Key Highlights

  • FY2026 EBITDA guidance for continuing operations was AUD 103–108 million in the supplied report.
  • Contracted fuel storage exceeded 410 million litres at Marsden Point.
  • The presentation outlined additional jet fuel, diesel and bitumen storage arrangements.
  • HY2026 net Debt was reported at AUD 346 million, with Liquidity headroom of AUD 93 million.

Channel Infrastructure NZ Limited (ASX:CHI) operates fuel import, storage and distribution infrastructure in New Zealand. On 11 November 2026, the company released an investor presentation outlining its FY2026 guidance, contracted storage arrangements and infrastructure Investment programme. The presentation stated that it contained no new material information.

Reported Developments

The presentation, by CEO Rob Buchanan and CFO Alexa Preston, describes a Business that stores and distributes about 40% of New Zealand's transport fuel, including about 80% of the country's jet fuel. It has more than 410 million litres of contracted storage at Marsden Point and operates a 170 km pipeline to Auckland.

Channel also owns 25% of the Somerton jet fuel pipeline to Melbourne Airport, a stake acquired in November 2025.

FY26 EBITDA guidance for continuing operations sits at $103–108 million. That compares with $97–105 million flagged in May, $95–100 million in February and FY25 EBITDA of $93.4 million. HY26 Revenue was $72.9 million, with HY26 EBITDA of $48.8 million and normalised free Cash Flow of $33.6 million.

The slides list several contracts. A Government diesel storage arrangement of 93 million litres runs until 31 December 2027 and is worth roughly $1.2 million per month. A Z Energy jet storage deal, worth about $55 million pre-PPI over 10 years, was delivered in early July 2026, six months early.

A bitumen Import terminal for Higgins, worth about $57 million pre-PPI over 15 years, is due late in Q4 2026. Channel also highlighted a bp jet and diesel storage contract worth about $130 million pre-PPI over 15 years from Q3 2028, with a project cost of $65–70 million, plus a further storage extension worth about $50 million over nine years from Q1 2028.

At HY26, net debt was $346 million, gearing was 31% and Interest Cover was 5.7x, with $93 million of liquidity headroom.

Operational and Financial Implications

While the company says the presentation contains no new material information, it may offer investors a consolidated view of where Earnings growth is expected to come from. The successive guidance upgrades may suggest new contracts are contributing as planned.

The company said more than 50% of contracted revenue is fixed or capacity-based, excluding the Government diesel contract. This may matter to investors who favour predictable, infrastructure-style cash flows over earnings tied closely to fuel volumes.

Leverage is one area that could draw attention. Net debt to rolling 12-month EBITDA was 3.8x at HY26, and Channel is targeting Credit metrics consistent with a shadow BBB/BBB+ rating.

Its Dividend policy is to pay 70–90% of normalised free cash flow on average over time, so the balance between growth spending and payouts may remain a focus. The longer-term Marsden Point Energy Precinct, with potential for 500–700 million litres of greenfield storage and up to 72 MW of peaking capacity, may also interest longer-term investors.

Upcoming Developments

For FY27, Channel expects a full-year EBITDA contribution of about $9 million from the Z Energy and Higgins contracts and about $14 million from the Government diesel contract. It also flagged additional operating expenditure of $0.7–0.9 million per year from FY27.

The FY27 PPI is expected to be published in November 2026. About $27 million of the $220 million conversion project remains to be spent across H2 2026 and 2027, while the Higgins bitumen terminal is due late in Q4 2026.