Dalrymple Bay Infrastructure (DBI) H1 2024 earnings summary

Executive summary

• EBITDA for H1 2024 rose 8.6% to AUD 136.5 million, with net profit after tax up 8.2% to AUD 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 to security holders totaled 16.125 cents per security for H1-24, with guidance for TY-24/25 at 22.5cps, a 4.65% increase, yielding over 7.2%.

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

• DBT operates the world's largest metallurgical coal export facility, focusing on stable cashflows, inflation-linked pricing, and a robust capital growth pipeline.

Financial highlights

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

• Terminal Infrastructure Charge (TIC) increased 4.2% to AUD 3.59/t for TY-24/25, reflecting CPI indexation and NECAP charges.

• Net debt at 30 June 2024 was approximately AUD 1.7 billion, with a weighted average debt tenor of 7.2 years and all USD debt fully hedged.

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

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

Outlook and guidance

• Distribution guidance for TY-24/25 is 22.5cps, targeting 3%-7% annual DPS growth, supported by inflation-linked TIC and NECAP investments.

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

• DBI is progressing feasibility and commercial discussions for the 8X Project, which could expand terminal capacity to 99.1Mtpa.

• Focus areas include organic revenue growth, capacity optimization, asset diversification, and maintaining investment grade credit rating.

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