Channel Infrastructure (NZX: CHI) updates guidance, shares rise

Follow us on Google News:
 Channel Infrastructure (NZX: CHI) updates guidance, shares rise
Image source: © Pryc1969 | Megapixl.com

Highlights

  • Channel Infrastructure’s updated FY23 guidance reflects the Producers Price Index (PPI).
  • The company now expects revenue to be in the range of NZ$125-NZ$128 million
  • Channel also updated its EBITDA guidance to NZ$82-NZ$86 million

New Zealand’s fuel infrastructure company, Channel Infrastructure (NZX:CHI), upgraded its FY23 guidance today (17 November 2022). The company’s updated guidance reflects the Producers Price Index (PPI, and the latest capital expenditure forecasts.

New guidance 

  • Channel said that due to an 8.4% rise in the PPI as announced today (17 November 2022), the FY2023 revenue is expected to be in the range of NZ$125-NZ$$128 million as against the previous guidance of NZ$116-NZ$120 million.
  • Further, it increased its FY23 EBITDA guidance from NZ$76-NZ$84 million to NZ$82-NZ$86 million.
  • The company also increased its indicative dividend range from 8-11 cps to 9-11 cps.

Meanwhile, Stats NZ announced today (17 November 2022) that the Producers Price Index for all industries’ output indexation for 12 months, was 8.4%. This is likely to help the company take the pay level under the Terminal Services Agreement to NZ$106 million in 2023

Further, in addition to the existing private storage contracted and commissioned, Channel Infrastructure has contracted more terminal storage. This is expected to add to the company’s earning base.

Channel Infrastructure  also updated its capital expenditure and operating guidance in order to highlight the jump in electricity prices in FY23 as compared to FY22.

The announcement added that the Channel's cost of funds has gone down with financing costs now expected at the lower end of the previous guidance at 5-5.5%.

Stock update

On 17 November 2022, the stock was trading up by 1.37% at NZ$1.480 at the time of writing.

 

Disclaimer

The content on this website, including, but not limited to, any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (“Content”) is a service provided by Kalkine Media New Zealand Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide financial advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests users seek financial advice from a financial advice provider, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all liability to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without any express or implied warranties of any kind. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit a source wherever it is indicated or is found to be necessary or desirable.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK