This morning, Dalrymple Bay Infrastructure (DBI), the world’s largest met coal export terminal, reported its half-year 2026 results, which demonstrated strong earnings and distributions. The Atlas portfolio has a 2.5% allocation to DBI.

Key Points:

  • Record Profits: DBI’s full-year profits increased by +10% to $93 million, driven by a 4% increase in tolling charges for the terminal with a small increase in costs, leading to a 96% profit margin.
  • Organic Growth Coming: For every dollar that DBI invests into its terminal, they get to increase the tolling charge of the terminal. As the coal miners are the terminal’s operators, they want to invest as much as possible in the terminal to increase efficiency. Due to DBI investments over the past 4 years, tolling charges will increase by $0.53 per tonne or $45 million per year in 2027, with no increase in associated costs, meaning the increased revenue goes straight to the bottom line for shareholders.
  • Stronger Balance Sheet: DBI announced in December last year that it has refinanced $1.07 billion of debt at a 6.2% interest rate and termed out the length of the loan. This is a great result, as the previous debt carried a 7.8% interest rate that was set to expire next year. This move will save DBI over $75 million in interest repayments over the next three years.
  • Dividends Up: DBI announced a half-year dividend of 13.5 cents per share, representing +15% growth on last year’s dividend.
  • Outlook: DBI management did not provide explicit guidance but did announce that they expect dividends for the next year to total 28.6 cents per share (See Below).

Portfolio Strategy: Dalrymple Bay Infrastructure is the concession holder of the world’s largest met coal export terminal. We are attracted to DBI due to its high quality, long life, and largely monopolistic infrastructure asset. The company has demonstrated an ability to grow distributions ahead of inflation by both raising the tolling charge and organically developing its asset. DBI revenues are independent of commodity prices and are linked to CPI and development returns, and trades on an attractive 5% dividend yield.

DBI finished up +2.5% to $5.35