Q1 2026 Operational Update
15/04/2026 08:34 NZST, GENERAL
Channel Infrastructure NZ Limited (NZX:CHI, ASX:CHI) has today released its operational update for the three months ended 31 March 2026.
Throughput
Approximately 50% of Channel’s contracted revenue is fixed/capacity-based fees, with the remainder calculated in relation to fuel throughput:
• Total fuel throughput for the quarter ended 31 March 2026 was 931 million litres, a 2% increase on Q1 2025:
- Q1 2026 was the highest jet throughput quarter for Channel since Q4 2018 and up 6% year-on-year. Higher year-on-year jet throughput can be attributed to Q1 2025 throughput being lower than usual due to Air New Zealand’s aircraft availability issues. Year-to-date throughput remains broadly in line with Channel’s expectations.
- Petrol and diesel throughput combined for the quarter is broadly in line with the previous corresponding period (Q1 2025) and the Envisory fuel demand outlook. Petrol volume during the quarter was in part impacted by the permanent outage of a petrol tank at Wiri, which is being converted to jet fuel storage.
- Whilst the Iran conflict significantly impacted fuel prices in New Zealand across March, during the month Jet fuel throughput remained strong, broadly in line with anticipated seasonal demand for the quarter, Diesel volume significantly exceeded throughput expectations, and Petrol throughput was above the Envisory forecast.
• 13 import shipments we received and discharged during the quarter (Q1 2025:13).
A summary of quarterly product throughput by fuel type since 1 April 2022 is included as Appendix I.
Growth project and conversion update
Channel continues to work through agreeing the contractual details of the 93 million litres of additional diesel storage with the New Zealand Government and will provide updates to the market as relevant details are confirmed.
The Z Energy jet storage contract remains on track to be delivered in Q3 2026 (originally expected in Q1 2027), generating an additional $5.5 million annual revenue and $55 million (prior to PPI indexation) over the contract term.
The bitumen import terminal construction contract remains on track to be delivered in Q4 2026.
Conversion spend is ~$192 million to 31 March 2026 (31 December 2025: $~196 million) and remains within budget. The quarterly spend is impacted by the return of a cash deposit from the Employment Court following the conclusion of an outstanding litigation matter. The bund upgrade program continues to progress to plan with the final phase of construction continuing through to the end of 2027.
Net borrowings increased to $338 million as at 31 March 2026 (31 December 2025: $330 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