CHI - Channel Infrastructure Ltd (NZR)

[SailorRob]

the debt matrix might blow out on bad refining margins making borrowing for those solar projects etc unattractive due to borrowings

More unattractive you mean?

I think the solar farm is some type of separate entity - as far as the debt is concerned anyway.

The crude shipping sanctions are killing the margin at the moment.

'The margin is calculated as the typical market value of all the products produced, minus the typical market value of all feedstockprocessed. The typical market value of products is determined by using quoted prices for the products in Singapore plus the typicalfreight cost to New Zealand plus product quality premia. The typical value of feedstock is determined by using the market value forcrude oil and other feedstock at the point of purchase, plus the typical cost of freight to New Zealand'.

[Sideshow Bob]

New CEO announced. https://www.nzx.com/announcements/346980

Can't see much changing.....

[Rowdy Flat]

New CEO announced. https://www.nzx.com/announcements/346980

Can't see much changing.....

She's got an impressive CV. God knows they need some new blood on board.

[percy]

She's got an impressive CV. God knows they need some new blood on board.

Lets hope she delivers.

[bull....]

Lets hope she delivers.

wouldnt hold your breath , company dominated with self interest

[Waikaka]

Long time lurker first time poster. NZR is on my buy list at the moment.

Pro: long history of dividend payments, stable demand for product, decent discount between price and book value. Significant moat to any competitors. Tank farm, port land and RAP all great irreplaceable assets.

Cons: Leverage is too high, cornerstone shareholders with vested interests, long history of short term CEO's, recent greenwashing ie solar farm.

With a market cap of ~$560 million for a 120kbpd refinery and pipeline etc happy to hold my nose and pick this one out of the gutter.

[macduffy]

Welcome, Waikaka and good luck with NZR. I'm a holder but well aware that the company is run, first and foremost for the major, not just cornerstone, oil company shareholders. Yes, there's been some good dividends in the past, but also some lean years. Not my favourite company but not an absolute dog, IMO.

[Waikaka]

Interesting that in 2014 BP, Mobil, Z-Energy and Chevron held ~65% of the company. With Chevron exiting in 2015 and BP halving its stake in 2017 they now only have 42.6% between them.

I understand that the generous tolling terms help ensure that the refining continues in NZ so has some justification but hope that longer term a slightly more equitable balance can be found.

[SailorRob]

Interesting that in 2014 BP, Mobil, Z-Energy and Chevron held ~65% of the company. With Chevron exiting in 2015 and BP halving its stake in 2017 they now only have 42.6% between them.

I understand that the generous tolling terms help ensure that the refining continues in NZ so has some justification but hope that longer term a slightly more equitable balance can be found.

Waikaka, please look at earnings over the last 10 years and average them out. Look at the free cashflows (or lack of) and see what the CAPEX is spent on. Agree with the strategic assets but look at the income they earn. Look at what's happened to Australian refineries.

[bull....]

and its a asset in its sunset years how long that maybe.