Highlights

  • H1 2026 EBITDA reached $150.5 million, while funds from operations rose to $92.7 million.
  • The half-year distribution was 13.5 cents per security, with 2026/27 distribution guidance of 28.62 cents.
  • Ship Loader 1 and Reclaimer 4 were nearing completion, with key milestones expected by the end of 2026.
  • The current long-term access agreements expire on 30 June 2028, with extension decisions due by 30 June 2027.

Dalrymple Bay Infrastructure Limited (ASX:DBI) owns the Dalrymple Bay Terminal in central Queensland, a metallurgical coal export Facility serving Bowen Basin producers. Its Revenue model is built around contracted capacity, indexed infrastructure charges and long-term access agreements. H1 2026 results showed higher cash-based earnings, while attention now turns to terminal upgrades, funding costs and contract decisions due before the 2028 expiry.

H1 2026 Cash Generation and Distributions

For the six months to 30 June 2026, EBITDA was $150.5 million and funds from operations reached $92.7 million. Terminal Infrastructure Charge revenue increased 3.6 per cent. The half-year distribution was 13.5 cents per security, including a 6.75 cent second-quarter payment, equal to 72.2 per cent of funds from operations and within the stated 60 to 80 per cent payout range. Guidance cited for 2026/27 distributions was 28.62 cents per security.

Contract Structure Brings Stability, but 2028 Matters

The terminal has contracted capacity of 84.2 million tonnes a year under take-or-pay arrangements. Customers reserve capacity and pay the Terminal Infrastructure Charge even when shipment volumes vary, while the charge is indexed to inflation. For 2026/27, the TIC increased 8.1 per cent to $4.02 a tonne. Current long-term access agreements expire on 30 June 2028, with customers due to decide by 30 June 2027 whether to extend for another five years.

Terminal Upgrades and Expansion Options

DBI is progressing several terminal projects. Ship Loader 1, with a reported cost of $165.4 million, was about 90 per cent complete, with handover expected by the end of 2026. Reclaimer 4, budgeted at $115.6 million, was 87 per cent complete with commissioning expected in December 2026. Regular annual expansion Capital spending is guided at $30 million to $50 million.

ADEX could add up to 14.9 million tonnes of capacity, while the access queue stood at roughly 33 million tonnes a year. The queue is not committed contracts, so expansion remains dependent on customer commitments, approvals and the Investment environment for Queensland metallurgical coal projects.

Debt and Funding Costs Remain Important

At 30 June 2026, DBI had $2.35 billion of Debt facilities, including $216 million undrawn, and Liquidity of $261 million. The weighted average debt tenor was 6.3 years. More than 90 per cent of debt was hedged to mid-2027 and more than 80 per cent to mid-2028. The all-in Interest Rate was about 7 per cent, making funding costs an important Factor for funds from operations and distributions.

FY27 Watch Points

Near-term milestones include the handover of Ship Loader 1, commissioning of Reclaimer 4 and further access discussions. Customer decisions ahead of the 2028 contract expiry will shape the medium-term outlook. Other risks include metallurgical coal demand, policy settings, project delays, cost overruns and the timing of returns from expansion capital.

Key Insights

DBI enters the next phase with higher H1 2026 funds from operations, ongoing distributions and major terminal upgrades close to completion. Long-term take-or-pay contracts and inflation-linked charges support revenue visibility, but debt costs and the approaching renewal cycle remain important. Contract retention, capital execution and funding costs will shape the outlook through 2027 and 2028.