Dalrymple Bay Infrastructure reported a 14.2% rise in net profit for H1 2026, underpinned by higher terminal charges and ongoing capital investment, while raising distribution guidance by 8.5%.
- 14.2% increase in net profit after tax to $49.2 million
- EBITDA up 4.7%, FFO up 10.2% on prior year
- Terminal Infrastructure Charge increased 8.1% to $4.02/t
- $370.6 million in capital projects committed, including major shiploader and reclaimer replacements
- Distribution guidance raised 8.5% to 28.62 cents per security
Profit Growth Driven by Terminal Charge Hike and Capital Investment
Dalrymple Bay Infrastructure (ASX:DBI) has delivered a solid half-year performance for the six months ended 30 June 2026, reporting a 14.2% jump in net profit after tax to $49.2 million. The increase was supported by a 4.7% rise in EBITDA to $150.5 million and a 10.2% lift in Funds From Operations (FFO) to $92.7 million, underscoring the resilience of its coal export terminal business.
Central to this growth was an 8.1% increase in the Terminal Infrastructure Charge (TIC), which rose to $4.02 per tonne for the 2026-27 TIC year, up from $3.72 per tonne in the prior year. This uplift reflects inflation adjustments, contributions from commissioned capital projects, and the pass-through of regulatory levies, reinforcing DBI's stable, take-or-pay contract model that covers 84.2 million tonnes of capacity through to 2028.
Capital Projects on Track to Boost Future Revenue
DBI continues to invest heavily in non-expansionary capital expenditure (NECAP) with $370.6 million of committed projects yet to be added to the NECAP Asset Base. Major works include the replacement of the aging Shiploader 1 (SL1) with the new SL1A and the Stacker Reclaimer SR2 with the new RL4 Reclaimer. Both projects are progressing on schedule and budget, with commissioning expected by the end of 2026.
The inclusion of these capital projects into the NECAP Asset Base is expected to increase the NECAP charge component of the TIC by approximately $0.53 per tonne from 1 July 2027, translating into meaningful revenue growth. DBI estimates that every $0.10 per tonne increase in TIC delivers around $8.5 million in additional annual revenue, highlighting the financial significance of these investments.
Balance Sheet Strength and Refinancing Efforts
On the financing front, DBI issued a $350 million five-year fixed-rate bond in March 2026 under a new Australian Medium-Term Note programme, with a coupon of 6.234%. This issuance complements a $1.07 billion refinancing completed in December 2025, which reduced borrowing costs and extended debt maturities. The company subsequently repaid and cancelled a $250 million syndicated term facility in June 2026, further streamlining its debt profile.
Net debt stood at $2.01 billion at 30 June 2026, a modest 1.9% increase from December 2025, reflecting ongoing capital expenditure. The weighted average interest rate on drawn debt was 7.0%, with 90% of debt hedged against interest rate risk and full hedging of foreign currency exposure, maintaining DBI’s investment grade credit rating (BBB/Stable by S&P).
Distribution Growth and Operational Highlights
DBI declared a Q2-26 distribution of 6.75 cents per security, payable in September 2026, bringing the total distributions for H1 2026 to 13.5 cents per security. The company reaffirmed its full-year distribution guidance for the 2026-27 TIC year at 28.62 cents per security, an 8.5% increase over the prior year, consistent with its policy to distribute between 60-80% of FFO and target 3-7% annual growth in distributions.
Operationally, coal exports through Dalrymple Bay Terminal rose to 28.45 million tonnes despite early period disruptions due to heavy rain. Approximately 84% of revenue was derived from metallurgical coal mines, with key export destinations including Japan, South Korea, India, Vietnam, and China.
Safety and ESG Commitments
DBI reported zero fatalities or serious injuries among its employees and contractors during the period, with only two high potential incidents recorded. The company also maintained a spotless environmental record with no reportable incidents. It continues to advance its ESG initiatives, including sustainable procurement practices and community engagement programs focused on education and environmental awareness.
Bottom Line?
DBI’s steady profit growth and disciplined capital program position it well to sustain distribution increases, but investors should monitor progress on major NECAP projects and refinancing outcomes.
Questions in the middle?
- Will the completion of SL1A and RL4 projects on schedule translate into the anticipated uplift in terminal charges?
- How might evolving demand for metallurgical coal impact DBI’s long-term contract renewals beyond 2028?
- What refinancing opportunities could DBI pursue to lower its weighted average cost of debt further?