Dalrymple Bay Infrastructure shares: terminal update and capacity outlook

Dalrymple Bay Infrastructure reports its export terminal is fully contracted through to 2028, with stable cash flows and expansion on the agenda.

| More on:
A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Dalrymple Bay Terminal is fully contracted at 84.2Mtpa capacity until 2028, primarily supporting global metallurgical coal exports with significant take-or-pay agreements.
  • Revenue stability is ensured through long-term contracts, with the terminal playing a key role in the steelmaking supply chain and ongoing investments in non-expansion capital expenditure.
  • Dalrymple Bay Infrastructure plans for potential capacity expansion to 99.1Mtpa, seeks diverse funding options, and focuses on sustaining capital projects to maintain reliability and customer satisfaction.

The Dalrymple Bay Infrastructure Ltd (ASX: DBI) share price is in focus after the company provided an update during its Dalrymple Bay Terminal site visit, highlighting the terminal's fully contracted volume of 84.2 million tonnes per annum (Mtpa) to 2028 and continued strong demand for metallurgical coal exports.

What did Dalrymple Bay Infrastructure report?

  • Dalrymple Bay Terminal is fully contracted to its 84.2Mtpa capacity through to June 2028 under take-or-pay agreements
  • About 81% of revenue derives from predominantly metallurgical coal mines, with DBT supplying 14% of global seaborne met coal exports in 2024
  • The terminal shipped coal to 22 countries from 21 mines owned by 11 major customers in the year to 31 December 2024
  • DBI has successfully delivered over $430 million in non-expansion capital expenditure (NECAP) projects since 2008
  • Ongoing NECAP works are forecast at $30 million to $50 million per annum, with a strong alignment between customers and operator

What else do investors need to know?

Dalrymple Bay Infrastructure's revenue is underpinned by long-term take-or-pay contracts, which lowers volume risk and supports predictable cash flows. The terminal plays a strategic role in the global steelmaking supply chain, handling a significant portion of Australia's metallurgical coal exports from the Bowen Basin.

The company retains a 75-year lease on the terminal, with the operator owned by a subset of customers managing day-to-day activities. This structure is designed to minimise operational complexity and risk for DBI while aligning investment decisions with customer needs.

What's next for Dalrymple Bay Infrastructure?

Looking ahead, Dalrymple Bay Infrastructure is planning for the 8X expansion, which could increase terminal capacity to 99.1Mtpa. All primary environmental approvals for the expansion have already been secured, and DBI is consulting with customers about next steps.

The company is also exploring a range of funding options—beyond the traditional debt and equity mix—to deliver growth, while maintaining its focus on stable distributions to securityholders. Core sustaining capital works are expected to remain a priority, ensuring long-term operational reliability and customer satisfaction.

Dalrymple Bay Infrastructure share price snapshot

Over the past 12 months, Dalrymple Bay Infrastructure shares have risen 28%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 1% over the same period.

View Original Announcement

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

More on Share Market News

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 broke its losing streak to inch higher today.

Read more »

A businessman in a suit adds a coin to a pink piggy bank sitting on his desk next to a pile of coins and a clock, indicating the power of compound interest over time.
Consumer Staples & Discretionary Shares

1 ASX 200 share to consider for the coming decade

I think this stock has a right decade in front of it.

Read more »

A man sitting at his dining table looks at his laptop and ponders the CSL balance sheet and the value of CSL shares today
Broker Notes

Buy, hold, sell: Flight Centre, Suncorp, and Zip shares

Let's see if analysts are bullish or bearish (or something in between).

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Consumer Staples & Discretionary Shares

Bapcor shares soar 12% on the appointment of a new CEO

The market’s strong reaction reflects a clear message: investors are ready for a reset.

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Share Gainers

Why Bapcor, IDP Education, Netwealth, and Ora Banda shares are pushing higher today

These shares are catching the eye with solid gains on Thursday. But why are they rising?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Boss Energy, Paragon Care, Treasury Wine, and Woodside shares are falling today

These shares are having a tough session on Thursday.

Read more »

Business people discussing project on digital tablet.
Share Market News

Qube Holdings books $100m profit after selling Beveridge property

Qube Holdings announced a $111 million sale of its Beveridge property, delivering a material profit for FY26 accounts.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Broker Notes

Does Macquarie rate Treasury Wine shares a buy the dip opportunity?

Let's see if the broker is bullish, bearish, or something in between.

Read more »