Dalrymple Bay Infrastructure shares: terminal update and capacity outlook

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.

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The post Dalrymple Bay Infrastructure shares: terminal update and capacity outlook appeared first on The Motley Fool Australia.

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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.