Channel Infrastructure targets Australian expansion after profit jump

• Channel Infrastructure reported a 56% surge in first-half net profit to NZ$18.2 million.
• The company's shares jumped over 6% following the earnings release and growth plans.
• Growth strategy focuses on expanding liquid fuel assets in key Australian markets.

Channel Infrastructure (ASX:CHI) posted a 56% jump in first-half net profit to NZ$18.2 million as total sales increased 4% to NZ$72.9 million.

The strong performance compares to the prior corresponding period while meeting market expectations for pipeline throughput despite Middle Eastern flight schedule disruptions impacting Melbourne Airport.

Channel Infrastructure stated that it is seeking acquisitions in Australia to broaden its portfolio beyond its current stake in a jet fuel pipeline to Melbourne Airport.

The company noted that an equity raising for a proposed Marsden Point biorefinery is taking longer than anticipated due to the global environment, delaying the final investment decision to likely 2027.

Following the announcement, the Channel Infrastructure share price was up at $2.63.

The business currently holds a 25 per cent stake in the Somerton jet fuel pipeline servicing Melbourne Airport alongside its core fuel import terminal assets in New Zealand.

The proposed Marsden Point biorefinery project involves Qantas and aims to produce urea, fertilisers, biodiesel, and sustainable aviation fuel.