Market News 20 July 2026

David Colman writes:

Channel Infrastructure NZ (NZX: CHI, ASX: CHI) has announced further progress on the redevelopment of its Marsden Point Energy Precinct.

Channel is New Zealand’s largest fuel import terminal business, storing and distributing 40% of New Zealand’s refined fuel imports including 80% of the country’s jet fuel and is developing an energy precinct at Marsden Point, which was an oil refinery until operations concluded in April 2022.

Channel has entered into an agreement with Integrate Scope DMCC for the sale and removal of its decommissioned Continuous Catalyst Regeneration (CCR) Platformer unit (CCR).

The CCR Platformer unit is a building sized 3D maze of steel pipes, scaffolding, catwalks, and chimneys that occupied a relatively small part, in the middle, of the greater Marsden Point facility (itself the size of a small town).

Channel will receive net proceeds of US$5.95 million (NZ$10 million) from the sale of the CCR with a net deposit of US$1.2 million (NZ$2 million) on signing and the balance to be received in three instalments across full year 2027 in line with the deconstruction programme of work and shipping schedule.

Channel’s demolition provision relating to the CCR was approximately NZ$3 million and these costs are no longer expected to be incurred due to the sale.

The removal of the CCR will make way for the construction of the proposed Marsden Point Biorefinery.

The Biorefinery project is being developed by a consortium led by Seadra Energy, and includes Qantas, Renova, Kent, ANZ NZ and now also Air New Zealand.

The proposed biorefinery is expected to produce biodiesel, Sustainable Aviation Fuel (SAF), and urea and other fertilisers, all of which would be manufactured from biogenic feedstock sources (including agricultural and local government byproducts and residues).

The Biorefinery’s capabilities have been expanded to include the manufacture of fertilisers from byproducts of biorefining processes with Ballance Agri-Nutrients Limited forming an alliance with the Seadra consortium that would enable the production and offtake of fertilisers.

The local production of fertilisers is intended to help supplement manufacturing at the Kapuni Project (a South Taranaki renewable energy and green hydrogen project) and supply from overseas.

The plant’s manufacturing capacity of drop-in fuel products from domestic sources will strengthen New Zealand’s resilience to global supply chain disruptions and strengthen its fuel and economic security. An estimate of up to 400 million litres per year of low carbon renewable fuels could be available for the domestic market during periods of fuel supply chain disruption.

The Marsden Point Biorefinery is anticipated to attract $1 billion of private sector investment to fund the construction of greenfield units as well as the repurposing of existing decommissioned refinery equipment and infrastructure.

The early contractor involvement (ECI) phase of project development has begun with strategic partners, to support final assessments of project costing, scheduling and design to enable the project to work towards a final investment decision.

The expansion of the project scope does not impact the consortium’s view of the overall timing of the project. The biorefinery project remains subject to the successful conclusion of the funding process, commercial discussions between the parties and any necessary regulatory approvals.

Channel has ambitious plans and identifying ways of reusing and realising value from its decommissioned assets is well supported and should be commended.

This project is expected to benefit Northland, with the potential for hundreds of jobs, and New Zealand, strengthening the country’s fuel supply security.

Channel will announce its half year results on 28 August 2026.

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Skellerup (SKL) increased its forecast full year 2026 net profit after tax (NPAT) to a range of $64 to $65 million.

This compares favourably to earlier guidance of $57 to $62 million and full year 2025 NPAT of $54.5 million.

CEO Graham Leaming described Skellerup’s sales in the US market as higher than anticipated.

The USA is Skellerup’s largest market, and demand was higher for its products related to potable water, wastewater, dairy, footwear and marine applications in the fourth quarter.

Sales of dairy consumables in the New Zealand market were also higher than expected.

Lower US tariff costs and a weaker NZD also contributed to the higher-than-expected fourth quarter earnings.

The company’s leadership, procurement and manufacturing teams were noted to have responded outstandingly well to deliver to customers, likely solidifying customer retention.

The company has experienced a period of significant uncertainty on the availability of key materials, but risks associated with security of supply appear to have receded.

Skellerup will announce its full year 2026 results on 20 August 2026.

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Two of New Zealand’s largest retirement village operatorshave recently released updates.

Summerset Group (SUM) reported 448 sales of occupation rights for the quarter ending 30 June 2026.

There were 221 new sales in line with the second quarter 2025 and 227 resales (an increase of 26% versus the same timeframe last year).

Chief Executive Scott Scoullar was pleased with both the quarter’s sales and performance over the first six months of the year.

Total first half (start of January to end of June) sales were up 17% on the same period last year, with new sales up 12% and resales up 23%.

The company opened four new village centre buildings during the first half of the year including in Cambridge, Whangārei and Waikanae in New Zealand and in Cranbourne North, Australia.

At Cambridge, 45% of the available serviced apartment, care and memory care stock is already occupied or under contract, with 43% at Whangārei, and 30% at Waikanae.

At Cranbourne North in Victoria, Australia, 21% of the village centre building assisted living apartments are occupied or under contract.

Sales momentum at Summerset St Johns in Auckland had also continued during the quarter and was described as remaining one of the company’s strongest-performing new sales villages, averaging 1.6 sales per week in the second quarter.

Summerset’s new villages have shifted its portfolio towards a greater weighting of care and apartment sales consistent with its development pipeline, and guidance provided in February 2026.

A disciplined approach has been taken since the start of the Iran conflict resulting in a reduction to its New Zealand build rate in line with economic conditions. The New Zealand delivery of new homes for the 2026 years is forecast to be between 600 and 650 (a reduction in build rate of 50 homes).

SUM remains on track to deliver the previously forecast 100 to 150 homes in Australia keeping the overall forecast to between 700 and 800 homes.

Summerset will release its half year 2026 financial results on Thursday 27 August.

Ryman Healthcare (RYM) provided its First quarter trading update reporting 325 sales of retirement living occupation right agreements (ORAs) for the quarter ended 30 June 2026.

RYM achieved 265 resales and 60 new sales in its first quarter of full year 2026.

Resales of occupation rights were consistent with the trading update provided in its full year 2026 results, and resale volumes remained in line with the same period last year with serviced apartments accounting for a higher proportion of the mix reflecting the company’s sales strategy and growing demand for assisted living.

Net resales contract volumes increased by 7% on the same period last year.

CEO Naomi James remarked that resales had held up despite the external impacts of global events on housing market conditions with new sales stock reduced by 65 units to 414 units in quarter 1 full year 2027.

New sales of serviced apartments were noted at the Bert Newton Village in Melbourne and Kevin Hickman Village in Christchurch as a sign of strong performance in the quarter.

Further stock reduction and progress in full year 2027 is expected to contribute towards Ryman’s $500 million cash release target scheduled for full year 2029.

Ryman remains on track to deliver its full year 2027 build guidance of 157 to 168 retirement living units and aged care beds at Patrick Hogan Village in Cambridge and Richard Hadlee Village in Christchurch including 60 aged care beds, 71 serviced apartments and 26 to 37 independent living units, with deliveries expected in the second half.

Within the quarter, 15 townhouses at Patrick Hogan were released for pre-sale, with around two thirds contracted in the first week.

Demand for Ryman’s aged care offering was described as remaining strong across its 4,700 aged care beds with occupancy in mature care centres at 96.1% in the quarter (unchanged from Q4 full year 2026).

Subdued housing market conditions were noted to have impacted independent living sales. Initiatives such as offering greater product choice and various pricing options across independent living, assisted living and aged care are projected by Ryman to produce positive results.

The company’s objective remains to lift retirement living resale volumes to match turnover by the end of the financial year.

Retirement sector operator’s performances have varied greatly, and the sector has shown flexibility and resilience in a market influenced negatively by underlying house price devaluation experienced in recent years.

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Travel

David Colman - Lower Hutt - 21 JulyDavid Colman - Palmerston North - 24 July

Edward Lee - Auckland (Ellerslie) – 6 August

David Colman - Whanganui - 6 AugustDavid Colman - New Plymouth - 7 August

David Colman

Chris Lee & Partners