Introducing Refining NZ (Channel Infrastructure NZ)
Investors in the Elevation Capital Global Shares Fund own a share of Refining NZ (NZX:NZR), New Zealand’s only oil refinery since 1956. On 8 August 2021, shareholders voted overwhelmingly at a special meeting to approve the transition to an import terminal and rebrand as Channel Infrastructure NZ. This ‘pivot’ is forecast to generate significantly more stable earnings compared with the inherent volatility of oil refining, deliver superior “through the cycle” returns to shareholders, and position the company to meaningfully participate in the decarbonisation of the New Zealand energy market.
The Elevation Capital Global Shares Fund has owned Channel Infrastructure from April 2020 to present delivering a net return of +49.12% to date. Channel Infrastructure trades at an attractive discount to our comparable companies valuation range of NZ$1.19 to NZ$1.43, offering a potential upside of +108.67% to +152.24% from the Elevation Capital Global Shares Fund’s historical cost basis as at 16 November 2021, and a +36.24% to +64.68% upside from the 16 November 2021 market price of NZ$0.87. To read our Investment Summary Report please click the button below.
