Dalrymple Bay Infrastructure has guided for a distribution increase of 8.5% in the 2026-27 financial year, with distributions set to rise to 28.62 cents per stapled security from the prior year guidance of 26.375 cps. The announcement, which also includes the company’s Q1-26 distribution of 6.750 cps, reflects stronger earnings power at the coal terminal operator as it passes through higher infrastructure charges to its contracted customers.
The underlying driver is a forecast Terminal Infrastructure Charge of approximately $4.02 per tonne for 2026-27, representing an 8.1% increase from the $3.72 achieved in 2025-26. This rise comprises three components: the base TIC has increased to $3.66 per tonne reflecting a 4.09% CPI-linked adjustment, the NECAP charge has jumped to $0.35 per tonne from $0.20 due to nearly $98 million in newly commissioned non-expansionary capital expenditure rolling into the asset base, and the QCA levy is expected to contribute zero. The growth in NECAP spending demonstrates ongoing investment in terminal reliability and efficiency.
For investors holding DBI as an infrastructure asset, the distribution profile remains attractive within the company’s stated policy framework. The 8.5% growth in distributions falls within the company’s long-term target of 3-7% annual growth and maintains distributions at a level consistent with the 60-80% payout ratio of Funds from Operations that DBI outlined at listing. This suggests the company is balancing shareholder returns with prudent capital retention for future terminal upgrades. The terminal itself remains fully contracted on a 100% take-or-pay basis at 84.2 million tonnes per annum through to June 2028 with evergreen renewal options, providing visibility over revenue and explaining DBI’s confidence in its distribution guidance.
The composition of distributions in 2026-27 will include both dividends and partial repayments of the loan notes that form part of the stapled security structure, a detail that may be relevant to tax-advantaged investors. The TIC guidance remains subject to final confirmation of the 10-year bond rate for the NECAP component and Queensland Competition Authority sign-off on QCA fees, though movements in either direction at this stage appear unlikely to materially alter the headline numbers.
Investors should monitor quarterly distribution tracking against the 28.62 cps annual guidance, capital deployment decisions at the terminal as the company continues its non-expansionary capex program, and any changes to customer contract terms as existing agreements approach renewal. This announcement constitutes a price-sensitive disclosure, classified as material by the ASX.
View the full ASX announcement (PDF)
About Dalrymple Bay Infrastructure Limited (ASX: DBI)
Dalrymple Bay Infrastructure Limited operates the Dalrymple Bay coal export terminal located in the Port of Hay Point in Queensland, Australia. The company provides terminal infrastructure and services for producers and consumers of Australian metallurgical coal exports. The facility is capable of handling up to 84.2 million tons of coal per annum.
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