Channel Infrastructure unveils new strategy to fuel New Zealand’s future
WELLINGTON, NZ: Channel Infrastructure, a leading energy infrastructure company, has announced its refreshed strategy to pursue growth opportunities and support New Zealand’s decarbonisation pathway.
The company’s chair, James Miller, said that Channel Infrastructure had delivered strong results in the past two years, with a total shareholder return of almost 86%. He credited the company’s successful conversion of the refinery to an import terminal and the commissioning of additional jet fuel storage at Marsden Point as key achievements.
He said that the company was now ready to explore new opportunities that met its investment criteria and customer contracts, while maintaining stable dividends and a shadow BBB+ credit rating.
The company’s CEO, Rob Buchanan, said that the company’s vision was to become a world-class energy infrastructure company. He highlighted the strategic value of Marsden Point and the company’s assets, which made it a unique part of New Zealand’s fuel import system.
He said that the company was developing a proposal to support the government and its customers with their strategic diesel storage objectives and minimum fuel stockholding obligations. He also expressed the company’s ambition to expand beyond Marsden Point and partner with customers on their fuels infrastructure needs.
He said that the most exciting opportunity for the company was New Zealand’s decarbonisation pathway, especially for the aviation sector. He said that the company was ready to leverage its critical role in the liquid aviation fuel supply chain and help lower aviation emissions with liquid sustainable aviation fuel.
He said that this was key to Channel’s future success and that the company was taking a deep look into the decarbonisation pathway for aviation. “We continue to work on how we can play our part to help solve this critical challenge for New Zealand’s future,” he added.
Channel Infrastructure has also today reconfirmed its FY23 guidance, announced a new storage contract (c$9 million of additional revenue across 10 years from 2024 with minimal incremental growth capex) and confirmed it is considering a retail senior bond to replace the listed subordinated notes.
About The Author
