Half Year 2026 Dalrymple Bay Infrastructure Ltd Earnings Call Transcript
Key Points
- EBITDA increased 4.7% to $150.5 million and FFO rose 10.2% to $92.7 million in H1 2026, reflecting strong financial performance.
- Distribution per security grew 14.9% to $0.135 for H1 2026, in line with guidance and supported by a stable, low-risk business model with 100% take-or-pay contracts.
- The NECAP program continues to drive organic growth, with $370.6 million in approved projects and an expected $0.53 per tonne TIC uplift from July 1, 2027, underpinning future revenue growth.
- Successfully issued $350 million in Australian medium-term notes, diversifying funding sources at an attractive margin and maintaining an investment-grade BBB rating with strong liquidity of $261 million.
- Access queue for terminal capacity grew to ~33 million tonnes per annum, driven by near-term demand from M&A activity, indicating strong customer interest and potential for future expansion.
- All-in interest rate rose to approximately 7% as of June 30, 2026, up from earlier expectations of 6.5%, due to higher base rates and refinancing costs, increasing finance costs.
- The full ADX expansion project remains a longer-term prospect, with customers delaying major investment decisions due to challenges like royalties, limiting near-term capacity growth.
- Working capital movements were volatile, with a positive $42.9 million in H1 2026 driven by timing of operator invoicing, which is expected to normalize and could reverse.
- Refinancing of USPP notes is not NPV-positive due to high costs of cross-currency interest rate swaps, limiting opportunities to reduce interest costs in the near term.
- Distributions are expected to remain unfranked for the remainder of 2026, with only partly franked dividends anticipated from early 2027, impacting after-tax returns for security holders.
Thank you, and good morning. Welcome to Dalrymple Bay Infrastructure's results for the 6 months ended June 30, 2026, or the first half of 2026 for us. I am Michael Riches, CEO, and with me today is Stephanie Commons, our CFO. Today, we will be providing an update on our financial performance for the first half of 2026, updating the market on the status of our NECAP and organic growth programs, and confirming our strategic priorities for the remainder of 2026. In the first half of the year, we have continued to improve our financial performance and grow distributions to security holders. EBITDA was $150.5 million, a 4.7% increase on the first half of FY '25. Funds from operations, or FFO, was $92.7 million, up 10.2% on the first half of FY '25.
We continued to invest back in the growth of our business with approximately $370.6 million of approved capital projects still to be added to the NECAP asset base. We placed $350 million in the Australian medium-term note market to further
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