Q1 2023 Conversion Project Update

channelnz.com


13 April 2023

Q1 2023 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 31 March
2023 (Q1 2023).

Key conversion project highlights for Q1 2023 include:
• Permanent decommissioning of refinery process plant is now in the final stages and will be
completed in Q2 2023;
• 55 million litres of private storage capacity has been commissioned and is now available at Marsden
Point with the remaining capacity expected to be commissioned during Q3 2023; and
• Conversion costs continuing to track to budget, with c.$145 million spent on the project and limited
utilisation of project contingency to date.

CEO Rob Buchanan said “Having now taken over as CEO, I have been extremely impressed by progress
made on the conversion project, which is setting the Company up well for the opportunities we have ahead
of us. New Zealand has been hit by some extreme weather in this quarter, but our critical infrastructure has
proven resilient, with limited impact to conversion activities from Cyclone Gabrielle. While there have been
some schedule impacts due to recent severe weather events, critical work continues at pace to complete the
contracted private storage capacity, helping our customers build greater resilience into the transport fuels
supply chain.”

Terminal and pipeline throughputs remain strong with 810 million litres in Q1 2023 (compared to
approximately 800 million litres in the previous quarter) and continues to be driven by aviation demand
recovery.

The Company is now in the final stages of the permanent decommissioning of refining plant which will be
completed in Q2 2023. As part of the decommissioning and the consequential reduction in the electricity load
at the Marsden Point site, updated and lower transmission costs from 1 April 2023 have now been confirmed
and are in line with assumptions factored into Channel’s earlier 2023 cost guidance. The terminal upgrade
works, and private storage tank conversion works, are ongoing and progressing well with over half of
contracted private storage capacity now commissioned and a further c.45 million litres of jet private storage
is expected to be commissioned during Q3 of 2023.

Conversion costs are tracking to plan with c.$145 million spent to 31 March 2023 (31 December 2022: $126
million), including c.$21 million of private storage costs (31 December 2022: $15 million). Net borrowings
increased to $286 million as at 31 March 2023 (31 December 2022: $257 million).

- ENDS -

Authorised by:
Chris Bougen
General Counsel and Company Secretary

channelnz.com
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 transport 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 Laboratory Limited, 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, and work
underway with customers and partners on biofuel and hydrogen opportunities.
For more information on Channel Infrastructure, please visit: www.channelnz.com