Channel Infrastructure NZ Limited Analysis

Overview

Channel Infrastructure is New Zealand’s leading independent fuel infrastructure company, based at Marsden Point, in Northland. Channel Infrastructure primarily acts as an import terminal for the fuel needed to power New Zealand’s economy. On behalf of its customers, the company receives, stores, tests and distributes transport fuels safely, reliably, and efficiently to the Northland and Auckland markets.

Performance

The following information was extracted from Channel Infrastructure NZ Limited's Full year results, released 27 February 2026

Channel Infrastructure delivers solid FY25 financial result

Highlights

• Consistent safety performance and a strong underlying financial result delivered in line with guidance

• Marsden Point fuel throughput for Q4 2025 was the highest since import terminal operations began with jet throughput the highest since Q1 2019

• Z Energy jet storage project ahead of schedule, and together with bitumen import terminal remains on track for completion in H2 2026

• Additional storage contract extension signed in August delivering ~$50 million of incremental revenue across the extended nine-year contract period (pre-PPI indexation), commencing in Q1 2028

• Acquired a strategic 25% interest in the Somerton jet fuel pipeline to Melbourne Airport, which recorded the busiest month in its history, with 3.4 million passengers in December 2025

• Committed $30 million to critical infrastructure upgrades across 2026 and 2027 in support of the Marsden Point Energy Precinct redevelopment including relocation of control room and construction of new combined administration building

• Updated Capital Allocation Framework, with increased dividend payout ratio of 70-90% of Normalised Free Cash Flow and broadened target credit metric range to BBB/BBB+

• Listed on ASX in December providing access to a broader pool of institutional and retail investors to support continued growth

• Strong pipeline of growth options progressed during the year, including the Marsden Point Biorefinery project, and commercial storage at Marsden Point. Continue to evaluate strategic acquisition opportunities in New Zealand and Australia

• FY26 EBITDA guidance of $95-100 million, maintenance capex guidance of 8-10% of revenue and normalised free cash flow conversion broadly in line with FY25

• The Board has declared an unimputed ordinary final dividend of 6.75 cents per share taking total dividends for the year to 13.0 cents per share for FY25, representing a dividend payout ratio of 80%