Channel Infrastructure (CHI), New Zealand’s largest fuel infrastructure business based at Marsden Point in Northland, has released its financial results for the six-months ended 30 June 2022 (H1 2022), reflecting discontinued operations of the refinery for the three-months ended 31 March 2022 (Q1 2022) and the continued operations of the import terminal for the three-months to 30 June 2022.
The financial results demonstrate improved financial performance under the new operating model, strong EBITDA margin from continuing operations of c.66%, significant cash flows funded two-thirds of conversion spend in H1 2022, net assets up 5%, successful retail bond issue completed in May 2022, bank refinancing underway to reset cost of capital, performance tracking in line with FY22 guidance and FY23 EBITDA now expected to be at the top end of guidance, and strong cash flow increasing confidence in return to dividends in March 2023.
Decommissioning of the plant is now 70% complete, with import terminal operations successfully completed in Q2 2022 and jet fuel demand rapidly recovering to over 50% of pre-COVID levels.
Channel Infrastructure has also made significant progress towards its carbon targets, with 98% reduction in 2019 emissions, 85% reduction in electricity consumption and no natural
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