Annual Report 2022
- business transformed
2 | Channel Infrastructure NZ Limited | 2022 Annual Report - A business transformed |
Welcome To This Report
Annual Report Overview
This 2022 Annual Report outlines the operational and financial performance of Channel Infrastructure NZ Limited, with the results reflecting the continuing operations of the fuels' import terminal for the nine months ended 31 December 2022 and the discontinued operations of the refinery for the three months ended 31 March 2022. The transition to a new business model during the 2022 year limits the comparability of the current financial results with the previous corresponding period. This Annual Report also includes an overview of the Company's Strategy and Corporate Governance Framework and includes the annual Remuneration Report.
In this report, references to "Channel Infrastructure", the "Company", the "Group", "we", "us", "our" refer to Channel Infrastructure NZ Limited (NZX: CHI), unless otherwise stated. All dollar figures are in New Zealand (NZ) dollars unless otherwise stated.
Channel Infrastructure has used non-GAAP (Generally Accepted Accounting Principles) measures when discussing financial performance in this report. The directors and management believe that these measures provide useful information as they are used internally to evaluate business performance, to establish operational goals and to allocate resources. Non-GAAP measures are not prepared in accordance with New Zealand International Financial Reporting Standards (NZ IFRS) and are not uniformly defined, therefore the non-GAAP measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation or considered
as a substitute for measures reported by Channel Infrastructure in accordance with NZ IFRS. The non-GAAP measures Channel Infrastructure has used are EBITDA, EBITDA margin and Normalised Free Cash Flow (FCF). The definitions of these can be found on page 104 of this report.
Reporting Suite
The 2022 Annual Report is published in conjunction with the 2022 Sustainability Report which provides information on our approach, progress and performance in relation to Channel Infrastructure's most material environmental, social and governance (ESG) issues.
The Sustainability Report has been prepared having regard to relevant climate and ESG reporting standards including the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative Standard (GRI): Core Option and is also prepared in accordance with the NZX Corporate Governance Code and ESG Guidance Note.
This Annual Report, the 2022 Sustainability Report and Channel Infrastructure's Governance Statement together form an integrated suite of reports and should be read in conjunction with each other, and where possible, we have drawn links between each. They are all available for download at: www.channelnz.com, along with several underlying documents and policies referred to throughout this report.
Directors' Statement
The Directors are pleased to present Channel Infrastructure NZ Limited's Annual Report and Financial Statements for the year ended 31 December 2022.
This Annual Report is dated 23 February 2023 and is signed on behalf of the Board by:
JB Miller | AM Molloy |
Chair of the Board | Chair, Audit and |
Finance Committee |
Feedback
As always, we welcome your feedback on this report. Please send any comments or suggestions to investorrelations@channelnz.com.
Channel Infrastructure NZ Limited | 2022 Annual Report - A business transformed | 3 |
Contents
About Us | 4 |
2022 Highlights | 8 |
Numbers at a Glance | 10 |
Letter from the Chair | 12 |
Letter from the CEO | 16 |
Letter from the Incoming CEO | 20 |
Our Strategy | 22 |
Board of Directors | 28 |
Corporate Leadership Team | 30 |
Financial Commentary | 36 |
Governance | 44 |
Remuneration Report | 48 |
Shareholder and Bondholder Information | 56 |
Statutory Disclosures | 62 |
Consolidated Financial Report | 64 |
Glossary | 104 |
Corporate Directory | 105 |
4
About Us
Channel Infrastructure NZ Limited | 2022 Annual Report - A business transformed
OUR CRITICAL INFRASTRUCTURE
MARSDEN POINT
OVERSEAS
REFINERIES
Transport fuels refined overseas and imported by our customers into Marsden Point.
IMPORT TERMINAL SYSTEM (ITS)
Channel Infrastructure receives imported refined fuel, owned by our customers to supply 40% of NZ's transport fuels.
Our Import Terminal handles more transport fuels than the 10 terminals in the next three largest ports in New Zealand, combined.
Two deep water jetties capable of berthing extra large refined fuel transport ships (40% larger than vessels at other NZ ports).
LARGEST FUEL TERMINAL IN NEW ZEALAND
280 million litres
of product storage.
New Zealand's largest fuel testing laboratory, IPL, a subsidiary of Channel Infrastructure.
Throughput: Each year we handle enough fuel to fill over 28,300 planes to LA.
More than 3 billion litres
of transport fuels annually.
A COMPANY WITH A STRONG BALANCE SHEET, STABLE EARNINGS AND CASHFLOWS
Long-term customer contracts, with strong credit counterparts bp, Mobil and Z Energy
(100% owned by Ampol).
Contracts with a fixed and variable fee structure which both incentivises utilisation and protects us from significant market disruptions.
PPI indexation of all terminal fees which protects us in an inflationary environment.
Channel Infrastructure NZ Limited | 2022 Annual Report - A business transformed | 5 |
Channel Infrastructure is New Zealand's leading fuel infrastructure company, based at Marsden Point in Northland. We own and operate infrastructure essential to the supply of transport fuels to Northland and New Zealand's largest fuel market, Auckland.
SUPPLY INTO NORTHLAND
PETROL AND DIESEL
Distribution to Northland via
Truck Loading Facility.*
SUPPLY INTO AUCKLAND
170KM PIPELINE
Marsden Point to Auckland pipeline can transport
10 million litres of fuel per day.
Our pipeline is the lowest-carbon supply route for fuels to Auckland, with one-tenth of the emissions compared to the alternative transportation via road.
Marsden Point
WIRI FUEL TERMINAL*
Auckland's fuel storage facility with truck loading facilities and a pipeline to fuel storage at Auckland International Airport.
JET FUEL TO AUCKLAND INTERNATIONAL AIRPORT
Channel Infrastructure is the only supply route for jet fuel directly to Auckland International Airport, which consumes 80% of New Zealand's jet fuel demand.
PETROL AND DIESEL
Our pipeline also supplies petrol and diesel direct to Auckland, New Zealand's largest market, keeping Aotearoa moving.
*Not included in
AucklandChannel Infrastructure import terminal system
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
The New Zealand Refining Company Limited published this content on 20 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2023 02:16:00 UTC.