https://dbinfrastructure.com.au/
About the company
Dalrymple Bay Infrastructure Ltd. (DBI) is an Australian company that owns and operates the Dalrymple Bay Coal Terminal (DBCT) in Queensland, one of the world’s largest coal export facilities. Here are some key points about the company:
- Core Business: DBI’s primary asset is the Dalrymple Bay Coal Terminal, which handles, stores, and ships coal from the Bowen Basin coalfields to global markets. This terminal is critical for the export of metallurgical coal, which is used in steel production.
- Operations: The terminal has a significant capacity, capable of handling over 85 million tonnes of coal per annum. It operates under a long-term lease from the Queensland Government and provides services to multiple coal producers.
- Revenue Model: DBI generates revenue through user agreements with coal producers, who pay fees for the handling and shipping of coal. These agreements typically involve long-term contracts, providing DBI with stable and predictable cash flows.
- Financial Performance: DBI’s financial performance is closely tied to coal export volumes and global coal demand. The company benefits from the demand for high-quality metallurgical coal, particularly from Asian markets.
- Growth Potential: DBI focuses on optimizing and expanding terminal operations to increase capacity and efficiency. This includes investment in infrastructure and technology to support growing coal export volumes.
- Sustainability: DBI is committed to sustainable practices and adheres to environmental regulations. The company engages with stakeholders to ensure responsible and sustainable operations, considering the environmental impact of coal handling and shipping.
Initial Screening
Dalrymple Bay Infrastructure (ASX:DBI) has a healthy grossed up dividend yield of 8% and an undemanding price earnings ratio (PER) of 17.8. Brokers see further growth in their revenues and earnings when they next report their results.
Fundamental analysis
Dalrymple Bay Infrastructure (ASX:DBI) has been a strong performer in the short time it has been listed with brokers seeing no reason why that won’t continue.
Dividends have been increasing steadily since listing.
Dalrymple Bay Infrastructure (ASX:DBI) is #619 on the ASX list of most shorted stocks. Short positions in this company are inconsequential.
Quality Analysis
It’s still relatively early days as a listed company, but the signs are positive. Earnings and revenues have been steadily rising while margins are strong. Less positive is the fact the company does have a significant debt position and a modest return on equity. I would rate this a medium quality company.
Valuation
There isn’t a lot of history for the valuation model but the company doesn’t appear to be particularly cheap or expensive. A grossed up yield of around 8% is no doubt attractive to the dividend investor though.
News From The Company
Incidentally, “TIC” stands for Terminal Infrastructure Charge. This charge is a core revenue component for DBI, representing the fees paid by customers for the use of the Dalrymple Bay Coal Terminal’s infrastructure. The Terminal Infrastructure Charge is a significant element of DBI’s income, supporting the maintenance and operation of the terminal and contributing to the company’s overall financial performance.
Technical Analysis
The chart is in a short and medium term uptrend and has been since the price broke out from a sideways patter in October 2022.
Final thoughts on Dalrymple Bay Infrastructure (ASX:DBI)
Dalrymple Bay Infrastructure (ASX: DBI) is highlighted as a compelling dividend stock due to its stable revenue from long-term user agreements at its coal terminal. Despite high debt, the company’s consistent cash flow supports a robust dividend yield, making it attractive for income-focused investors. Analysts appreciate DBI’s potential for reliable dividend returns, backed by steady demand for coal exports and strategic infrastructure investments.
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Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.