CHI

[Basil]

Anyone got any thoughts on Channel Infrastructure?
Seems they're doing quite well with the business transition which is on budget.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CHI/407275/389347.pdf
Shares up 52% last year which was no easy achievement in a terrible 2022 for the market.
Amazing how jet fuel demand is projected to grow over the years.

Just been added to NZX50 effective from closing match process on Friday 17 March.
Sometimes that can be good for a decent bounce in the share price, not always.
Recently declared final and special divvy of 7 cps fully imputed.
Disc: Bought a small stake as a punt.  Probably very late to the party but hopefully better late than never.
Average analyst dividend forecast for FY24 and FY25 is 13 cps.
https://www.marketscreener.com/quote/stock/CHANNEL-INFRASTRUCTURE-NZ-6492074/financials/

[Waltzing]

One assumes then that the NZ fleet is not converting to wind / solar power any time soon?

https://www.youtube.com/watch?v=A7Qsjijbf2o

electric truck fleet from elon coming soon?

https://www.youtube.com/watch?v=83TOHvPQbzw

[Basil]

Its interesting in that presentation how petrol volumes are projected to diminish a lot over the forecast period to 2050 and diesel at a somewhat slower rate but it doesn't look like anyone is thinking there is a more environmentally friendly solution to the enormous energy requirements of jet aircraft with demand for jet fuel projected to grow very strongly all the way out to 2050 and beyond.

[Waltzing]

demand for air lines returning as quickly ...

tourism booking stocks are up...

a break out in travel will occur or has already returned....

Wait till Indian middle glass starts to travel the world and Income increase in the next ten years..

they will replace china as the travel horde crossing the world  and it wont be in balloons...

[Cod]

More future value may come from the government getting involved from a strategic reserve's standpoint.

In November, the New Zealand government announced its package of fuel security measures, and detailed policy design is currently underway focused on increasing the amount of fuels held in country to support greater fuel supply chain resilience. With its tank capacity and pipeline direct to Auckland, Marsden Point is well placed to support the incoming minimum Domestic Stockholding Obligation (DSO) and 70m litre domestic diesel fuel reserve announced by Government to ensure New Zealand's fuel security.

[Waltzing]

 think this stock has got plenty of opportunities to keep producing yield for a while...

going to be interesting to see if Winner() likes the chart.


 

[Cod]

Should Seadra Energy Incorporated (SE) elect to exercise the option, subject to meeting certain conditions, the purchase price for the assets agreed between the parties is US$33.875 million (including the option payments, but prior to any transaction costs), with the balance of the purchase price to be paid in instalments throughout the expected 12-month deconstruction period, with the payments secured by a New Zealand bank-issued letter of credit.

Interesting update from CHI, I had wondered when they were going to sell off the bits.

[Cod]

Steady as she goes.

You cannot view this attachment.

[kiwi2007]

CHI has announced that it plans to issue a new 6-year senior bond .

The bonds have a minimum interest rate of 6.75% which will be fixed for the 6 years.

Is this weighing on the price of the shares I wonder? I know they're paying a decent dividend but a more or less guaranteed 6.75% paid every quarter may tempt potential investors away from the shares themselves?   

[Cod]

Coalition Agreement
New Zealand National Party & New Zealand First.

Investigate the reopening of Marsden Point Refinery. This includes establishing a Fuel Security Plan to safeguard our transport and logistics systems and emergency services from any international or domestic disruption.

I wonder what this will do to the share price, could go either way.

[Auto Rower]

I don't think anything will happen as far as reopening ,its been left to long & building new would be cheaper & more cost effective .
 Share price who knows not for me at this high

[Henry Filth]

In the UK, they're closing the Grangemouth refinery in Scotland to re-purpose it as a fuel import terminal. Maybe there'll be some gear going cheap there?

[lorraina]

Bought my holding at $1.50 last week.Wife's holding yesterday at $1.49.......Bugger..lol
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CHI/423451/409509.pdf

[Basil]

Didn't Winston Peter's really want the oil refinery reinstated?  I believe the coalition are looking into the possibility of doing so but how on earth does that fit with CHI's current plans and how might the Govt go about progressing a reversal of Labour's appalling mistake? 

Are we to reply on very low-grade bitumen undermining any chance of fixing our roads up properly and fuel that's sometimes of questionable quality and at extraordinarily high refinery margins from Asia refineries forever and a day? 

Can't help wondering how this is going to play itself out in the years ahead but cancelling the ludicrously expensive inter islander ferry upgrade is a good indication of sensible fiscal discipline showing that now the adults are in the room running the show, they will take a sensible approach towards directing available funds towards critical infrastructure projects and I would think restoration of proper refinery capacity is a great example of one that must be progressed sooner rather than later.

[Ricky Bobby]

Pretty quiet on the results team... special Div and everything going to plan. Loving the free cash flow! Not a holder but interested...