DBI Raises Terminal Charges 8.1% and Distribution Guidance 8.5% for FY27

Terminal Charges Set to Climb Amid Capital Investment

Dalrymple Bay Infrastructure Limited (ASX:DBI) has unveiled a forecast Terminal Infrastructure Charge (TIC) of approximately $4.02 per tonne for the 12-month period starting 1 July 2026 (TY-26/27), marking an 8.1% rise from the previous year. This increase is primarily driven by a 4.1% boost in the Base TIC, indexed to Australian CPI, and a near doubling of the Non-Expansionary Capital Expenditure (NECAP) charge to $0.35 per tonne, reflecting $97.8 million of commissioned capital projects added to the asset base. The Queensland Competition Authority (QCA) levy is expected to remain negligible.

The Dalrymple Bay Terminal (DBT), the world's largest metallurgical coal export facility, remains fully contracted on a 100% take-or-pay basis at 84.2 million tonnes per annum through to June 2028, underpinning the stability of DBI's revenue stream. The NECAP program, which includes projects like Shiploader 1A and Reclaimer 4, continues to be a key driver of organic growth, with committed capital projects totalling approximately $429.6 million as of December 2025. This capital expenditure is expected to further increase the NECAP asset base by about $300 million in the following year, supporting future TIC uplifts.

Distribution Guidance Reflects Confidence in Cashflow Growth

Alongside the TIC increase, DBI has raised its distribution guidance for TY-26/27 to 28.62 cents per stapled security, an 8.5% uplift on the prior year’s guidance of 26.375 cents. This follows a 7.7% step-up in distribution guidance announced earlier for TY-25/26, reflecting a sustained commitment to returning between 60-80% of Funds from Operations (FFO) to securityholders. The company reaffirms its target distribution growth rate of 3-7% per annum, subject to market conditions and business developments.

DBI's Q1-26 distribution of 6.750 cents per security was confirmed as per prior guidance, comprising an unfranked dividend and a partial repayment of loan notes attached to the stapled securities. This steady distribution performance aligns with DBI’s low-risk business model and predictable cashflows supported by long-term contracts.

Strategic Focus on Growth and Balance Sheet Strength

DBI’s Managing Director Michael Riches highlighted the company’s strong FY-25 results, with EBITDA rising 5.2% to $294.3 million and FFO up 10.6% to $173.3 million, excluding one-off refinancing costs. The December 2025 refinancing raised $1.07 billion to repay higher-cost debt, substantially lowering interest expenses and enhancing balance sheet flexibility. This was complemented by a successful $350 million Australian Medium-Term Note issuance, which was oversubscribed by more than 2.5 times, underscoring investor confidence in DBI’s credit profile. These financing moves support ongoing NECAP projects without increasing leverage, as detailed in the recent $350m Bond with Strong Investor Backing and Cuts Debt Costs by $75m announcements.

Looking ahead, DBI plans to complete key NECAP projects on time and on budget, optimize existing terminal capacity, and advance the 8X expansion project that could add up to 14.9 million tonnes per annum of capacity incrementally. The company is also exploring diversification opportunities aligned with its risk profile and competitive advantages, while maintaining a strong focus on safety and sustainability, having achieved the highest Safety Citizenship Status in 2025.

Board Changes and Governance Updates

The 2026 Annual General Meeting saw the re-election of Dr Eileen Doyle and the election of Mr Thomas Laidlaw to the board, both receiving strong shareholder support. The governance transition follows the exit of major shareholder Brookfield Infrastructure Partners L.P., which increased liquidity and led to DBI’s inclusion in the S&P/ASX 200 Index. The board is actively progressing succession planning to further strengthen its expertise.