Q2 2023 Conversion Project and Operational Update

Channel Infrastructure (CHI), New Zealand’s largest fuel import terminal business based at Marsden Point in Northland, has today released its quarterly conversion project update for the three months ended 30 June 2023 (Q2 2023), combined with a new business operational update.

With the permanent decommissioning of the refinery completed during the quarter, this new hybrid report format now includes additional information relating to the operational performance of the business over the reporting period.

HIGHLIGHTS

Terminal and pipeline throughput
• Eighteen import shipments received and discharged during the quarter (2023 YTD: 36).
• Terminal and pipeline throughputs were strong at c.821 million litres in Q2 2023, up 10 million litres on the previous quarter and 25% higher than Q2 2022 reflecting the post-COVID recovery.
• The increased throughput continues to be driven by a strong aviation demand recovery, with jet throughput double the previous corresponding period (Q2 2023: 299 million litres; Q2 2022:.146 million litres).
• For the six months ended 30 June 2023, total throughput was 1,630 million litres, tracking in line with the Envisory (formerly Hale & Twomey) fuel demand outlook for 2023.
• A summary of Quarterly Terminal and Pipeline Throughputs by fuel type since commencement of import terminal operations on 1 April 2022 is included as Appendix I.

Conversion project
• Permanent decommissioning of the refinery process plant completed during the quarter.
• The terminal upgrade and private storage tank conversion works are ongoing and progressing well, despite the impacts of adverse weather events.
• Conversion costs remain within budget, with c.$170 million spent to 30 June 2023 (31 March 2023: $145 million), including c.$30 million of private storage costs (31 March 2023: $21 million).
• The remaining c.45 million litres of jet private storage capacity is expected to be commissioned during Q3 2023, increasing the total Marsden Point terminal capacity to 280ML.
• Net borrowings increased to $295 million as at 30 June 2023 (31 March 2023: $286 million).

Channel Infrastructure will release its HY23 financial results on Wednesday 23 August 2023.

- ENDS -
Authorised by:
Chris Bougen
General Counsel and Company Secretary

Investor Relations contact:
Anna Bonney
[email protected]

Media contact:
Laura Malcolm
[email protected]
+64 21 0236 3297

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Announcement PDF