Q2 2023 Conversion Project and Operational Update

channelnz.com


19 July 2023

Q2 2023 Conversion Project and Operational 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
2023 (Q2 2023), combined with a new business operational update.

With the permanent decommissioning of the refinery completed during the quarter, this new hybrid report
format now includes additional information relating to the operational performance of the business over the
reporting period.

HIGHLIGHTS

Terminal and pipeline throughput
• Eighteen import shipments received and discharged during the quarter (2023 YTD: 36).
• Terminal and pipeline throughputs were strong at c.821 million litres in Q2 2023, up 10 million litres
on the previous quarter and 25% higher than Q2 2022 reflecting the post-COVID recovery.
• The increased throughput continues to be driven by a strong aviation demand recovery, with jet
throughput double the previous corresponding period (Q2 2023: 299 million litres; Q2 2022:.146
million litres).
• For the six months ended 30 June 2023, total throughput was 1,630 million litres, tracking in line with
the Envisory (formerly Hale & Twomey)
1
fuel demand outlook for 2023.




1
Refer to page 26 of FY22 Investor Presentation available at: CHI FY22 Investor Presentation

channelnz.com
• A summary of Quarterly Terminal and Pipeline Throughputs by fuel type since commencement of
import terminal operations on 1 April 2022 is included as Appendix I.

Conversion project
• Permanent decommissioning of the refinery process plant completed during the quarter.
• The terminal upgrade and private storage tank conversion works are ongoing and progressing well,
despite the impacts of adverse weather events.
• Conversion costs remain within budget, with c.$170 million
2
spent to 30 June 2023 (31 March 2023:
$145 million), including c.$30 million of private storage costs (31 March 2023: $21 million).
• The remaining c.45 million litres of jet private storage capacity is expected to be commissioned
during Q3 2023, increasing the total Marsden Point terminal capacity to 280ML.
• Net borrowings increased to $295 million as at 30 June 2023 (31 March 2023: $286 million).

Channel Infrastructure will release its HY23 financial results on Wednesday 23 August 2023.

- ENDS -
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 0236 3297

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 studies
underway with partners on hydrogen and sustainable aviation fuel opportunities.
For more information on Channel Infrastructure, please visit: www.channelnz.com

2 Subject to the finalization of the HY23 financial results

channelnz.com
Appendix I – Terminal and Pipeline Throughputs (since 1 April 2022)


Terminal and Pipeline
Throughputs by quarter

2022
ML
3

2023
ML
Quarter 1

Jet

280
Diesel

282
Petrol

249
Total

811

Quarter 2

Jet

146 299
Diesel

275 274
Petrol

257 249
Total

679 821

Quarter 3

Jet

200

Diesel

264

Petrol

258

Total

721

Quarter 4

Jet

244

Diesel

275

Petrol

280

Total

799










3
ML – million litres