Channel Infrastructure expands into Australia, eyes ASX listing

Channel Infrastructure NZ Limited has acquired a 25% interest in the Somerton jet fuel pipeline, a critical asset for Melbourne Airport, for A$14.2 million. This investment aligns with Channel's strategy to improve business quality through measured growth in Australasia. The acquisition is projected to be cash flow accretive from FY2026, with organic growth expected from Melbourne Airport's route development and future third runway. The pipeline is operated by ExxonMobil, ensuring a lower-risk market entry.

Concurrent with this expansion, Channel Infrastructure announced progress towards an ASX Foreign Exempt listing, anticipated for early 2026. This move, which follows the Board's determination in August 2025, aims to provide access to a broader pool of institutional and retail shareholders. The primary listing will remain on the New Zealand Stock Exchange (NZX), with initial listing costs estimated at ~NZ$1 million for FY2025.

Channel reaffirmed its FY2025 EBITDA guidance of between $89 million and $94 million and a dividend of between 12.0 and 12.5 cents per share, with the acquisition funded through existing debt facilities. The company also continues to explore opportunities within its Marsden Point Energy Precinct, including additional storage and energy security projects, as well as consolidation along its Auckland Airport supply chain.