Oz APA's 1H Profit Up 27%

Australian gas infrastructure firm, APA Group, February 20 announced a net profit after tax of A$157.4mn (US$113mn) for the six months to December 31 (1H2019), up 27% year-on-year. Revenue for the period was up 6.1% on the corresponding period to A$1.01bn.

“This is a very sound result and even more pleasing as it was achieved during a period of relative uncertainty caused by the proposed Scheme of Arrangement with CKI. We said we would get on with business as usual and focusing on our customers’ needs whilst the process played out, and the results announced today demonstrate that is what we have done,” APA chairman, Michael Fraser said.

The company said new revenues were delivered from projects such as Reedy Creek Wallumbilla pipeline, Darling Downs solar farm, Emu Downs solar farm and Mt Morgans gas pipeline.

APA CEO, Mick McCormack added, “With gas playing an increasingly important role in Australia’s energy mix, APA’s long term approach to investment and its commitment to nation building, is making a significant contribution to energy supply and the reliability of the energy market generally. This result sees the contribution of increased revenue from our new growth projects, as well as an uplift in East Coast Grid contract variations and renewals to support our customers in getting gas to market; where and when it is needed.”

For the full year, APA maintained growth capex of around A$425mn.

APA is the largest gas transmission system owner in Australia, owning 15,000 km of pipelines representing 56% of Australia’s gas pipeline transmission system, including 74% of New South Wales and Victorian pipelines and 64% in the Northern Territory. It also supplies gas for part of all mainland capital cities’ consumption, gas-fired electricity generation assets and LNG exports.