Channel Infrastructure NZ (CHI) H2 2024 earnings summary

Executive summary

• Revenue increased 7% year-over-year to NZD 139.8 million, with EBITDA up 9% to NZD 95.1 million and a 68% margin, driven by higher terminal fees and increased fuel throughput.

• Throughput rose 3% to 3.5 billion litres, led by 12% growth in jet fuel demand, while diesel and petrol demand remained stable.

• Secured three new storage contracts, adding approximately NZD 120 million in incremental revenue over 15 years, and invested NZD 55 million in infrastructure upgrades.

• Completed major capital projects, including the Transmix upgrade, on time and within budget, with high asset availability and strong safety performance.

• Announced Marsden Point Energy Precinct vision, with government support and early-stage biorefinery and sustainable aviation fuel projects under assessment.

Financial highlights

• Revenue rose 7% to NZD 139.8 million, with 91% subject to PPI indexation; EBITDA margin improved to 68% with EBITDA at NZD 95.1 million.

• Net profit after tax from continuing operations was NZD 25.95 million, with total net profit after tax at NZD 13.89 million due to discontinued operations loss.

• Normalized free cash flow was NZD 63.4 million, with a 67% conversion rate.

• Net debt at year-end was NZD 296 million, with leverage at 3.1x EBITDA and liquidity headroom of NZD 138 million.

• A NZD 381 million uplift in fair value of assets increased net tangible assets per share to NZD 1.98.

Outlook and guidance

• FY25 EBITDA guidance is NZD 89–94 million, with stay-in-business capex at 8–10% of revenue and free cash flow conversion in line with FY24.

• Throughput expected to rise 5% in FY25, but guidance assumes flat jet fuel demand due to economic and aircraft supply risks.

• By 2027, new contracts signed in 2024 will generate an additional NZD 8 million in annual revenue.

• Wiri lease expiry in February 2025 will reduce EBITDA by NZD 6 million annually; fixed fee component of import terminal revenue steps down from April 2025.

• Continued focus on growth, resilience, and supporting New Zealand’s energy transition, including Marsden Point Energy Precinct development.