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/
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
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.
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...
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.
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.
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.
Steady as she goes.
Revenue.png
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?
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.
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
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?
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
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.
Pretty quiet on the results team... special Div and everything going to plan. Loving the free cash flow! Not a holder but interested...
I'm not sure if Mobil oil are still selling down their previous 14.1% shareholding or if that's already finished. There's plenty of sell side liquidity for CHI at present this might also be due to the fact that they've effectively cut their dividend albeit only a small amount but last year they paid 7 cents final (ord + special) + supp and fully imputed but this year though they're paying 7.8 cents final there is no supp and no imputatuion meaning overall holders will bank a little less. Even so they are looking like a decent infrastructure income stock.
Craigs,Forbar and Jarden rate CHI as "Out Perform"
Forbar stated Mobil Oil NZ had sold out mid December.
Forbar are right there was a SPH Notice to say Mobil now held 0 shares back in December but Jarden Partners bought them all - was it their intention to keep them all after the 72.6 million block agreement or are they now selling them down? I guess we'll see another SPH if they are.
I'm a holder, if they are going to outperform, great, I look forward to seeing that. Since they announced their pretty decent result and div their share price has fallen but I'm in long so not too worried about little ups and downs.
Quote from: Glenorchy on Mar 01, 2024, 03:56 PMForbar are right there was a SPH Notice to say Mobil now held 0 shares back in December but Jarden Partners bought them all - was it their intention to keep them all after the 72.6 million block agreement or are they now selling them down? I guess we'll see another SPH if they are.
I'm a holder, if they are going to outperform, great, I look forward to seeing that. Since they announced their pretty decent result and div their share price has fallen but I'm in long so not too worried about little ups and downs.
Mention of outperform reminded me a paper about the triumph of mediocrity in investing
I liked this announcement so much I added to my holding.;
Biorefinery proposed at Marsden Point Energy Precinct
Channel Infrastructure NZ Limited (NZX:CHI) announces it has entered into a conditional project
development agreement with Seadra Energy Inc, who is partnering with consortium members Qantas,
Renova Inc, Kent Plc, and ANZ (the "Seadra Consortium"), to develop a biorefinery at Channel's Marsden
Point site. Should the project proceed, the proposed biorefinery could become an anchor tenant for
Channel's Marsden Point Energy Precinct.
On 10 July 2023, Channel announced it had entered into an option agreement with Seadra to purchase
certain decommissioned assets from the hydrocracking complex for US$33.875 million. That option
agreement was due to expire on 30 September 2024, and to date Channel has received US$4.7 million in
non-refundable option payments.
Seadra has informed Channel that following many months of investigation of project alternatives by the
Seadra Consortium, including alternatives that involved the complexity and cost of deconstructing and
moving assets offshore, the Seadra Consortium now considers that leaving the assets at Marsden Point and
utilising them in-situ for a proposed biorefinery is their preferred project option.
Should the project development agreement being announced today become unconditional, it is anticipated
that the proposed biorefinery project at Marsden Point would utilise some of Channel's decommissioned
refinery assets (which would be refurbished and reconfigured), existing tankage, jetties and certain other
infrastructure, as well as approximately 18-20 hectares of land on the site.
In addition, the proposed biorefinery project has been located on the Marsden Point site such that it would
not impact on the proposed footprint for the previously announced proposed e-Sustainable Aviation Fuel
project at our site.
Commenting, Channel Infrastructure CEO Rob Buchanan said:
"Attracting another potential international future fuels project to Marsden Point is further validation of the
unique nature of our strategic site. While there can be no guarantee that these projects will ultimately
proceed, the fact that we have been able to attract two potential projects of this calibre is testament to the
attractiveness of our Marsden Point site for the production of lower-carbon fuels and the inherent value of
our land. Should the Marsden Point biorefinery project proceed, it would create value for shareholders
through the sale of decommissioned assets and revenue from long-term contracts for the use of our land,
and other infrastructure, by the biorefinery. The proposed biorefinery project is just one example of the many
and varied opportunities we see to develop Marsden Point as an energy precinct for New Zealand over the
long term."
Under the new project development agreement, Channel and Seadra will work together to progress the
project to a final investment decision, anticipated by the second half of 2025. If the proposed biorefinery
project proceeds, several key commercial elements have already been agreed in principle, including:
• Channel would sell to Seadra the hydrocracking assets that are the subject of the option agreement
announced on 10 July 2023 for US$33.875m (less the US$4.7m option payments already received;
channelnz.com
• Channel would sell additional decommissioned refinery assets to Seadra for c.US$23m (subject to
satisfactory completion of engineering studies in respect of those assets);
• Channel would lease to Seadra approximately 18-20 hectares of land at Marsden Point for a total
annual rent payment of approximately NZ$6 - 7 million per annum (subject to periodic adjustment)
over 25 years;
• Channel would make available additional tankage, jetty facilities and certain other infrastructure at
Marsden Point for annual fees to be agreed between the parties; and
• The Seadra Consortium would be responsible for the ownership, construction, and operation of the
biorefinery.
The final investment decision to proceed with the Marsden Point biorefinery project will be subject to entry
into final form binding agreements in relation to the above, and completion of a debt raising advised by ANZ.
Channel Infrastructure CEO Rob Buchanan said:
"Channel Infrastructure has considered several options to dispose of the decommissioned hydrocracking
assets and other unused assets on its site. Having undertaken a global sale process for the
decommissioned assets over more than two years, and recognising that disassembling and shipping these
assets offshore creates considerable complexity for prospective purchasers, we are confident that the
proposed Marsden Point biorefinery project provides the best opportunity for Channel to realise proceeds
from this sale process at this time."
Seadra commented:
"After more than 24 months of detailed engineering and other workstreams, the project consortium partners
have selected New Zealand as the best place for the biorefinery project site. Given the world class
infrastructure available at Channel's facilities, and having identified multiple markets for the biofuels
produced, the economics for a domestic advanced biorefinery made the most sense for the consortium."
Qantas added:
"Sustainable aviation fuel will be critical to decarbonising the aviation industry. Qantas has set a 10% SAF
target for 2030 and is investing in the development of SAF production through its $400m climate fund. This
includes early investment in the development of the biorefinery at Marsden Point. New Zealand and the
Pacific are a key part of our network and we've recently announced an increase in our trans-Tasman
services by up to 50% from October 2024."
Renova added:
"As a renewable energy developer and owner-operator, Renova is committed to reducing GHG emissions
from the energy sector, which accounts for 1/3 of global emissions. While continuing to expand our
renewable portfolio, Renova is also exploring other solutions to address the remaining 2/3, and we believe
biofuel is a promising option. The biorefinery at Marsden Point, once realised, will be a significant step in this
effort, and we are excited about the potential of this project."
Seadra's existing option to purchase certain decommissioned assets from the hydrocracking complex will be
extended to enable Seadra to progress and finalise its investigation into the Marsden Point biorefinery
project, and will remain exercisable by Seadra by 31 July 2025 should it ultimately decide to not proceed with
the Marsden Point biorefinery project.
Channel will release more detail on 24 October 2024 about the company's vision for developing Marsden
Point as an Energy Precinct, and how it can accommodate a range of energy project opportunities on its
unique Marsden Point site.
- ENDS -
channelnz.com
Authorised by:
Chris Bougen
General Counsel and Company Secretary
MKTUPDTE: CHI: Refreshed Capital Allocation Framework
Channel Infrastructure NZ Limited (NZX:CHI) is pleased to announce that the
Board has today refreshed its Capital Allocation Framework resulting in the
following key changes: * The dividend policy pay-out ratio has increased
to 70-90% of Normalised Free Cash Flow from 60-70% of Normalised Free Cash
Flow * The Board expects to pay a total FY25 dividend of between 12.0 and
12.5 cents per share, towards the lower end of the policy range (up from 11.0
cents per share in FY24)
Quote from: Cod on May 23, 2025, 10:14 AMMKTUPDTE: CHI: Refreshed Capital Allocation Framework
Channel Infrastructure NZ Limited (NZX:CHI) is pleased to announce that the
Board has today refreshed its Capital Allocation Framework resulting in the
following key changes: * The dividend policy pay-out ratio has increased
to 70-90% of Normalised Free Cash Flow from 60-70% of Normalised Free Cash
Flow * The Board expects to pay a total FY25 dividend of between 12.0 and
12.5 cents per share, towards the lower end of the policy range (up from 11.0
cents per share in FY24)
It was a good meeting. I voted for Karl Barkley to join the Board. He wants to revive Marsden and start refining our own petrol again.
Seaweed looks as though you were the only person who voted for him.?
6. That Mr. Karl Barkley, who is nominated
as a director by a Shareholder of the
Company in accordance with Listing
Rule 2.3.1, be elected as a Director of
the Company.
2,276,601 0.98% 229,785,474 99.02% 831,488
Quote from: lorraina on May 23, 2025, 05:26 PMSeaweed looks as though you were the only person who voted for him.?
6. That Mr. Karl Barkley, who is nominated
as a director by a Shareholder of the
Company in accordance with Listing
Rule 2.3.1, be elected as a Director of
the Company.
2,276,601 0.98% 229,785,474 99.02% 831,488
The Board recommended that shareholders should not vote for him. I went to a meeting last night and he makes a good argument and he spoke loud and clear at todays AGM and as time goes on he will get more support. I was only one of the many shareholders who voted for him. www.cafes.org.nz
Anyone concerned that CHI has a forward PE of 40? Also the divi pay out ratio seems a tad high at >300%??
The company has 1.28 million in cash and 300.67 million in debt.
Been watching CHI since Sharesies podcast had the CEO interview. Lots going on.
I might buy more on the dips. see weed on the other channel mentioned they going to list on the ASX. :)
I am keeping an eye on CHI and have noted the following:
ASX Foreign Exempt listing planned for 2026, with FTSE Global Small Cap index inclusion from September 2025, broadening investor access.
The HY25 results revenue up 1% to $70.2 million, EBITDA up 1% to $48.5 million, dividend up 42% to 6.25 cents.
The Wiri lease expiry and flat jet throughput (due to tourism and aircraft issues) cap short-term growth. Profit decline (not quantified) and increased costs pose risks.
Z Energy jet storage project >50% complete, now due H2 2026 (ahead of Q1 2027), within budget.
The Marsden Point initiatives (biorefinery, e-SAF, Diesel peaker plant) could transform revenue if executed, though timelines (2026-2030) and regulatory hurdles introduce uncertainty.
Evaluating storage to meet the government's diesel stockholding obligation and other commercial opportunities.
Pursuing synergistic acquisitions in New Zealand or Australia, focusing on aviation/renewable fuels markets, leveraging expertise in high-hazard facilities.
Conclusion
Channel Infrastructure is poised for steady growth, supported by a strong HY25 result and strategic projects. A breakout above 2.35 NZD could target 2.50 NZD, while a pullback to 1.80 NZD is possible if earnings concerns persist. Long-term upside hinges on successful execution of the Marsden Point Precinct and expansion plans by 2026-2030.
Congrats to CHI share holders. Went ex div on 8/9/25 and sp up over 40c since then. But don't like the look of the PE.
I notice that the NZ Govt is now proposing to fund LPG import terminal and CHI has just the solution -- If this eventuates more certain revenue and ticket clipping.
https://www.interest.co.nz/economy/135463/taxpayers-may-fund-facility-import-natural-gas-after-government-report-finds-energy