Q2 Conversion Project Update

channelnz.com


NZX RELEASE

13 July 2022

Q2 Conversion Project Update
Channel Infrastructure (CHI), New Zealand’s largest fuel import terminal business based at Marsden Point in
Northland, has today released its quarterly conversion project update for the three months ended 30 June
2022 (Q2 FY22).

As announced at our Investor Day on 4 July 2022, key conversion project highlights for Q2 FY22 include:
• First quarter of terminal operations successfully completed with 19 import shipments received and
discharged;
• Intensive 2-month refinery decommissioning works successfully completed in May;
• Significant workforce transition with over 70% of exiting employees having their next opportunity
before leaving; and
• Conversion costs tracking to budget, with approximately $74 million spent to 30 June 2022.

CEO Naomi James said “We have successfully completed our first quarter of import terminal operations and
following the opening up of New Zealand’s borders are seeing jet fuel demand starting to recover. The most
complex and risky part of the conversion project with the transition from refinery to terminal operations is now
behind us, and the project remains on-plan and to budget.”

Overall, the terminal supplied well over half a billion litres of product to the Auckland and Northland markets.
Jet fuel throughput has increased significantly and is now sitting at around half of pre-COVID demand.

The highest risk phase of the project, being the refinery shutdown and intensive 2-month decommissioning
works, was completed in May – safely, to schedule and budget. The focus for Q3 is on progressing the next
phase of decommissioning works, terminal upgrade works (including changes to increase tanker unloading
rates and commencing the first fire system and secondary containment upgrades) and continued private
storage tank related works.

The extensive workforce transition program continues with significant workforce changes occurring through
Q2, following the refinery shutdown and first phase of the decommissioning being completed. Channel
Infrastructure is targeting for at least 90% of employees securing a job or retraining within 6 months of
leaving, and this is on-track with over 70% having their next opportunity secured before leaving.

Conversion costs are tracking to plan with $73 million spent to 30 June 2022 (31 March 2022: $20 million).
The conversion spend, partly offset with positive cash flows from terminal operations, resulted in an increase
in net borrowings from $173 million as at 31 March 2022 to $215 million as at 30 June 2022.

- ENDS -

channelnz.com
Authorised by:
Chris Bougen
General Counsel and Company Secretary
Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com
+64 21 02363 297

About Channel Infrastructure NZ
Channel Infrastructure is New Zealand’s leading fuel infrastructure company.
Channel Infrastructure owns critical infrastructure, supplying the Northland and Auckland markets, which
make up 40% of New Zealand’s fuel demand and all of the jet fuel to the Auckland International
Airport. Utilising the deep-water harbour and jetty infrastructure at Marsden Point, as well as 280 million
litres of storage tanks, and the 170-kilometre pipeline from Marsden Point to Auckland we receive, store, test
and distribute fuel owned by our customers. Channel Infrastructure’s wholly-owned subsidiary, Independent
Petroleum Laboratories, provides fuel quality testing services at Marsden Point and around New Zealand.
Channel Infrastructure is well positioned to support New Zealand’s changing future fuel needs, with growth
opportunities at the Marsden Point site including additional fuel storage to support fuel security, renewable
electricity supply through the Maranga Ra solar project, and work underway with customers and partners on
biofuel and hydrogen opportunities.
For more information on Channel Infrastructure, please visit: www.channelnz.com