Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — FY2024 Earnings Presentation
31 slides from Channel Infrastructure Nz's earnings presentation, Feb 27, 2025
Slide 1: Financial Results
Financial Results Change picture to the same one as the AR cover For the year ended 31 December 2024 Change picture to cover of AR 27 February 2025 1
Slide 2: Highlights and Operating Update
ROB BUCHANAN, CHIEF EXECUTIVE OFFICER Highlights and Operating Update 2
Slide 3: 2024 Financial Highlights – Continuing Operations
2024 Financial Highlights – Continuing Operations Total Revenue EBITDA Growth Capex (Margin %) +7% +9% $95.1m $87.2m -4% $139.8m (68%) $130.7m (67%) $47.0m $66.3m $70.0m $43.6m $30.6m $29.3m $64.4m $69.8m $43.5m $48.1m FY23 FY24 FY23 FY24 FY23 FY24 H1 H2 H1 H2 Total Normalised Free Cash Flow Free Ca
Slide 4: 2024 Highlights
2024 Highlights Strong safety track record maintained Throughput up 3% to 3.5 billion litres, reflecting continued growth in jet fuel demand (up 12% on FY23) and relatively stable diesel and petrol demand Updated Envisory outlook continues to show that Channel’s business will be underpinned by jet f
Slide 5: Key operational metrics
Key operational metrics Process safety incidents1 Throughput Number of ships More Long-Range 6 3.4 b litres 3.5 b litres 70 class vessels due to more Private 2.8 b litres 61 Storage 4 56 2 13% 0 CONCAWE 2 2022 2023 2024 2022 2023 2024 FY22 5 FY23 18% FY24 Tier 1 Tier 2 Total Recordable Case Frequenc
Slide 6: Continued throughput growth
Jet Throughput Diesel and Petrol Throughput Continued throughput growth Million Litres Million Litres 1,404 2,094 2,112 2,079 1,258 Jet Throughput 699 1,076 1,059 1,023 • Despite the current economic environment and jet aircraft 679 730 availability issues, jet fuel demand increased 12% on FY23 and
Slide 7: Proven track record of delivery of capital projects safely, on budget, and on time
Proven track record of delivery of capital projects safely, on budget, and on time Conversion project Private storage Transmix $55 million invested 2021-2027 2021-2025 2024 in Channel’s infrastructure in FY24 13% ✓ Everyone home safely ✓ Everyone home safely 18%safely ✓ Everyone home Safety ✓ Strong
Slide 8: Financial Update
ALEXA PRESTON, CHIEF FINANCIAL OFFICER Financial Update Continuing Operations 8
Slide 9: Strong financial result in line with guidance
Strong financial result in line with guidance Continuing Operations Reported Result FY24 FY23 % 2H24 2H23 • EBITDA up 9% with strong operational cost discipline and 7% ($M) ($M) change ($M) ($M) revenue growth Revenue 139.8 130.7 7% 70.0 66.3 • Continued strong EBITDA margin of 68% (FY23: 67%) Opera
Slide 10: Revenue and Operating Costs
Revenue and Operating Costs Revenue FY24 FY23 % 2H24 2H23 ($M) ($M) change ($M) ($M) • Variable terminal fees up reflecting increase in throughput and PPI uplift of 2.1% partially offset by lower ship visits as customers more Terminal fees – fixed 48.9 47.8 2% 24.5 24.1 efficiently utilise their sup
Slide 11: Strong balance sheet and stable cashflows
Strong balance sheet and stable cashflows FY24 HY24 FY23 Balance Sheet Net debt1 $296m $326m $315m • Net debt decreased from $315 million to $296 million reflecting Liquidity headroom $138m $77m $90m $50 million proceeds from successful December 2024 equity Leverage (vs target 3-4 times) 3.1x 3.4x 3
Slide 12: Investment for resilience and growth
Investment for resilience and growth FY24 FY23 Growth and conversion capex ($m) ($M) ($M) 60 Import Terminal System 4.3 1.9 50 Tank maintenance 8.0 8.6 Total stay-in-business capex 12.3 10.5 40 Growth capital expenditure 29.3 30.6 30 Conversion capex 12.9 25.6 20 Total capital expenditure 1 54.5 66.
Slide 13: Asset revaluation 2024
Asset revaluation 2024 $381 million combined uplift in fair value of import terminal system and unutilised land resulting in NTA of $1.98 per share • Assets held at fair value under NZ IFRS 13. Revaluation policy requires an Net tangible assets (NTA) per share independent assessment of value every t
Slide 14: Guidance and outlook
Guidance and outlook FY25 Guidance Underlying EBITDA anticipated to continue to grow ($M) • Envisory fuel demand outlook1 indicates a 5% increase in throughput for 95.1 89-94 FY25 (impacts less than 50% of revenue). Channel remains cautious based on economic environment and aircraft availability iss
Slide 15: Strategy Update
ROB BUCHANAN, CHIEF EXECUTIVE OFFICER Strategy Update 15
Slide 16: Helping fuel New Zealand’s future to 2050 and beyond
Helping fuel New Zealand’s future to 2050 and beyond OUR VISION World-class energy infrastructure company OUR PURPOSE Delivering resilient infrastructure solutions to meet changing fuel and energy needs OUR STRATEGIC PRIORITIES World-Class High Performance Grow from Support Energy Disciplined Capita
Slide 17: Contracted revenue and throughput
Contracted revenue and throughput Contracted Revenue Outlook ($M)1,2 Marsden Point Throughput (Million Litres) Outlook3 4,000 160 3,500 140 3,000 120 2,500 100 2,000 80 52% 52% 51% 49% Fixed revenue % 48% 47% 47% 47% 47% of total revenue 60 1,500 40 1,000 Contracted Fixed Revenue 20 500 0 0 2024 202
Slide 18: 2024 measures of delivery
2024 measures of delivery STRATEGIC PILLAR MEASURE 2024 TARGET 2024 ACHIEVED 2025 TARGET New Zealand’s infrastructure Safely home, every day Lost Time Injuries Zero Zero Zero partner of choice +4 percentage +5 percentage Diverse and engaged team Lift in employee engagement score Maintain points poin
Slide 19: Growth opportunities secured in 2024
Growth opportunities secured in 2024 Three new growth contracts signed in 2024, with revenues commencing over 20251 to 2027, uplifting annual revenue by ~$11 million by 2027 (total of $120 million (prior to PPI indexation) over a 15-year period) Transmix Z Energy Storage Contract Bitumen (announced
Slide 20: Marsden Point Energy Precinct Concept
SAF Manufacture Expansion (Phase 2) Energy Security Opportunities Future Fuels Manufacturing Opportunities Public Access (Mair Road) Transpower, Northpower Additional Storage Opportunities Lease (to Long-term Tenant) Services for SAF Manufacture Current Facility Gas/Diesel Truck Loading Facility (Le
Slide 21: Fuel Security Study concluded
Fuel Security Study concluded • New Zealand Government’s Fuel Security Study findings released this week. • Cabinet set to consider further options for fuel resilience in New Zealand, including an increase in diesel Minimum Stockholding Obligations from 21 to 28 days (additional ~70 million litres o
Slide 22: Growth and energy resiliency initiatives
Growth and energy resiliency initiatives Capacity peaking project Sustainable Aviation Fuel continues to be a priority focus for Fortescue • Channel has completed a scoping study on a potential diesel • Potential 300MW ~60 million litre e-SAF facility at Marsden peaking option. The project would mak
Slide 23: Potential Seadra biorefinery project
Potential Seadra biorefinery project Currently targeting Final Investment Decision in H2 2025, subject to completion of key workstreams 2025 2026 Seadra workstreams: Detailed listing of decommissioned assets • FEED study for biorefinery plant complete needed for the biorefinery, • Complete plant con
Slide 24: Sustainability targets
Sustainability targets Focus Area Target Progress to date Gender At least 40/40/20 gender representation Females represented 47% of all new recruitment in Representation 2024 Refocused talent search process ensuring diverse talent seen on both sides of the interview table Net Zero Net Zero Scope 1 a
Slide 25: Q&A
SA Channel Q&A
Slide 26: Appendix
Appendix Fa VY
Slide 27: Contracts entered into since Import Terminal Conversion
Contracts entered into since Import Terminal Conversion CAPITAL PROJECT ANNOUNCED PROGRESS FINANCIAL IMPACT CAPEX REVENUE TERM Conversion 29 Nov 2021 • Project 85% delivered to date safely, on- Spent to Dec 24: Fixed fee $45m per 10 years commencing 1 April schedule and remains in budget $186 millio
Slide 28: Debt Profile
Debt Profile Fixed Debt Profile ($M) Debt Maturity Profile ($M) 300 350 Bank Retail bonds 250 300 5.8% p.a. 5.8% p.a. 250 200 200 3.0% p.a. 150 150 3.0% p.a. 6.75% p.a. 100 100 50 50 6.75% p.a. - 0 Dec 24 Jun 25 Dec 25 Jun 26 Dec 26 Jun 27 Dec 27 Jun 28 Dec 28 Jun 29 Dec 29 2025 2026 2027 2028 2029
Slide 29: Discontinued Operations
Discontinued Operations FY24 FY23 • Revenue from discontinued operations principally reflects revenue ($M) ($M) from scrap metal sales Revenue 0.2 6.9 Operating costs (3.8) (4.2) • Operating costs include costs associated with the sale of EBITDA (3.6) 2.7 decommissioned assets, legal costs associate
Slide 30: Glossary
Glossary Net borrowings: Bank borrowings less cash and cash equivalents and fair value hedge movements. Normalised Free Cash-flow: Cash flow from continuing operations less financing costs and stay in business capex. Excludes growth capex and conversion costs. 13% Pipeline availability: Pipeline ava
Slide 31: Important Information
Important Information • This presentation contains forward looking statements concerning the • In light of these risks, results could differ materially from those stated, financial condition, results and operations of Channel Infrastructure NZ implied or inferred from the forward-looking statements
Channel Infrastructure NZ — FY2024 Earnings Presentation on 6ix