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Channel Infrastructure NZ (CHI) investor relations material

Channel Infrastructure NZ H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary25 Aug, 2025

Executive summary

  • Delivered strong and stable financial results for the six months ended 30 June 2025, with EBITDA of $48.5 million and a 69% margin, despite the expiry of the Wiri lease.

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

  • Interim dividend of 6.25 cents per share declared, a 42% increase, with a new payout policy and reinvestment plan.

  • Secured four storage contracts in 18 months, including a nine-year extension adding ~$50 million in revenue from 2028.

  • Major capital projects, including ZEUS Energy jet storage and bitumen import terminal, are on track and within budget.

Financial highlights

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

  • Net profit after tax from continuing operations was $13.1 million, up 2% year-over-year; total comprehensive income was $10.4 million.

  • Normalized free cash flow increased to $35.2 million, with a 73% EBITDA to free cash flow conversion rate.

  • Net debt stable at $297 million as of 30 June 2025; interest cover ratio at 5.2x and gearing at 27%.

  • Operating cash flow increased to $39.7 million from $36.8 million year-over-year.

Outlook and guidance

  • FY25 guidance unchanged, with normalized EBITDA expected at $89–94 million and ordinary dividend between 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 projected from H2 2026 with new projects.

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

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Frequently asked questions

Channel Infrastructure NZ Limited is a New Zealand-based company that operates essential infrastructure for fuel supply and storage. Previously known as the operator of the Marsden Point oil refinery, the company has transitioned to providing fuel import, handling, and storage services. Channel Infrastructure manages facilities that receive and store refined fuel products, supplying fuel to major New Zealand regions through pipelines and distribution networks. The company supports a range of sectors, including transport, aviation, and energy. The company is headquartered in Ruakākā, New Zealand, and its shares are listed on the NZX.

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