CHI - Channel Infrastructure Ltd (NZR)

[bull....]

Shareholder day at NZR Masden Point tomorrow ... should be an awesome day! =D

Will be good to see the refinery firsthand ... I know a lot of people who have worked there but never actually seen it for myself ...

bummer i missed the announcement been away and so busy i would have definately been a starter ..... hoping they do another one next year

[hogie]

bummer i missed the announcement been away and so busy i would have definately been a starter ..... hoping they do another one next year

Turned out to be an amazing day ... they offered free parking at several Auckland locations and had busses organised to take Shareholders to the Refinery ... we got to see the Refinery firsthand, talk to the management staff, and they talked a lot about the issues that have plagued NZR for the past few months (pipeline rupture, sulpher in the fuel, etc) ... amazing food spread ... they treated us all very well! Was a bit weird being less than half the age of most of the people who attended however =P

All in all I'm very encouraged from this visit and will continue to invest in NZR ... a solid company that does things right ... and they have a lot of great plans for growth in the future as demand increases.

[lawson]

Thanks for the write-up Hogie. Glad you enjoyed the day. I'm happy to hold long term as they pay a good divi. Nice to hear they have plans for growth.

[Sideshow Bob]

Little comment around here in the last month, ahead of Wednesday's announcement. Margins were pretty good for most of last year, and overall processing fee $52m better than 2016. Surely a good chunk of this must fall to the bottom line?

From early January, Craigs were forecasting $97m Net Profit (from $47m 2016 so most of the increased margin following through), $0.31 EPS, $0.21 divvy and price target of $3.81. Since this time price has drifted down about 10%.....

[JoeGrogan]

Little comment around here in the last month, ahead of Wednesday's announcement. Margins were pretty good for most of last year, and overall processing fee $52m better than 2016. Surely a good chunk of this must fall to the bottom line?

From early January, Craigs were forecasting $97m Net Profit (from $47m 2016 so most of the increased margin following through), $0.31 EPS, $0.21 divvy and price target of $3.81. Since this time price has drifted down about 10%.....

That would be spectacular considering the Auckland pipeline incident

[traineeinvestor]

They have major maintenance/improvement projects scheduled for this year. Combined with concerns over the pipeline incident, I would be massively surprised if the dividend was anything remotely close to 21 cents. That said, in my search for value I intend to have another look at this company.

Disc: small shareholding

[Sideshow Bob]

Dividend policy is basically 40-60% of net profit in periods of major capital expenditure, about 60% when no major capex projects on - at the board's discretion.

The pipeline issue was largely dealt with and is a known - perhaps except for their insurance payout. Presumably (maybe/hopefully) Craigs took this into account.

Regardless 2 days to wait. Needs something to stop the drift in the share price.

https://www.nzx.com/announcements/307788

Repairs to the Refinery to Auckland pipeline were completed and operations restored, over the weekend. The first batch of jet fuel starting arriving into Wiri at 10.09 am on Sunday, 24 September 2017 – around two hours ahead of the earliest planned delivery.
CEO, Sjoerd Post commented: “Our thanks go to those agencies who responded to the pipeline leak, to the Government and others for their offers of support, and to our staff and contractors who worked tirelessly to complete the repairs and successfully restore supply into Auckland”.

Based on the actual repair time we have revised down the revenue impact from the initial announcement of $ 10 – 15 million to $ 8 – 9 million. Our first estimation of costs associated with the repairs, recovery and remediation will be in the range of $ 4- 5 million. Therefore, based on our current best estimates, the impact of the incident on the Company’s full year 2017 net profit after tax will be in the range of NZ$ 9 – 11 million.
The Company has insurance cover for business interruption, property and environmental damage amongst others. However, given the limited extent of the currently expected losses and the excesses that apply to these policies, only a limited amount of the losses is expected to be recovered.

[dodgy]

Little comment around here in the last month, ahead of Wednesday's announcement. Margins were pretty good for most of last year, and overall processing fee $52m better than 2016. Surely a good chunk of this must fall to the bottom line?

From early January, Craigs were forecasting $97m Net Profit (from $47m 2016 so most of the increased margin following through), $0.31 EPS, $0.21 divvy and price target of $3.81. Since this time price has drifted down about 10%.....

Hi SSB
I am happy to punt for a 7-10c divi - imputed and would be surprised if it was north of that.
Discl. Have considerable holding and adding.
-dodgy

[Sideshow Bob]

Hi SSB
I am happy to punt for a 7-10c divi - imputed and would be surprised if it was north of that.
Discl. Have considerable holding and adding.
-dodgy

Last year was 9c in total, so 7-10c would give 13-16c for the year. My pick (FWIW) is 12c final, 18c for the year.

[sb9]

Resignation of the Chief Executive Officer



https://www.nzx.com/announcements/314798