Q1 2024 Operational Update

channelnz.com

NZX RELEASE
19 April 2024

Q1 2024 Operational Update
Channel Infrastructure NZ Limited (NZX:CHI) (Channel or Channel Infrastructure) has today released its
operational update for the three months ended 31 March 2024.

OPERATIONAL HIGHLIGHTS

Terminal and pipeline throughput
• Terminal and pipeline throughputs for the quarter ended 31 March 2024 continued to track above
the Envisory fuel demand outlook at c.921 million litres in Q1 2024, up 21 million litres on the
previous quarter and c.13% higher than Q1 2023 (811 million litres).
• 17 import shipments were received and discharged during the quarter (Q1 2023: 18).
• The increased throughput continues to be driven by a strong aviation demand recovery, with jet fuel
throughput up c.38% on the previous corresponding period (Q1 2024: 387 million litres; Q1 2023: 280
million litres).
• Jet fuel demand has shown typical seasonal behaviour (Summer peak demand) but demand has
been stronger than expected with a greater number of flights for the anticipated growth in passenger
numbers, reflected in the lower reported airline load factors. Actual jet fuel throughput for Q1 was
13% above the Envisory forecast compared with 14% for Q4 2023 and 5% for FY23. Management’s
view is that the seasonal peak is now concluded, in line with pre-Covid trends.



• 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.


387
280
280
282
254
249
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1 24Envisory Q1 24Envisory FY24
Outlook
Q1 23Envisory FY23
Outlook
Pipeline and Truck Loading Facility volumes
Million Litres
JetDieselPetrol

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Conversion and private storage update
• Decommissioning and workforce transition is now complete with the remaining conversion work
largely associated with firefighting and bunding upgrades.
• Conversion costs remain within the $220 million budget with c.$169 million spent to 31 March 2024
(31 December 2023: $163 million).
• Private storage growth capex of c$43.5 million spent to 31 March 2024, within budget of $50 million
(31 December 2023: $41 million).
• Net borrowings increased to $333 million as at 31 March 2024 (31 December 2023: $315 million).

- 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 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

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


Terminal and Pipeline
Throughputs by quarter
(million litres)

2022

2023


2024
Quarter 1


Jet

280 387
Diesel

282 280
Petrol

249 254
Total

811 921


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