DBI H1 2025: 13.8% FFO Rise, 9.3% Distribution Increase, $405.5m Capex Underway

Stable Foundations and Financial Strength

Dalrymple Bay Infrastructure Limited (DBI), operator of the world’s largest metallurgical coal export facility, Dalrymple Bay Terminal (DBT), has delivered a solid first half performance for 2025. The company’s results underscore the resilience of its low-risk, take-or-pay contract model, with all terminal capacity fully contracted through to 2028. This model ensures predictable revenue streams, supported by inflation-linked pricing and strong force majeure protections.

DBI reported a 13.8% increase in Funds From Operations (FFO) to $84.1 million compared to the same period last year, alongside a 9.3% rise in distributions to securityholders, now at 11.75 cents per security. EBITDA also grew by 5.3%, reflecting disciplined cost management and operational efficiencies.

Capital Investment and Growth Optionality

Central to DBI’s strategy is its ongoing commitment to capital expenditure aimed at maintaining and enhancing terminal capacity. The company has $405.5 million committed to Non-Expansion Capital Expenditure (NECAP) projects, which include major asset replacements and sustaining investments. These projects are expected to contribute to an uplift in the Terminal Infrastructure Charge (TIC) by approximately $0.63 per tonne by mid-2027, translating into incremental revenue of around $53 million.

Beyond NECAP, DBI is advancing the 8X expansion project, which aims to increase terminal capacity from 84.2 million tonnes per annum (Mtpa) to 99.1 Mtpa. The feasibility study (FEL3) has been completed, with all primary environmental approvals secured and conditional access agreements signed by prospective customers. The expansion, expected to be socialised across existing and new customers, will come with a higher charge than the current TIC, reflecting its capital intensity and enhanced capacity.

Financial Discipline and Credit Profile

DBI maintains a strong investment grade credit rating from both S&P and Fitch, supported by a conservative debt profile and significant liquidity. As of June 30, 2025, drawn debt stood at A$1.82 billion with undrawn facilities of A$510 million, providing ample capacity to fund committed capital projects. The company’s weighted average debt tenor is 7.44 years, and it is actively managing interest rate risk through a mix of fixed-rate debt and interest rate swaps.

Operating costs are largely passed through to customers, enabling DBI to sustain an EBITDA margin above 90%. This cost structure, combined with stable corporate expenses, supports the company’s target distribution payout ratio of 60-80% of FFO and a distribution growth target of 3-7% per annum.

Strategic Priorities and ESG Commitments

DBI’s strategic focus remains on delivering total securityholder returns through organic growth, selective acquisitions, and maintaining its investment grade credit rating. The company is also exploring diversification opportunities and alternative uses for the terminal.

Environmental, Social, and Governance (ESG) initiatives are integral to DBI’s operations. The company has outlined clear pathways to decarbonisation, including transitioning its vehicle fleet to electric and purchasing renewable energy for its corporate office. Safety performance remains strong, with zero serious injuries reported in the first half of 2025. DBI also continues to engage with local communities through educational and social programs.