General APA information
APA Group is Australia’s leading gas transportation company with interests in over 15,000 km of natural gas pipeline infrastructure across Australia, wind farms, gas-fired power generation and gas storage facilities.
APA comprises of two trusts, Australian Pipeline Trust (APT) and APT Investment Trust (APTIT) which are registered managed investment schemes regulated by the Corporations Act. Units in APT are "stapled" to units in APTIT on a one to one basis to form a single APA Group stapled security which is listed on the ASX (ASX Code: APA).
APA manages and operates the majority of its assets and also provides management and operation services to its energy investments, as well as to gas distribution and transmission company, Australian Gas Networks.
The principal activities of APA are the ownership and operation of energy infrastructure, including:
- Gas transmission and distribution businesses and investments across Australia.
- Investments in energy infrastructure entities.
- Asset management and operations services for its energy infrastructure and investments, as well as for Australian Gas Networks assets.
APA derives its reliable and predictable revenue stream through a mix of regulated returns and negotiated revenue contracts. APA owns and operates assets in each mainland state and territory.
About your securityholding
Contact Link Market Services, APA's Share Registry;
Link Market Services Limited
Level 12, 680 George Street, Sydney NSW 2000 Australia
Telephone: 1800 992 312
Email: [email protected]
If you have any Investor Relations enquiries / questions regarding the business, please contact APA’s Group Head of Investor Relations on +61 2 9693 0097 or [email protected].
Advice of TFNs can be made over the phone or in writing to Link Market Services. You may choose not to provide your TFN, but if you are an Australian tax resident individual and you do not provide your TFN, distributions to you that are assessable income will have income tax deducted from them at the highest marginal rate.
Please refer to the information provided on our Tax Information page in the My Securities section of this website or consult your tax advisor or accountant.
About your distributions payment
Distributions by APA will be paid semi-annually in March and September.
The value of your investment with APA can be determined by multiplying the number of securities held by the current security price. The number of securities can be found on your latest holding statement. Share price information is available on the APA Security Price chart or on the ASX website: www.asx.com.au
APA pays cash distributions to securityholders in Australia and New Zealand by direct credit:
- Direct credit in Australian dollars to a nominated account in Australia
- Direct credit in New Zealand dollars to a nominated account in New Zealand
Effective from the interim 2014 distribution, no cheque payments will be made to securityholders residing in Australia or New Zealand. Securityholders in other countries may receive cheque payments in Australian dollars.
Eligible securityholders can participate in APA's Distribution Reinvestment Plan (DRP) when the Plan is operating.
You may notify APA's Security Registry Link Market Services Ltd of the Australian or New Zealand bank account into which you would like payments made by completing a Direct Credit of Payments form available from Link Market Services.
If your holding is currently worth less than $50,000, you can nominate your bank account online here.
If your holding is currently worth more than $50,000, your request will need to be in writing and include:
- your Securityholder Reference Number (SRN) or Chess Holder Identification Number (HIN). These can be found on your latest holding statement
- your full name and address
- all securityholders signatures
- banking details, including your bank, branch and account numbers.
Please post this notification to:
APA Group Securities Registry
c/- Link Market Services
Locked Bag A14
Sydney South NSW 1235
Having the record date for the final distribution on or before 30 June ensures that securityholders are not effectively taxed on distributions from APTIT at a higher rate than necessary.
APTIT is a pass through trust and as such net taxable income is taxable in the hands of securityholders in the year the income is earned, provided the holder is ‘presently entitled’ to the income at 30 June. Entitlement to the income is deemed to be on the record date.
Where the record date is after the end of the financial year any undistributed income in APTIT is taxed in the hands of the Trustee at a rate (49%) that exceeds what would be payable by many securityholders.
To ensure the Trustee does not have to pay the top marginal tax rate, and securityholders benefit from the pass through trust structure, APA's Board previously decided to bring forward the record date for all future distributions to the last business day on or before 30 June.
APA pays distributions to securityholders from excess operating cash flows that remain in the business after paying all costs (including interest) and maintenance capital costs. APA looks to strike a balance between rewarding securityholders with sustainable increases in distributions over the longer term and retaining funds in the business in support of APA's organic growth and investment activities.
Whilst distributions have historically exceeded earnings (profit), they remain well within APA's operating cash flows and therefore remain sustainable going forward. This is primarily the result of the large non-cash accounting cost of depreciation when compared to the low levels of maintenance capex. As a result, from an accounting sense, distributions are generally taken from net profit after tax plus the excess of depreciation over maintenance capex.
Please note that APA’s trust structure allows distribution payments to exceed net profit.
APA’s distribution policy is that distributions:
- Will be fully covered by operating cash flows;
- Must be sustainable over the longer term;
- Will generally grow in line with growth in operating cash flow; and
- Will be determined in the context of the financial conditions at the time.
APA’s Board reviews this policy at each distribution date.
About APA financial results
Full year and half-year results are available on this website. See the Reports and Presentations page to access the results for the period you are looking for.
About your tax
You will receive your annual tax statement with your final distribution mid-September. This will set out all the tax components required for you to complete your income tax return. APA will also provide a Tax Guide to assist you in preparing your income tax return.
You should refer to your APA Group Annual Tax Statement and the APA Tax Guide when preparing your income tax return.
Distribution components from APT and APTIT must be separately disclosed in your income tax return. These distribution components will be set out in your annual tax statement.
The tax components of APA distributions for the financial year will be disclosed in the APA Group Annual Tax Statement mailed with your final distribution expected to be mid-September.
Securityholders who wish to prepare their tax return prior to receiving their APA Group Annual Tax Statement and the APA Group Tax Return Guide for the financial year, can use APA’s Annual Tax Statement Estimator to generate pro forma tax return inputs. Information provided by the Estimator is based on information submitted by Securityholders and may differ to the information contained in an individual’s APA Group Annual Tax Statement due to factors such as rounding and user input. APA Group specifically disclaims any and all liability for use or reliance upon the Estimator for any reason whatsoever. Securityholders should use your APA Group Annual Tax Statement to complete their final tax return for the relevant tax year and consult professional and financial services advisors relating to their particular tax or financial position.
The actual amount of the final distribution is determined with the audited Full Year results. Tax components are also determined at this time.
This is consistent with other similarly structured stapled trust securities.
Please refer to our tax information section here.
About the redemption of APA Subordinated Notes
On 21 February 2018, APT Pipelines Limited announced its intention to redeem all of the Notes (ASX Code: AQHHA) on 31 March 2018. On the same date, APT Pipelines Limited issued a notice of redemption to each note holder and the trustee.
On 3 April 2018, you will be paid the Face Value of $100 and a final interest payment of $1.5510 for each Note held for the Interest Period commencing 1 January 2018 and ending on 31 March 2018.
Payments will be made in the same manner in which your notes interest payments have been previously paid. You do not need to do anything to receive your payments, unless you wish to amend your account details. You may provide or amend your account details online at www.linkmarketservices.com.au or by calling 1800 992 312 before 5.00pm (Sydney time) on 23 March 2018.
If your bank account details are up to date you do not need to do anything further. Otherwise, you may provide or amend your account details online at www.linkmarketservices.com.au or by calling 1800 992 312 before 5.00pm (Sydney time) on 23 March 2018.
You may provide or amend your account details online at www.linkmarketservices.com.au by 1800 992 312 before 5.00pm (Sydney time) on 23 March 2018.
Yes, you may sell your Notes on the ASX at the prevailing market price on or before 21 March 2018, which will be the last trading date for the Notes on the ASX.
The Notes trade under the ASX code AQHHA. Please be aware, if you sell your Notes on or before 21 March 2018, you will not be entitled to payment of the redemption amount.
The market price of the Notes may fluctuate due to a number of factors. There can be no assurances as to what the market price will be.
No, all Notes will be redeemed on the Redemption Date.
In accordance with clause 4.2 of the Notes Terms, APT Pipelines Limited has a right (and has elected to exercise that right) to redeem all APA Subordinated Notes on 31 March 2018.
No. There is no new offer of securities associated with the redemption of Notes.
Information for landholders
A gas leak may be indicated by a circle of dead vegetation, an isolated area of frozen ground, a roaring sound from escaping gas or the ‘rotten egg’ odour commonly associated with natural gas. But note that not all of APA’s gas pipelines have odorant added so a gas leak may be odourless.
If a pipeline has been damaged, presume that it will leak. If you suspect a gas leak, evacuate the area to a location at least 300 metres upwind from the leak, without creating sparks by using vehicles, machinery or electronic devices including a mobile phone. The area that may be impacted by a gas leak varies depending on the size of the gas pipeline and you may be directed to evacuate up to 1100 metres away.
Once evacuated call emergency services on 000 as soon as possible to advise of the leak and request further direction. Then contact APA on the emergency phone number displayed on the gas pipeline marker to notify us of the leak.
No. Pipeline markers signify that there is a high pressure gas pipeline in the vicinity and mark its general alignment - they do not mark its exact location.
If an APA high pressure gas pipeline is on your property, we can locate the pipeline at no charge. We will send a Pipeline Technician to locate the pipeline using an electronic locator.
An easement provides us the right to use the land to operate and maintain our assets even though we are not the landowner. The easement terms outline how we can use the land and what restrictions have been applied over the easement area – this includes restrictions to the type of activities that you can undertake. The location and terms of the easement are negotiated prior to the gas pipeline being built.
No. We are required to maintain line of sight between pipeline markers and cannot permit items on the easement that will restrict the line of sight. Tree roots and heavy items can also cause direct damage to the gas pipeline. Items on the easement may restrict our access and our ability to effectively operate and maintain the gas pipeline.
If you are unsure of what you can or cannot do on the easement then please contact our Infrastructure Protection team on 1800 103 452.
Please contact our Infrastructure Protection team on 1800 103 452 or [email protected] .
APA will access the property to undertake operational activities such as regular ground patrols (and in some instances aerial patrols), vegetation management and pipeline marker repairs. We do not usually provide prior notice that we are undertaking operational activities.
Occasionally we may need to undertake chemical vegetation control or excavate small sections of the gas pipeline. If this be required we will discuss it with you prior to the works taking place.
We aim to only use agreed routes to access the gas pipeline. If you have any concerns regarding the access routes please contact us on 1800 103 452.
We strongly recommend that all landholders contact the free Dial Before You Dial (DBYD) service to identify all underground assets. Using DBYD ensures that all utilities such as gas, telecommunications, water and electricity are identified before you proceed with works.
If your works are identified as impacting a gas pipeline we will contact you to discuss the works in more detail and, if required, we will provide a free location service. We will also complete the necessary assessment to ensure that the works are undertaken without causing damage to the gas pipeline and then issue written approval for you to complete the works.
Damaging any underground utility can cause widespread disruption and in some cases isolate entire communities from essential services. If you are found to be negligent in causing damage to underground utilities you can face severe penalties.
Unauthorised activity around high pressure gas pipelines is dangerous as it may cause damage to the gas pipeline leading to a leak or a rupture. Any unauthorised activity within the pipeline easement is a reportable offence to the Pipeline Regulator. Offences can incur substantial fines, which are issued by the regulatory authorities – not APA.
Information for contractors
Using the free Dial Before You Dig services is the essential first step to avoid damaging underground utilities when carrying out works. Damaging any underground utility can cause widespread disruption and in some cases isolate entire communities from essential services. If you are found to be negligent in causing damage to underground utilities you can face severe penalties.
Unauthorised activity within the pipeline easement is an offence reportable to the Pipeline Regulator. Offences can incur substantial fines, which are issued by the regulatory authorities – not APA.
APA provides a service to electronically locate and temporarily mark the alignment of our gas pipelines before works commence. Because of the risks involved with high pressure gas pipelines, locating may only be done by engaging with APA. Depending on the category of pipeline, a fee may be charged for electronic location. In the case of higher risk works, APA will require you to have the gas pipeline location physically proved by a vacuum truck. Such works can only proceed under APA authorisation and supervision.
APA approves all works within the easement and any work that may impact on the gas pipeline. Our written approval may include conditions that ensure the protection of the pipeline.
In some cases, this will include supervision of works by APA. Depending on the category of pipeline and circumstances the cost of this supervision may be recovered by APA.
Unauthorised activity around high pressure gas pipelines is a danger to those carrying out the activity and the community. Damaging a gas pipeline can result in fatalities and have long term financial, economic and environment impacts.
Any unauthorised activity within the pipeline easement is a reportable offence to the appropriate Pipeline Regulator. Offences can incur substantial fines, which are issued by the regulatory authorities, not by APA.
Engage with APA early and as required throughout your works to ensure you meet all the requirements for working around our assets and avoid the consequences of unauthorised works.