Marsden Point fuel import operator Channel Infrastructure has upgraded its earnings guidance and confirmed key fuel storage projects are nearing completion ahead of schedule.
In material released for its May 6 annual shareholders’ meeting, the NZX-listed company says its 93 million litre diesel storage facility for the New Zealand Government is on track for completion by May 31, delivered in a compressed timeframe of under two months.
It also expects the Z Energy jet fuel tank to be ready for commissioning in July, six months ahead of schedule, with revenue from the project beginning the same month.
Channel has increased its EBITDA guidance for the 2026 financial year to between $97 million and $105 million, up from previous guidance of $95 million to $100 million.
Board chair James Miller says the upgraded outlook reflects additional revenue from early commissioning of the jet storage project and new diesel storage capacity, offset by uncertainty in fuel demand amid high fuel prices.
“Channel has a proud reputation for delivering large and complex capital projects, delivering financial results in-line with what is promised to our shareholders, safely and reliably operating New Zealand’s largest fuels import terminal and showing New Zealand we can be trusted to keep them moving, particularly when fuel supply chains are under pressure.”
He says shareholders who have held stock since the 2021 transition to a dedicated import terminal have received a cumulative dividend yield of about 50% of the share price at the time.
“The board continues to focus on stable and growing dividends as well as equitable treatment for all its shareholders… While the company has no present intention to do so, if Channel raises more capital for major growth initiatives, the board will use its best endeavours to maintain this pro-rata approach where possible.”
Chief executive Rob Buchanan says the projects strengthen New Zealand’s fuel supply resilience.
“Channel’s infrastructure solutions help make New Zealand’s fuel supply chain more secure, enhancing New Zealand’s resilience to fuel supply disruption and supporting the country’s economy. The Channel team and contractors have proven their ability to deliver when it matters,” Buchanan says.
He says the jet fuel tank will add about eight days of supply capacity once operational, while the Government diesel storage project will deliver around nine additional days of diesel storage.
Channel also updated expectations for its Higgins bitumen import terminal, with revenue now forecast at $57 million over the 15-year contract, up from $45 million, while project costs have risen to between $25 million and $27 million due to an expanded scope.
