CHI - Channel Infrastructure Ltd (NZR)

[Sideshow Bob]

Refining NZ and FFI to study green hydrogen - NZX, New Zealand’s Exchange

efining NZ and Fortescue Future Industries (FFI) have today signed a Memorandum of Understanding (MOU) to study the feasibility of production, storage, distribution, and export of industrial-scale green hydrogen from Marsden Point.

The MOU with FFI is part of the ongoing work already signalled by Refining NZ on identifying repurposing opportunities for Marsden Point, once refining operations cease and Refining NZ makes its transition to Channel Infrastructure from April 2022. Work on the study will begin early in 2022.

Commenting, CEO Naomi James said:

“Channel Infrastructure’s vision is to be New Zealand’s leading independent fuel infrastructure company, and that means investigating potential opportunities in addition to our core business of operating the fuel import terminal. The potential of green hydrogen to support New Zealand’s energy transition is huge if commercial and technical challenges can be solved, so we are delighted that FFI has chosen to partner with us to investigate what might be possible in years to come.”

The study, which will be undertaken in phases covering both commercial and technical feasibility, will investigate whether the Marsden Point site and facilities that will not be required for the import terminal, might be suitable for green hydrogen production.

- ENDS -

[Wai Wai]

NZR is the cheapest listed infrastructure asset on NZX
Fill your boots before it gets swallowed up

[SailorRob]

NZR is the cheapest listed infrastructure asset on NZX
Fill your boots before it gets swallowed up

Wai Wai, for those not as clued up as you, could you please run us through the basic numbers?

How much debt will the entity carry? What do you anticipate net profit to be and in which year?

How do you see conversion costs playing out? And ongoing costs for actual demolition of existing plant?

How many cents per share dividend do you expect and in which year? After the dilution from recent issue and issuance of managments shares?

What's happening with Wiri in 2025?

How do you define cheap, you mean based on the discounted future cash flows the 'asset' will provide to the equity?

Thanks in advance.

[RTM]

Refining NZ infrastructure support Govt's biofuel mandate
https://www.nzherald.co.nz/northern-...AXIVRYU4XA6QU/

Future sounds rosy !
🤪

[Waikaka]

Wai Wai, for those not as clued up as you, could you please run us through the basic numbers?

How much debt will the entity carry? What do you anticipate net profit to be and in which year?

How do you see conversion costs playing out? And ongoing costs for actual demolition of existing plant?

How many cents per share dividend do you expect and in which year? After the dilution from recent issue and issuance of managments shares?

What's happening with Wiri in 2025?

How do you define cheap, you mean based on the discounted future cash flows the 'asset' will provide to the equity?

Thanks in advance.

Happy to help again,

Total conversion costs might be ~$200-220m over 5-6 year period, ~70% expected to be spent in 2022.

Dividends might restart as soon as late 2023/24.

It is cheap because it has an irreplaceable deep water port, land, refinery to AKL pipeline and tanks that will all generate revenue and have an intrinsic value. The business model is now a lot more stable and well and truly makes it an infrastructure company.

While conversion costs and other variables may change I am still fairly confident that in 5 years it will be paying me dividends.

[Wai Wai]

Sailor Rob
Todays announcement and presentation should answer most of your questions
Fill your boots while ACC remains the only seller (as they have been from about 44cents upwards)

[SailorRob]

Sailor Rob
Todays announcement and presentation should answer most of your questions
Fill your boots while ACC remains the only seller (as they have been from about 44cents upwards)

I've been away sailing. Haven't read it yet. Has maths changed since I've been gone, or is one and one still two?

As you correctly pointed out, Waikaka didn't answer a single question. I will study the announcement and give a full rundown over the next few days.

Management will be happy they've been buying so many shares.

Oh wait.

[Nor]

I see a shortage of diesel is predicted due to the Russia Ukranium business. I mean Ukrainian. Who are we counting on to be nice enough to prioritise our supplies? Is this shut down irrevocable now? By which I don't mean shareholder votes etc but has actual destruction started?

[SailorRob]

I see a shortage of diesel is predicted due to the Russia Ukranium business. I mean Ukrainian. Who are we counting on to be nice enough to prioritise our supplies? Is this shut down irrevocable now? By which I don't mean shareholder votes etc but has actual destruction started?

I shut down the last Crude distillation unit last night. So we're no longer boiling oil. As I type we're pumping out the last levels and flushing etc. One unit is still running and will be dead within 24 hours. The 'destruction' has not started but soon reactors will have their caytalyst unloaded etc. We're about 2 months away from actual physical destruction, cutting up etc.

[Nor]

OK. There is a lot of comment in the news that globalisation is dead.