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 exports to India up 30% compared to H1-23; 81% of revenue derived from metallurgical coal mines.

• All export capacity remains fully contracted under take-or-pay agreements through June 2028, eliminating volume risk and providing stable, predictable cash flows.

• Distributions to security holders totaled 10.75cps for H1-24, with a yield exceeding 7.2% and quarterly payments maintained.

• No fatalities or serious incidents occurred at the terminal; safety and ESG initiatives advanced.

Financial highlights

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

• Terminal Infrastructure Charge (TIC) increased 4.2% to $3.59/t for TY-24/25, with prior year at $3.44/t.

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

• Q2 2024 distribution of 5.375cps, with guidance for FY25 at 22.5cps, a 4.65% uplift.

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

Outlook and guidance

• Distribution guidance for FY25 is 22.5cps, targeting 3%-7% annual DPS growth and a payout ratio of 60–80% of FFO.

• NECAP capital projects of $395.5 million underway, expected to drive future TIC and revenue growth.

• Organic revenue growth expected from NECAP project implementation and potential 8X expansion; focus on asset diversification and ESG initiatives.

• Sufficient cash on hand to fully repay $338 million in USPP notes maturing September 2024.

• Ongoing assessment of alternative uses for the terminal, including hydrogen and new energy sources.