“Energy is essential to our everyday lives and APA is a leader in energy delivery. By continuing to enhance and develop our infrastructure portfolio, we not only meet the needs and create new opportunities for our customers, but we are also able to deliver secure and predictable returns to our investors. Since listing in 2000, APA has never reduced distributions nor traded below our listing price.”

Mick McCormack, APA Group Managing Director and Chief Executive Officer

Compelling value proposition

APA has a strong track record of delivering investors sustainable growth, security and value since listing in 2000. A reliable business strategy, innovating for growth and caring about how we conduct our operations are the attributes that combine to deliver superior securityholder value year after year, regardless of market cycles.

As at the 31 December 2016, APA's total securityholder returm (TSR) since listing on the ASX is 1,467.3%, a compound annual growth rate (CAGR) of 18.1%.[1]

Since listing, APA has never reduced distributions and our policy is to fully fund distributions out of operating cash flow therefore not compromising our ability to grow through continued investment in the business.

 

Consistent, reliable business strategy

Our strategy has not changed materially over the years with a focus on serving our customers and solving their energy challenges in a manner that generates sustainable growth opportunities and returns. We do this by utilising our core skills in gas transmission, distribution and complementary energy infrastructure assets, and by leveraging our extensive commercial, technical, financial and engineering smarts.

APA’s history of consistently delivering solid financial results and a $20 billion portfolio of interconnected energy assets are proof of the strength of this strategy.[1]

We have a low risk approach to business, with the large majority of our revenue currently derived from long term take or pay contracts with highly creditworthy counterparties and from regulated assets. Pipeline expansions are also generally underpinned by long term customer contracts or approved access arrangements. Growth opportunities and investments are funded with a mix of free cash flow, debt and equity, and in a way that maintains our investment grade credit ratings. 

1H17 Revenue:

by Contract Typeby Customer Credit Rating
by Customer Industry Segment   
   

Delivering growth

APA had just 6 employees, a portfolio of $1 billion of assets and a market capitalisation of half a billion dollars when we listed in June 2000. Now, we are Australia’s leading natural gas infrastructure business. We now own and/or operate over $20 billion of assets [link to asset map], have a permanent employee base of over 1,600 people throughout Australia and are one of Australia’s top 50 listed companies with a market capitalisation of around $10 billion.

Our 15,000 plus kilometre gas transmission pipeline network connects every major gas supply source in Australia with commercial markets. We are particularly proud of the interconnected gas grid system that spans over 7,500 kilometres on Australia’s east coast providing seamless and flexible transportation and other services for customers.

APA has three types of growth that we pursue – organic growth in response to our customers’ needs; mergers and acquisitions, particularly assets that are/can be connected to our assets; and large, greenfield projects. We maintain our balance sheet to ensure that we are able to fund these growth opportunities within the parameters that see us consistently retain our BBB and Baa2 investment grade credit ratings.

FY16 Total Assets

Commitment to safety

Safety and the way we conduct ourselves in the communities where we operate will always be high priorities for APA. We aim for zero harm for our employees, contractors and the communities and environments where our infrastructure is located. Our assets have long life spans and so we are fully aware of our responsibilities as long term members of and contributors to those communities.

Looking after our people and assets improves service reliability, safety, operational efficiency and extends the economic life of our assets. We do this by:

  • Enhancing infrastructure operations and maintenance;
  • Consolidating pipeline control and monitoring operations to ensure high reliability;
  • Improving asset maintenance management systems and processes across the portfolio; and
  • Adoption of global industry best practice.


[1] Past results are not an indication of future performance. Investors should discuss their personal investment circumstances with their chosen financial adviser prior to committing to investment in APA.

[2] Lost time injury frequency rate (LTIFR) is measured as the number of lost time injuries per million hours worked.  Data from FY14 includes both Employees and Contractors.  Prior to that, employee only data.

  [3]Total reportable injury frequency rate (TRIFR) is measured as the number of lost time and medically treated injuries sustained per million hours worked.  All data includes both employees and contractors.