Source: Radio New Zealand
Channel Infrastructure’s board chair says the 93-million-litre diesel storage facility commissioned by the government at the Marsden Point facility is on track for completion by end of the month. Alan Squires Photography
Channel Infrastructure has lifted its full-year profit guidance, as a fuel crisis continues to drive demand for its services.
Board chair James Miller told shareholders at Wednesday afternoon’s annual meeting that the 93-million-litre diesel storage facility commissioned by the government at the Marsden Point facility was on track for completion by end of the month.
The Z Energy jet tank was also expected to be ready for commissioning and generating revenue in July, six months ahead of original schedule.
Revenue from the Higgins bitumen import terminal project was anticipated to generate $57 million over the 15-year contract term, compared with a previous estimate of $45m.
The total cost to deliver the project was forecast to be between $25m – $27m, compared with an earlier forecast of between $17m – $21m, given the expansion in the scope and capabilities of the terminal.
Given the work in progress and additional revenue, Miller said Channel Infrastructure’s full year underlying profit guidance had been raised to between $97m to $105m, from $95m to $100m for the year ending in December.
Chief executive Rob Buchanan said the Channel team and its contractors had proven their ability to deliver when it matters.
“We have proven our ability to execute on large capital-intensive projects safely, on time and on budget.”
He said development of the Marsden Point Energy Precinct continued to be the company’s number one priority, followed by adding value along its supply chain to Auckland Airport.
The company was also looking to grow through acquisitions – either in New Zealand or Australia – such as its recent purchase of a 25 percent stake in the Somerton jet fuel pipeline to Melbourne Airport for A$14m.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand