Key Highlights

  • Terminal Infrastructure Charge Revenue rose 3.6% to A$156.5 million in the six months to 30 June 2026.
  • EBITDA rose 4.7% to A$150.5 million, and funds from operations rose 10.2% to A$92.7 million.
  • Statutory net profit after tax rose 14.2% to A$49.2 million.
  • The half-year distribution totals 13.50 cents per security, and expansion works are due for completion by the end of 2026.

How does Dalrymple Bay Infrastructure Limited (ASX:DBI) earn steady income from a coal terminal, and why are its upgrade projects the focus of its latest result? DBI owns the long-term Lease of the Dalrymple Bay Coal Terminal in Queensland, and its half-year result for the six months to 30 June 2026, released on 25 August 2026, showed modest Earnings growth, a higher distribution outlook and a series of expansion works due to be completed by the end of 2026. The structure of the business, rather than the coal price, is what explains most of the numbers.

The central development: the 1H26 result

According to the 25 August 2026 results announcement, DBI reported:

Terminal Infrastructure Charge (TIC) revenue: A$156.5 million, up 3.6%.

Total revenue (excluding interest income): A$433.3 million, compared with A$395.4 million.

EBITDA: A$150.5 million, up 4.7%.

Statutory net profit after tax: A$49.2 million, up 14.2%.

Funds from operations (FFO): A$92.7 million, up 10.2%.

Business model and revenue drivers

DBI is a port infrastructure owner rather than a miner. Customers, which are coal producers, pay the TIC under long-term contracts. The company says the terminal is contracted at 84.2 million tonnes a year on a 100% take-or-pay basis through 30 June 2028, with evergreen renewal options. Take-or-pay means customers pay for contracted capacity whether or not they ship it, so DBI's revenue is less sensitive to coal volumes and prices than a miner's would be. The announcement did not report actual first-half coal volumes.

The TIC is reset annually. For the Tariff year 2026/27, it is A$4.02 per tonne, up 8.1%, made up of a base TIC of A$3.66 and a non-expansionary Capital (NECAP) charge of A$0.35. As approved NECAP projects are completed and added to the asset base, the NECAP charge rises, which is how capital works feed into earnings.

Distributions

DBI guided to distributions of 28.62 cents per security for the 2026/27 tariff year, an 8.5% rise on 26.375 cents in 2025/26. Its long-term target is distribution growth of 3% to 7% a year, and its policy is to distribute 60% to 80% of FFO. Guidance is a forecast, not a promise; it depends on the company completing its capital programme and maintaining funding costs.

The NECAP pipeline

DBI has A$370.6 million of committed NECAP projects still to be added to the asset base, of which about A$231.8 million had been spent. The two largest are Shiploader 1A (about A$165.4 million) and Reclaimer 4 (about A$115.6 million), which the company says are on schedule and budget for commissioning by the end of 2026. Most committed spend is expected to enter the asset base by 1 July 2027, which management expects to lift the TIC materially from then. The company also flagged opportunities to optimise existing capacity and to assess the larger 8X expansion, which is a longer-term option and not a commitment.

Balance sheet

Net Debt was A$2,012.3 million (non-statutory) at 30 June 2026, up 1.9% since 31 December 2025, with statutory net debt of A$1,948.7 million. Debt levels matter because interest costs, not operations, are the main item between EBITDA and distributable cash.

Sector and competitive position

DBCT is one of the major export coal terminals serving Queensland's Bowen Basin, and its customers are metallurgical and thermal coal producers. DBI's position rests on a long lease, take-or-pay contracts and regulation, which together limit direct competition for existing volumes. The trade-off is long-term exposure to coal demand: although current contracts run to 2028 with renewal options, the lasting value of the asset depends on the global outlook for coal, regulation and the willingness of producers to keep contracting capacity.

Risks and upcoming developments

Interest rates and refinancing: high Leverage means funding costs matter.

Project delivery: Shiploader 1A and Reclaimer 4 must be completed on time and on budget.

Contract renewal and coal demand: the 2028 contract expiry date is a longer-term consideration.

Regulation and tariff setting: the TIC is subject to contractual and regulatory mechanisms.

Bond-proxy pricing: securities can fall when yields rise.

Upcoming items include commissioning of the two major projects by the end of 2026, the next quarterly distribution announcements, the NECAP asset base addition on 1 July 2027, and any progress on 8X.