DBI +6.19%: the port owner upgraded guidance on the back of relaxed regulation, sending the stock higher today. The terminal infrastructure charge will increase to $3.18/t, applied retrospectively from July 1, 2021, bringing in a windfall of $61m for the backdated charges. The new price is an increase of 29% on the previous agreement which rolled off last year. Distribution guidance for the remainder of the year has been increased 10% to 20.1cps, and 3-7% growth p.a. over the medium term is now expected on the new pricing model. It’s taken longer than expected to secure the pricing increase, however, today’s update provides more certainty around earnings and income for shareholders for a number of years, creating a low risk earnings stream.
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