Table of Contents
What changed
Revenue from continuing operations rose to $139.8m (+7%) and EBITDA increased to $95.1m from $87.2m, with throughput up 3% to 3.5 billion litres on jet fuel demand. PBT grew 6.8% to $36.4m, but headline NPAT fell 42.3% to $13.9m because of a $12.1m after-tax loss from discontinued operations (vs a $3.6m discontinued-ops loss in FY23) and a higher effective tax rate of 28.8% vs 19.0%. Profit from continuing operations itself was down 6% at $26.0m.
Operating cash flow rose sharply to $64.9m from $36.7m, capex eased to $52.6m from $63.1m, and normalised free cash flow was $63.4m. Net debt reduced to $298.5m and net debt/EBITDA improved to 3.1x from 3.6x. The final dividend was cut to 6.6 cps (FY23 final: 6.3 cps plus a 1.5 cps special, for a 12.0 cps FY23 total).
What matters
- The NPAT headline is distorted by the discontinued operation, not the core business. PBT growth of 6.8% and EBITDA growth of roughly 9% are the cleaner read. That said, continuing-operations NPAT was also down 6% because of the higher effective tax rate.
- Cash conversion stepped up meaningfully. OCF/EBITDA rose to 68.3% from 42.1%, helped by a $4.4m release of operating working capital (receivable days fell from 49.7 to 35.1). Combined with lower capex, this drove a deleveraging of roughly half a turn on EBITDA.
- The dividend signal is mixed. The 6.6 cps final is covered 2.6x by normalised FCF but is not covered by reported NPAT (payout 178%). The absence of the prior-year 1.5 cps special reduces the total cash distribution for the year even as free cash flow strengthened.
Expectations
No formal FY25 numeric guidance or forward-work balance is disclosed in the excerpt. Management frames the forward story around long-term jet fuel demand, a liquid-fuel decarbonisation pathway for aviation, and a 10-year jet fuel storage contract expected to add about $55m of revenue over its term from Q1 2027, for an incremental investment of $55–66m. That contract is a post-FY26 revenue item and does not underwrite FY25.
Seasonality context: HY24 delivered ~50% of FY24 revenue and EBITDA but 120% of full-year NPAT, implying an H2 NPAT of roughly –$2.7m. Part of that fade is the discontinued-operations loss landing in H2, but the release does not quantify how much of the H2 softness is underlying.
Quality of result
The operating improvement looks real at the EBITDA and cash line, but not all of it is durable:
- EBITDA growth is supported by throughput and pricing in the core infrastructure franchise, which remains effectively a single-segment, asset-intensive business.
- A material share of the OCF step-up is working-capital-assisted: receivable days compressed by ~15 days, releasing about $4.4m. That one-off contribution will not repeat at the same magnitude.
- Capex of $52.6m (37.6% of revenue, down from 48.3%) reflects the tail of prior program spend; the $55–66m growth investment flagged for the new storage contract points to capex intensity staying elevated.
- Free cash flow covers the dividend with room to spare, but ROE fell to 1.7% from 4.8%, reflecting both the NPAT step-down and a much larger equity base ($818.3m vs $499.2m).
Unresolved
- What drove the $12.1m discontinued-operations loss in FY24, and is any further impairment or exit cost still to come?
- Why did the effective tax rate rise from 19.0% to 28.8%, and is that the new run-rate?
- Is the H2 earnings fade purely the discontinued-operations charge, or is there underlying cost or throughput weakness in the second half?
- What is FY25 capex guidance, given the $55–66m incremental investment flagged for the 10-year storage contract, and how is it phased?
- Why was the special dividend not repeated despite stronger free cash flow and lower leverage?
This briefing cannot assess CHI's valuation, as NTA per share and market-price-linked ratios were not provided.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $139.8m | $0.1m | +106876.9% ↑ |
| EBITDA | $95.1m | $0.1m | +108992.5% ↑ |
| Net profit after tax | $13.9m | $24.1m | -42.3% ↓ |
| Net cash inflow from operating activities | $64.9m | $36.7m | +76.7% ↑ |
| Final dividend per share | 6.6c | 7.8c | -15.4% ↓ |
| Operating profit | $56.4m | $0.1m | +108927.8% ↑ |
| Profit before tax | $36.4m | $0.0m | +106671.2% ↑ |
| Cash and cash equivalents | $1.3m | $4.9m | -73.7% ↓ |
| Total assets | $1348.1m | $1.0m | +138390.1% ↑ |
Reference: annolyse.ai/briefings/chi-fy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Infrastructure | $139.8m | $130.7m | — | +0.0pp |
Reference: annolyse.ai/briefings/chi-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| PBT growth | +6.8% | — | cleaner earnings measure |
| Effective tax rate | 28.8% | 19.0% | — |
| OCF / EBITDA (cash conversion) | 68.3% | 42.1% | stable |
| FCF pre-lease | $63.4m | $61.8m | +$1.6m |
| FCF / NPAT | 456.7% | 256.8% | complementary conversion metric |
| Capex % revenue | 37.6% | 48.3% | — |
| Capex | $52.6m | $63.1m | −$10.4m |
| Free cash flow | $63400.0m | $61.8m | +$63338.2m |
| Debtor days | 35.1 | 49.7 | -14.6 days |
| Inventory days | 14.2 | 15.4 | -1.2 days |
| Operating working capital | $18.9m | $23.3m | −$4.4m absorbed |
| Trade debtors | $13.4m | $17.8m | −$4.4m |
| Net debt | $298.5m | $315.8m | −$17.3m |
| Net debt / EBITDA | 3.14x | 3.62x | Strengthening |
| Gross borrowings | $299.7m | $320.6m | −$20.9m |
| Payout ratio vs NPAT | 178.4% | — | — |
| Payout ratio vs FCF pre-lease | 39.1% | — | covered |
| ROE (annualised) | 1.7% | 4.8% | Weakening |
| HY24 share of FY24 revenue | 50.0% | — | Other half was 50.0% |
| HY24 share of FY24 EBITDA | 50.6% | — | Other half was 49.4% |
| HY24 share of FY24 NPAT | 119.6% | — | Other half was -19.6% |
| Profit from continuing operations | $26.0m | $27.6m | −$1.7m |
| Discontinued operation after tax | −$12.1m | −$3.6m | −$8.5m |
Reference: annolyse.ai/briefings/chi-fy24
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.