Q4 2023 Operational Update – CORRECTED VERSION

channelnz.com

NZX RELEASE
17 January 2024

Q4 2023 Operational Update
Channel Infrastructure (CHI) has today released its operational update for the three months ended 31
December 2023 (Q4 2023), combined with an update on the conversion project.

HIGHLIGHTS

Terminal and pipeline throughput
• 14 import shipments received and discharged during the quarter (2023 YTD: 70) including New
Zealand’s largest ever finished product import in December on the 250m long LR2 class vessel “STI
Gauntlet” with cargo totaling over 115 million litres of product in one delivery.
• Terminal and pipeline throughputs were strong at c.900 million litres in Q4 2023, up 62 million litres
on the previous quarter and c.13% higher than Q4 2022.
• The increased throughput continues to be driven by a strong aviation demand recovery, with jet
throughput up c.49% on the previous corresponding period (Q4 2023: 365 million litres; Q4 2022:
244 million litres).
• For the 12 months ended 31 December 2023, total throughput was 3,370 million litres, tracking
slightly above the Envisory (formerly Hale & Twomey)
1
fuel demand outlook for 2023 but in line with
management expectations.



• 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
• Conversion project substantially complete with only remaining firefighting and bund upgrade work to
continue to 2026.

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

channelnz.com
• Conversion costs remain within budget ($200-220 million of conversion costs and $45-50 million for
private storage) with c.$205 million
2
spent to 31 December 2023 (30 September 2023: $189 million),
including c.$42 million of private storage costs (30 September 2023: $36 million).
• Net borrowings are unchanged at $315 million as at 31 December 2023 (30 September 2023: $315
million) due to the divestment of c.73,000 carbon credits (NZUs) and the receipt of US$0.5 million
from Seadra Energy Limited to renew its option to purchase permanently decommissioned assets for
an additional six months
3
.

Channel Infrastructure confirms that it will release its FY2023 financial results on Thursday 29 February
2024.

- 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

About Channel Infrastructure NZ
Channel Infrastructure’s vision is to be a world-class infrastructure company, delivering resilient
infrastructure solutions to help meet changing fuel and energy needs.
Channel Infrastructure’s assets are a critical part of the Northland and Auckland fuel supply chain, supplying
around 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 will seek to support New Zealand’s decarbonisation ambitions, by utilising our
strategically-located assets and our expertise in supply chain infrastructure. The Company remains focused
on its future growth opportunities at the Marsden Point site and beyond, 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 finalisation of the FY23 financial results.
3
NZX Announcement 21 December 2023: Extension of option to purchase decommissioned assets.

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


Terminal and Pipeline
Throughputs by quarter

2022
ML
4

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

200 314
Diesel

264 261
Petrol

258 263
Total

721 838

Quarter 4

Jet

244 365
Diesel

275 283
Petrol

280 251
Total

799 900










4
ML – million litres