Energy
Channel Infrastructure Nz Limited (CHI)
Channel Infrastructure NZ Limited (ASX: CHI) owns and operates New Zealand's largest independent multi-user fuel import, storage, and distribution terminal at Marsden Point. The company provides critical infrastructure services for the country's fuel supply chain, facilitating the secure delivery of refined petroleum products across the North Island through a stable, fee-based model.
Market Cap
A$1.0B
Shares on Issue
N/A
Price Chart
AI Analysis
Channel Infrastructure completed its strategic transformation from New Zealand's sole oil refinery to a multi-user fuel import terminal in April 2022. This pivot significantly de-risked its business model, shifting from volatile refining margins to stable, contracted revenues derived from the storage and throughput of refined fuels. The company now generates income through long-term service agreements with major fuel companies operating in New Zealand, providing essential infrastructure for national energy security. Its operational performance is primarily driven by terminal utilisation rates and the efficiency of its logistics network.
The growth outlook for CHI is tied to New Zealand's long-term fuel consumption patterns and its critical role in national energy security. Potential catalysts include securing additional long-term contracts with new or existing customers, optimising existing terminal capacity, and exploring opportunities for diversification into lower-carbon fuel infrastructure or sustainable energy solutions as New Zealand transitions its energy mix. The strategic direction focuses on maximising asset utilisation, ensuring operational resilience, and positioning the company to support the country's evolving energy needs through efficient and reliable infrastructure.
Bull Case
- • Transition to a fee-based import terminal model provides stable, predictable revenue streams through long-term contracts, significantly reducing earnings volatility.
- • Position as New Zealand's sole multi-user fuel import terminal grants critical infrastructure status, underpinned by strong demand for a secure fuel supply.
- • Opportunities to expand existing storage capacity or diversify into infrastructure supporting future fuels and sustainable energy solutions as the energy landscape evolves.
Bear Case
- • Long-term decline in New Zealand's fossil fuel demand due to increasing EV adoption and renewable energy initiatives could impact future throughput volumes.
- • Risk of contract renegotiations with major fuel customers, potentially leading to less favourable terms or a loss of key revenue streams upon expiry.
- • Significant capital expenditure requirements for ongoing maintenance, regulatory compliance, and potential future upgrades, which could pressure profitability or require debt financing.
Recent Announcements
Ceasing to be a substantial holder
Change in substantial holding
Becoming a substantial holder
FY25 Results Date and Audio Conference Details
Q4 2025 Operational Update
🚨 Price SensitiveChilean Poultry Holdings Limited (ASX:CHI) reports a significant expansion in production capacity and market reach for its organic poultry products, with plans to enter new international markets by Q4 2table.
FAQs
What does CHI do?
Channel Infrastructure NZ Limited operates New Zealand's sole multi-user fuel import, storage, and distribution terminal at Marsden Point, providing crucial infrastructure for the nation's refined fuel supply chain through a contracted service model.
Is CHI a good investment?
CHI offers a relatively stable, fee-based revenue model derived from essential infrastructure, which can appeal to income-focused investors. However, as a small-cap energy infrastructure player, its long-term outlook is subject to New Zealand's energy transition pace, potential shifts in fuel consumption patterns, and the need for ongoing capital investment.
What drives CHI's share price?
CHI's share price is primarily driven by the stability and duration of its long-term customer contracts, overall fuel throughput volumes at its Marsden Point terminal, and its ability to manage operational costs effectively. Investor sentiment around New Zealand's energy transition, interest rate movements, and any strategic announcements regarding future growth or diversification also play a significant role.
Key Metrics
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