Table of Contents
What changed
FY22 is the first full period under the new import-terminal model, so headline revenue is not like-for-like with the refinery-era FY21. Continuing-operations revenue was $88.2m, PBT swung to $23.1m from -$765.1m, and NPAT reached $12.0m against a prior loss of $552.6m (the FY21 loss was dominated by refinery impairments). Continuing-operations NPAT of $16.6m was partly offset by a $4.6m after-tax loss from the refinery discontinued operation. EBITDA was $57.5m.
The cash picture moved in the opposite direction. Operating cash flow was an outflow of $14.1m versus an inflow of $34.7m in FY21, capex stepped up to $59.1m from $33.4m, and pre-lease free cash flow was -$73.3m versus a disclosed +$3.2m. Cash on hand fell to $2.4m from $16.1m, gross borrowings rose to $259.6m from $199.7m, and net debt/EBITDA moved to roughly 4.5x from 2.5x. A fully imputed dividend of 7.0c per share (5.0c final plus a 2.0c special for nine months of terminal operations) was declared, versus nil in FY21.
What matters
- Business model reset, not organic growth. Continuing revenue is a new baseline, so the PBT/NPAT swing is a reclassification of the business rather than margin expansion. Segment disclosure implies Infrastructure carries an adjusted EBITDA margin of ~63.6% against ~38.9% for the residual Oil Refining segment — the mix shift is the key earnings-quality signal going forward.
- Leverage is materially higher at a more cash-consuming point of the cycle. Net debt of ~$257.2m against $57.5m EBITDA (~4.5x) is a step up even as the business claims to be more stable. The jump was funded by conversion capex, not losses, but the balance sheet is clearly being leaned on.
- The dividend is uncovered on cash. At a 7.0c DPS the payout is ~219% of NPAT and is not covered by pre-lease FCF of -$73.3m. Management has framed this as a reinstatement milestone; sustainability depends on capex normalising post-conversion.
Expectations
No quantitative forward work or earnings guidance was disclosed in the extracted release. Against HY22 shape, the second half carried the majority of revenue and EBITDA (H1 was ~33.8% of full-year revenue and ~34.2% of full-year EBITDA), while H1 NPAT of $17.2m exceeded the full year because the first half still captured refinery-era profits now sitting in discontinued operations. The clean read is therefore a part-year of terminal-only earnings, not a steady-state run rate — the release supports the directional story (first profit, dividend resumed) but does not anchor a forward terminal-only EBITDA number.
Quality of result
Durable elements are the continuing-operations profit signal and the Infrastructure segment's high implied EBITDA margin, which together underpin the dividend decision. Less durable is the NPAT shape: FY22 crosses the refinery-to-terminal boundary, and the $4.6m discontinued-operations drag muddies the full-year number. PBT growth of 103.0% is the cleaner operating read than NPAT given the discontinued item; the effective tax rate of ~28.3% is broadly in line with FY21's 27.8%, so tax is not the distortion.
Cash conversion deteriorated materially: OCF/EBITDA was -24.6% versus +47.6% last year, and working-capital intensity rose on the smaller revenue base (receivable days ~78.6 vs 32.5; inventory days ~20.9 vs 9.0), even though absolute trade debtors and inventory both fell. The result is clearly transition-driven on the cash side — conversion capex front-loaded FY22 — but it does mean the P&L improvement is not yet corroborated by cash.
Unresolved
- What does a steady-state, terminal-only annual EBITDA and maintenance capex profile look like once conversion spend rolls off, and how quickly does pre-lease FCF turn positive?
- How does management intend to fund the dividend through a period when pre-lease FCF is -$73.3m and cash is down to $2.4m — further drawdowns, retained capacity on existing facilities, or new debt?
- At 4.5x net debt/EBITDA, what is the covenant headroom and the gearing glide-path the board is underwriting the dividend against?
- The segment note shows total segment revenue above statutory continuing revenue; a clearer statutory-to-adjusted-EBITDA reconciliation would help confirm the underlying terminal earnings base.
- The "new fuel demand outlook" is referenced but no quantitative long-term volume or revenue target was extracted, so the upside case is not testable from this release.
This briefing cannot assess debt covenants, long-term contract economics with the fuel majors, or management's forward capex and dividend policy because none were disclosed in the extracted material.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $88.2m | $231742m | -100.0% ↓ |
| EBITDA | $57.5m | $72846m | -99.9% ↓ |
| Net profit after tax | $12.0m | −$552629m | +100.0% ↑ |
| Net cash inflow from operating activities | −$14.1m | $34.7m | -140.7% ↓ |
| Final dividend per share | 7.0c | 0.0c | ↑ |
| Profit before tax | $23.1m | −$765060m | +100.0% ↑ |
| Cash and cash equivalents | $2386m | $16069m | -85.2% ↓ |
| Total assets | $946.9m | $1157577m | -99.9% ↓ |
Reference: annolyse.ai/briefings/chi-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Infrastructure | $90.4m | — | $57.5m | n/a |
| Oil Refining | $69.4m | — | $27.0m | n/a |
Reference: annolyse.ai/briefings/chi-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| Effective tax rate | 28.3% | n/m (loss period) | prior loss period |
| OCF / EBITDA (cash conversion) | -24.6% | 47.6% | deteriorated |
| FCF pre-lease | −$73.3m | $3.2m | −$76.5m |
| FCF / NPAT | -612.7% | -0.6% | complementary conversion metric |
| Capex % revenue | 67.0% | 14.4% | — |
| Capex | −$59.1m | $33.4m | −$92.6m |
| Free cash flow | — | $3.2m | — |
| Debtor days | 78.6 | 32.5 | +46.2 days |
| Inventory days | 20.9 | 9.0 | +11.9 days |
| Trade debtors | $19.0m | $20.6m | −$1.6m |
| Net debt | $257.2m | $183.6m | +$73.6m |
| Net debt / EBITDA | 4.48x | 2.52x | Weakening |
| Gross borrowings | $259.6m | $199.7m | +$59.9m |
| Payout ratio vs NPAT | 218.8% | — | — |
| ROE (annualised) | 2.3% | -111.5% | Strengthening |
| HY22 share of FY22 revenue | 33.8% | — | Other half was 66.2% |
| HY22 share of FY22 EBITDA | 34.2% | — | Other half was 65.8% |
| HY22 share of FY22 NPAT | 143.7% | — | Other half was -43.7% |
| Profit from continuing operations | $16.6m | −$552.6m | +$569.2m |
| Discontinued operation after tax | −$4.6m | — | — |
Reference: annolyse.ai/briefings/chi-fy22
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.