Tuesday 25 August 2015 by Alen Golubovic Company updates

Dampier-to-Bunbury Pipeline – lower FY15 but improved gearing

Dampier-to-Bunbury Pipeline (DBP)’s FY15 result is down on FY14 reflecting the lower tariff revenues from last year’s recontracting. However, DBP outperformed its FY15 EBITDA guidance by $13m and reduced debt by $180m over the financial year

Key points

  • Gas volumes were down 1.2%, with reduced capacity resulting from the 2014 recontracting
  • Transport revenue was down 8.2%, reflecting a 9.5% reduction in regulated full-haul tariffs in line with guidance given at the time of recontracting last year
  • EBITDA was down on FY14 by 9.8% to $314.5m as a result of the lower tariff revenues, but $13m better than FY15 guidance
  • Gearing levels have improved from 69.6% to 65.7%, driven by $180m paid out of debt over the year. The high gearing levels reflect the stable nature of the contracted, take-or-pay revenues earned by DBP
  • Net external interest expense was down 20.8% to $179m

Please contact your FIIG representative for more information on the DBP bonds available to FIIG investors.