The company reported half-year revenue of $72.9m, up 4%, while net profit rose to $18.2m from $11.6m.<\/p>\n
Operating earnings were broadly flat at $48.8m, but Channel said recently completed storage projects would lift earnings in the second half and next year.<\/p>\n
It upgraded full-year ebitda guidance to between $103m and $108m, from the $97m to $105m range given in May.<\/p>\n
The interim dividend was lifted 16% to 7.25 cents a share.<\/p>\n
Channel said it brought an extra 123 million litres of jet and diesel storage into service during the half, increasing in-service storage at Marsden Point by about 40%.<\/p>\n
That included a 93 million litre diesel storage project for the New Zealand Government, which it said was delivered in nine weeks.<\/p>\n
Chairman James Miller said the result showed the company was turning new projects into long-term revenue.<\/p>\n
\u201cWe have upgraded FY26 ebitda guidance for the second time this year, increased the interim dividend by a significant 16%, and delivered significant contracted growth that will contribute to earnings through the second half of 2026 and into 2027,\u201d Miller said.<\/p>\n
Channel also announced a new 15-year contract with bp for more jet and diesel storage at Marsden Point.<\/p>\n
The deal is expected to generate about $130m of revenue over its first 15 years, before inflation-linked increases, with revenue due to start in late 2028.<\/p>\n
Channel expects to spend $65m to $70m from 2026 to 2028 converting existing tanks and related infrastructure for the new storage, using its existing debt facilities.<\/p>\n
Chief executive Rob Buchanan said the increased focus on energy security was opening more chances for Channel to use the infrastructure it already owned.<\/p>\n
The company said full-year contributions from Z Energy jet storage and a Higgins bitumen import terminal were expected to add about $9m to FY27 ebitda, while the Government diesel storage contract was expected to contribute about $14m.<\/p>\n
However, a final investment decision on the proposed Marsden Point Biorefinery is now likely to slip into 2027, with the consortium\u2019s equity raising taking longer than expected.<\/p>\n","protected":false},"excerpt":{"rendered":"The company reported half-year revenue of $72.9m, up 4%, while net profit rose to $18.2m from $11.6m. Operating…\n","protected":false},"author":2,"featured_media":582845,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[54658,138,45456,3468,1702,25619,2442,117,111,139,69,17695,11162],"class_list":["post-582844","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bp","tag-business","tag-channel","tag-deal","tag-infrastructure","tag-lifts","tag-links","tag-new","tag-new-zealand","tag-newzealand","tag-nz","tag-outlook","tag-storage"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/582844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=582844"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/582844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/582845"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=582844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=582844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=582844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}