts and PPI indexation, offsetting lower lease income.

• Maintained a robust safety record and high asset availability, with all 2025 strategic delivery measures on track.

• Announced a nine-year extension to a major storage contract, adding ~$50 million in revenue from 2028.

• Major capital projects, including ZEUS Energy jet storage and bitumen import terminal, are progressing on schedule.

Financial highlights

• EBITDA up 5% year-over-year, excluding the impact of the Wiri lease expiry; reported EBITDA up 1% to $48.5 million.

• Normalised free cash flow increased by 8% to $35.2 million, with a 73% conversion rate.

• Net debt stable at $297 million as of 30 June 2025.

• Interim dividend of 6.25 cps declared, up 42%, with a dividend reinvestment plan introduced.

• Net profit after tax from continuing operations was $13.1 million, up 2% year-over-year.

Outlook and guidance

• FY25 guidance unchanged; normalised EBITDA expected at $89–94 million, with ordinary dividend projected at 12.0–12.5 cps.

• Jet fuel demand outlook remains flat due to airline capacity and economic issues, but medium-term outlook is positive.

• Additional $8 million annual revenue expected from new projects starting in H2 2026.

• Nine-year storage contract extension to add ~$50 million revenue from 2028, requiring $20–26 million growth capex over 2026–2030.

• Capital projects, including tank conversions and bitumen terminal, remain a focus.