Channel Infrastructure NZ (CHI) H1 2026 earnings summary

Executive summary

• Delivered strong financial and operational performance for HY26, with revenue up 4% to $72.9 million and EBITDA of $48.8 million, supported by robust project delivery and upgraded FY26 EBITDA guidance to $103–$108 million.

• Interim dividend increased 16% to 7.25 cents per share, reflecting confidence in future earnings and stable cash flow.

• Major infrastructure projects, including Z Energy jet storage and government diesel storage, were completed ahead of schedule, enhancing national fuel resilience.

• New long-term storage contracts, such as a 15-year bp deal worth NZD 130 million, and expanded Marsden Point storage by 40% in three months.

• Net profit after tax rose to $19.3 million, with total comprehensive income at $17.0 million.

Financial highlights

• Revenue for HY26 was $72.9 million, up 4–5% year-over-year, driven by higher variable terminal fees and contracted storage.

• EBITDA reached $48.8 million, up 1% year-over-year, with a margin of 67%; underlying EBITDA up 3% excluding legacy lease impacts.

• Net profit after tax increased to $19.3 million, and earnings per share from continuing operations were 4.7 cents.

• Normalized free cash flow from operations was $33.6 million, with a 69% conversion rate.

• Growth capital expenditure surged to $25.1 million, with total CapEx for the half at $41.5 million.

Outlook and guidance

• FY26 EBITDA guidance upgraded to $103–$108 million, with full-year contributions from new storage contracts expected in FY27.

• Maintenance CapEx guidance remains at 8–10% of revenue; free cash flow conversion and dividend policy unchanged.

• Interim dividend of 7.25 cents per share declared, payable in September 2026.

• Inflation and PPI indexation expected to impact revenues next year.

• Ongoing investment in growth projects, including bitumen import terminal and tank conversions.