Dalrymple Bay Infrastructure (DBI) H2 2024 earnings summary

Executive summary

• EBITDA increased 7.1% year-over-year to $279.8 million, with funds from operations up 11.1% to $156.7 million and net profit after tax rising 10.7% to $81.8 million.

• Coal exports reached 63.0 million tons, with 81% of revenue from metallurgical coal and 71% of exports to Japan, China, South Korea, Taiwan, and India.

• Distributions for FY24 totaled 22.0 cents per security, up 5.8%, with guidance for TY-24/25 raised to 23.0 cents per security, a 7% uplift.

• Capacity remains fully contracted at 84.2 million tons under take-or-pay contracts through at least 2028, eliminating volume and coal price risk.

• No serious safety or environmental incidents reported for the year.

Financial highlights

• Revenue increased to $382.9 million from $320.9 million in FY23, with total income (excluding interest) at $783.8 million.

• EBITDA (non-statutory) was $279.8 million, up from $261.3 million in FY23; EBIT was $239.5 million.

• Net finance costs increased to $132.1 million, mainly due to higher interest on external borrowings.

• Cash and cash equivalents at year-end totaled $70.7 million, with $450 million in undrawn bank facilities.

• Q4/24 distribution was 5.625 cents per security, totaling 22.0 cents for FY24.

Outlook and guidance

• Distribution guidance for TY-24/25 increased to 23.0 cents per security, a 7% uplift, with a target payout ratio of 60-80% of FFO.

• Targeting 3-7% annual DPS growth, subject to market conditions.

• Strategic focus on organic revenue growth, NECAP project delivery, and diversification opportunities.