Australia's APA reports sharp jump in profit in July-December

Australian energy infrastructure company, APA, on February 22 announced a five-fold increase in its statutory net profit during July-December (1HFY24) driven by recent acquisitions of Pilbara Energy (Alinta) and Basslink.

The net profit for the six months through December was A$1.05bn ($609mn) compared with A$190.7mn reported a year earlier. Underlying EBITDA was up 5.8% to A$930mn, underpinned by inflation-linked tariff escalation and robust performances from recent acquisitions, including a six-month contribution from Basslink and a two-month contribution from Pilbara Energy. 

“Our Pilbara Energy (Alinta) acquisition was completed in the half, establishing a growth platform in one of the world’s leading resources regions. Integration is tracking well and performance to date is in line with our business case,” APA CEO, Adam Watson, said.

“Similarly, our other recent acquisition, Basslink, delivered earnings in line with its acquisition business case and its integration is nearing completion,” he added. 

The acquisition of Pilbara Energy was completed last year for A$1.7bn. Alinta Energy Pilbara adds a diverse range of operational assets to APA’s portfolio, including gas and solar power generation, gas transmission, battery energy storage systems, and electricity transmission.