Dalrymple Bay Infrastructure Ltd
ASX:DBI
Dalrymple Bay Infrastructure Ltd
Dalrymple Bay Infrastructure Ltd (DBI) stands as a crucial artery in Australia's resource-rich landscape, operating as a gateway for coal exports from the renowned Bowen Basin, one of the world's largest coal reserves. Strategically stationed at the Dalrymple Bay Coal Terminal in Queensland, DBI is instrumental in loading coal onto ships bound for markets across the globe. The terminal, leased from the Queensland Government, is equipped with advanced infrastructure, including conveyor systems and berths, assuring efficient and reliable transshipment. Its services are indispensably subscribed to by miners and energy producers who funnel their products through this hub, ensuring steady revenue through long-term contractual arrangements.
Earning its keep, DBI's business model thrives on a regulated pricing framework underpinned by a transparent economic model. The company charges fees for its handling and loading services, which are meticulously determined by throughput volume and ongoing capacity charges, reinforced by regulatory oversight to ensure fair pricing. This arrangement provides DBI with a stable income stream, largely insulated from commodity price volatility. By concentrating on operational efficiency and maintaining robust long-term client relationships, DBI manages to sustain its pivotal role within the coal export supply chain while delivering consistent financial performance.
Dalrymple Bay Infrastructure Ltd (DBI) stands as a crucial artery in Australia's resource-rich landscape, operating as a gateway for coal exports from the renowned Bowen Basin, one of the world's largest coal reserves. Strategically stationed at the Dalrymple Bay Coal Terminal in Queensland, DBI is instrumental in loading coal onto ships bound for markets across the globe. The terminal, leased from the Queensland Government, is equipped with advanced infrastructure, including conveyor systems and berths, assuring efficient and reliable transshipment. Its services are indispensably subscribed to by miners and energy producers who funnel their products through this hub, ensuring steady revenue through long-term contractual arrangements.
Earning its keep, DBI's business model thrives on a regulated pricing framework underpinned by a transparent economic model. The company charges fees for its handling and loading services, which are meticulously determined by throughput volume and ongoing capacity charges, reinforced by regulatory oversight to ensure fair pricing. This arrangement provides DBI with a stable income stream, largely insulated from commodity price volatility. By concentrating on operational efficiency and maintaining robust long-term client relationships, DBI manages to sustain its pivotal role within the coal export supply chain while delivering consistent financial performance.
Revenue & Profit Growth: DBI reported strong first half 2025 results, with TIC revenue up to $151.1 million, EBITDA up 5.3% to $143.8 million, and net profit after tax up 17% to $43.1 million.
Distribution In Line: The company announced total H1 2025 distributions of $0.1175 per security, in line with guidance and reflecting a 69.3% FFO payout ratio.
Predictable Cash Flow: DBI's business model is anchored by fully contracted, inflation-indexed take-or-pay agreements through 2028, providing highly predictable revenues.
NECAP Growth Pipeline: DBI is executing $405 million of NECAP projects, with these investments set to drive future TIC uplifts and revenue growth.
8X Expansion Delay: The large-scale 8X capacity expansion is delayed by 12-18 months due to coal market conditions and regulatory approval timelines; customer engagement on timing now expected in H1 FY26.
Capital Allocation Review: Management is reviewing capital allocation strategy, considering whether to use more debt versus operating cash for future NECAP funding.
Cost & Debt Discipline: G&A expenses decreased 9.2% YoY, net debt/EBITDA reduced to just over 6x, and significant debt headroom remains.
Stable Outlook: DBI reaffirms its DPS growth target of 3–7% per annum and maintains investment-grade credit ratings.
