Dalrymple Bay Infrastructure Ltd. · ASX:DBI
Dalrymple Bay Infrastructure — FY2023 Earnings Presentation
32 slides from Dalrymple Bay Infrastructure's earnings presentation, Feb 26, 2024
Slide 1: 2023 Full Year Financial Results – Investor Presentation (ASX Announcement)
ASX Announcement 26 February 2024 2023 Full Year Financial Results – Investor Presentation Dalrymple Bay Infrastructure Limited (ASX:DBI) (“DBI” or “the Company”) releases today the attached Investor Presentation of its 2023 Full Year Financial Results for the period ended 31 December 2023. -ENDS- A
Slide 2: Investor Presentation 2023 Financial Results
Investor Presentation 2023 Financial Results
Slide 3: DBI − essential infrastructure for a world in transition
DBI − essential infrastructure for a world in transition Dalrymple Bay Infrastructure (DBI) through its foundation asset, the Dalrymple Bay Terminal (DBT), aims to provide safe and efficient port infrastructure and services for producers and consumers of high quality Australian metallurgical coal ex
Slide 4: Today's presenters and agenda
Today’s presenters and agenda 01 FY-23 Financial overview 02 Stable and predictable cashflows 03 Financial Performance 04 Growth Opportunities Stephanie Commons Jonathan Blakey Acting Chief Executive Officer & Chief Commercial & Chief Financial Officer Sustainability Officer 05 Sustainability and ES
Slide 5: FY-23 financial overview
FY-23 financial overview EBITDA1 Debt Tenor2 Distributions Growth TIC Rate $261.3m 7.7 years 20.8 cps $280m $3.44/t -1.1% vs FY-22 +1.3 years vs FY-22 +8.4% vs FY-22 of capital projects 8.4% uplift in TY- commenced in FY-23 23/24 vs TY-22/233 1. FY-22 EBITDA has been normalised by reversing the $3.6
Slide 6: FY-23 Operational and ESG highlights
FY-23 Operational and ESG highlights 61.1mt 71% 23 21 Countries serviced by Coal mines in the Bowen Coal exported Of FY-23 coal exports exports though DBT coal basin serviced by DBT in FY-23 were metallurgical coal terminal DBT’s new electricity Zero Zero arrangements with 99% Environmental fataliti
Slide 7: Stable and predictable cashflows
Stable and predictable cashflows 6
Slide 8: Stable and growing revenue profile
Stable and growing revenue profile TIC revenue is not impacted by: Resulting in: • Coal throughput or prices – due to take-or-pay contracts • Predictability of cashflows • Force Majeure events1 • EBITDA growth expected to outpace inflation with inflation-linked Base TIC and organic • Customer Defaul
Slide 9: Growth in revenue leads to growth in distributions
Growth in revenue leads to growth in distributions FY-23 Distribution • FY-23 distributions totalling 20.8 cps in line with previous guidance (FY-22: 19.2 cps). • Approximately 8.4% growth in distributions compared to the prior financial year (FY-22: 6.6%). • FY-23 FFO payout ratio of 73.1% (FY-22:
Slide 10: Financial Performance
Financial Performance 9
Slide 11: Profit and Loss
Profit and Loss For FY-23 DBI reported net operating profit after tax of $73.9m, up 7.1% on FY-22 Profit & Loss, A$ million Note FY-23 FY-22 STATUTORY 1 TIC Revenue TIC revenue 1 278.8 281.7 The negotiations of access charges applicable from 1 July 2021 under the light- Handling revenue 320.9 297.4
Slide 12: Cashflow statement
Cashflow statement FFO impacted by higher rates on refinanced debt and taxable gains on repayment of debt TIC Revenue Cashflow, A$ million Note FY-23 FY-22 The negotiations of access charges applicable from 1 July 2021 under the light- 1 handed regulatory framework were completed in October 2022. TI
Slide 13: Balance sheet
Balance sheet DBI maintained an investment grade balance sheet with funding secured for substantial NECAP growth pipeline Balance Sheet A$ million Note 31-Dec-23 31-Dec-22 Cash 1 71.1 192.5 Financial assets 2 491.1 140.7 1 Cash Other current assets 67.7 60.0 Total current assets 629.9 393.2 The 31 D
Slide 14: Investment grade balance sheet
Investment grade balance sheet Investment grade credit profile with a weighted average tenor of 7.7 years and diversified funding sources1,2 Funding Source1,2 • ~$2.70 billion of total limits of which ~$2.16 billion was drawn at 31 December 2023 (By Facility Limit, %) • Weighted average tenor of 7.6
Slide 15: Credit rating overview
Credit rating overview DBI1 maintains two investment grade ratings with Stable Outlooks Key Credit Rating Factors3 Last rating update 19-Mar-23 06-Feb-24 Competitive position • The most competitive common user coal terminal serving the central Bowen Basin in terms of Rating1 BBB / Stable BBB- / Stab
Slide 16: Growth Opportunities
Growth Opportunities 15
Slide 17: Growth opportunities
Growth opportunities The long-term resilience of DBT provides the opportunity to build on existing competencies to develop a portfolio of assets DBI core competencies Organic and external growth focus 01 Ability to navigate complex regulatory situations Organic growth opportunities • DBT NECAP proje
Slide 18: Organic growth − Non-Expansion Capital Expenditure (NECAP)
Organic growth − Non-Expansion Capital Expenditure (NECAP)1 Over $500m in NECAP in the decade to 2031 will drive growth via an annual uplift in TIC charges Historic NECAP Spend ($m)2 Future NECAP Spend • NECAP spend required over the decade to 2031 expected to be over $500m 37.3 38.5 34.8 33.6 31.9
Slide 19: Organic growth opportunity – 8X Project
Organic growth opportunity – 8X Project Headline Features Optimisation Characteristics Status • 8X is an incremental optimisation project of • The 8X Project: • All primary environmental approvals secured the existing terminal • Increases storage volume by 20% without • QCA has ruled the costs of 8X
Slide 20: Hydrogen studies
Hydrogen studies A funding agreement to complete feasibility studies agreed between DBI and three other consortium partners was signed on 23 February 2022.1 Dalrymple Bay is ideally positioned for the export of new energy products given the port of Hay Point’s deep-water nature, abundant nearby land
Slide 21: Sustainability and ESG
Sustainability and ESG
Slide 22: Emissions reporting
Emissions reporting Based on the operational control approach used for the purposes of emissions reporting, and in accordance with the GHG Protocol guidelines, DBI developed its first emissions inventory for TY-21/22 (baseline year) and TY-22/23. DBI has worked with industry experts to determine its
Slide 23: Social and governance highlights
Social and governance highlights Safety, Health & Wellbeing Employee Diversity and Inclusion Community and Partnerships In TY-22/23, DBI refined its risk management DBI established a People and Culture Committee DBI’s Community Investment, Partnership and practices for psychosocial workplace hazards
Slide 24: Strategic Priorities
Strategic Priorities
Slide 25: Strategic priorities over the next 12 months
Strategic priorities over the next 12 Months 1 Delivering organic revenue growth through the implementation of approved NECAP Projects Progressing opportunities to capture long-term Bowen Basin metallurgical coal production 2 via our continued economic assessments of the 8X Project, as part of the F
Slide 26: Appendices
Appendices
Slide 27: Inflation linked revenue uplift
Inflation linked revenue uplift A Terminal Infrastructure Charge (TIC) applies to each tonne of contracted capacity at DBT, with the terminal fully contracted, on a 100% take-or-pay basis, at 84.2Mtpa to 30 June 2028 with evergreen renewal options for customers Base TIC TIC Component1 TY-22/23 TY-23
Slide 28: Climate change initiative roadmap
Climate change initiative roadmap DBI continues to support the objective of finding a pathway to limit global warming to well below 2°C, in line with the Paris Agreement Action Short term Medium Term Long Term Climate risk & Climate related physical risk Other DBI Resilience and transition risk as
Slide 29: Reconciliation of statutory borrowings to drawn debt
Reconciliation of statutory borrowings to drawn debt Borrowings A$ million Note 31-Dec-23 31-Dec-22 1 Fair value adjustments booked on acquisition of DBT Group entities On acquisition of the DBT Entities, a fair value adjustment of $48.4m was Current borrowings 448.0 439.3 recognised. This adjustmen
Slide 30: Debt maturities at 31 December 2023
Debt maturities at 31 December 2023 % of debt that is not limited Drawn1 Undrawn Total1 Weighted average recourse to a particular asset Fully amortising or principal and Year ($m) ($m) ($m) Hedged2 3 interest rate3 ('ring fenced') interest payments Up to 1 year 337.6 - 337.6 4.12% 0.00% Principal re
Slide 31: Glossary
Glossary $ Australian Dollar unless otherwise stated FEL Front-End Loading /t Per metric tonne FFO Funds From Operations calculated as EBITDA less net interest expense and less any cash tax 8X Project Expansion program to bring terminal capacity to 99.1Mtpa Group DBI and its wholly owned or controll
Slide 32: Disclaimer and important notices
Disclaimer and important notices This presentation has been prepared by Dalrymple Bay Infrastructure Limited ACN 643 302 032 (DBI or the Company). Financial data Summary Information All figures in the presentation are Australian dollars ($ or A$) unless stated otherwise. This presentation contains s
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