Dalrymple Bay Infrastructure (DBI) H1 2024 earnings summary

Executive summary

• EBITDA for H1 2024 rose 8.6% to $136.5 million, with net profit after tax up 8.2% to $36.8 million year-over-year.

• Dalrymple Bay Terminal exported 29.9Mt of coal in H1-24, with 81% of revenue from metallurgical coal mines and 71% of exports to Japan, South Korea, India, Taiwan, and China.

• Distributions for H1-24 totaled 10.75cps, with guidance for TY-24/25 at 22.5cps, a 4.65% increase, and yield exceeding 7.2%.

• All export capacity remains fully contracted under take-or-pay agreements through June 2028, eliminating volume risk.

• Major NECAP capital projects and regulatory certainty support future growth and diversification into new energy exports.

Financial highlights

• Funds from operations (FFO) increased 4.2% to $73.9 million compared to H1 2023.

• Terminal Infrastructure Charge (TIC) for TY-24/25 is $3.59/t, up 4.2% year-over-year, reflecting CPI indexation and NECAP charges.

• Net debt at 30 June 2024 was $1,654.7 million, with a weighted average debt tenor of 7.2 years.

• Handling costs are fully recharged to users, having no impact on EBITDA.

• Unrestricted cash and term deposits totaled $452.5 million, with $450 million in undrawn bank facilities.

Outlook and guidance

• Distribution guidance for TY-24/25 is 22.5cps, targeting 3-7% annual DPS growth, with payout ratio targeted at 60-80% of FFO.

• NECAP capital projects of ~$395 million underway, expected to drive future TIC and revenue growth.

• Organic revenue growth expected from NECAP project implementation and potential 8X expansion.

• Strategic priorities include capacity optimization, asset diversification, and ESG initiatives.