Photo: LDR / Northern Advocate / Michael Cunningham
The country's biggest fuel import terminal has seen a near 50 percent jump in interim profit on increased revenue, with the company also announcing a deal to increase jet fuel storage.
Key numbers for the six months ended June compared with a year ago:
- Net profit $16.6m vs $11.4m
- Revenue $69.8m vs $64.4m
- Operating earnings $48.1m vs $43.5m
- Interim dividend 4.4 cents per share vs 4.2 cps
Channel Infrastructure, the former Marsden Point refinery, said revenue rose 8 percent, with private storage fees rising by 59 percent.
It said private and additional storage contributed $8.1 million and operating costs increased 4 percent with Channel benefiting from a new fixed price electricity contract.
Jet fuel demand rose 22 percent and was tracking ahead of forecasts, while diesel and petrol demand was steady.
Chief executive Rob Buchanan said the company had several near-term growth opportunities at Marsden Point.
"We have a critical role to play in providing resilience for New Zealand, and over the past two years we have commissioned over 100 million litres of storage for our customers," he said.
Alongside the results, Channel Infrastructure and Z Energy also announced a significant increase to jet fuel storage at Marsden Point in a 10-year contract.
It would more than double Z's existing storage and provide enough fuel for around 10,000 flights between Auckland and Wellington.
Channel said upgrade works would begin this year and involve "incremental" growth in capital expenditure of $26m to $30m from 2024 to 2026.
The contract would generate revenue of about $55m starting from 2027 when work is scheduled to be completed.
Channel forecast full-year operating earnings to be in the range of $92m to $96m.
The company was cautious about the economic environment and potential costs to respond to the government's fuel security study.