Channel Infrastructure NZ (CHI) Investor presentation summary

Acquisition details

• Invested A$14.2 million for a 25% stake in the Somerton jet fuel pipeline joint venture, funded via existing debt facilities.

• The pipeline is the sole jet fuel supply route to Melbourne Airport, a critical infrastructure asset.

• Transaction is cash flow accretive from FY2026 and aligns with strategic ambitions in New Zealand and Australia.

• Regulatory approval obtained; settlement scheduled for 28 November 2025.

• Funding maintains target leverage of 3–4.5x Net Debt to EBITDA, consistent with BBB/BBB+ shadow credit rating.

Strategic rationale and growth outlook

• The pipeline serves Australia's second busiest airport, with strong growth prospects from route expansion and a planned third runway.

• Operates below maximum capacity, allowing for organic growth as demand increases.

• Operated by ExxonMobil, ensuring reliable and safe management without requiring a local operational presence.

• Embedded growth opportunities exist through infrastructure upgrades and supply chain consolidation.

• Delivers above WACC returns, stable inflation-linked revenues, and supports existing and new customers.

Asset and market overview

• The Somerton pipeline is a 34km asset with a capacity of 16.3 million litres/day, connecting terminals and refineries to Melbourne Airport.

• Melbourne Airport recorded ~2,500 million litres jet fuel demand, 239,000 aircraft movements, and 36 million passengers in 2024.

• The joint venture ownership includes ExxonMobil (37.5%), Viva Energy (18.75%), and bp (18.75%).

• A third runway is expected to be operational by 2031/2032, enabling a step-change in aircraft movements.

• Forecasts indicate significant growth in aircraft movements post-third runway completion.