Leading Australian energy infrastructure business, APA Group (ASX:APA) today announced its financial results for the full year ended 30 June 2023 (FY23).
The solid FY23 result included growth in earnings and distributions, and over $1.2 billion of capital investment. The investments made in the business supported the delivery of our organic growth projects, the acquisition of Basslink, the maintenance of safe and reliable operations, and an uplift in capability across the Group, enabling a growing and resilient business over the long term.
- FY23 underlying EBITDA up 2.0% (up 3.5% excluding Orbost)1 to $1,725 million (FY22: $1,692 million) driven by a solid performance from the Energy Infrastructure segment
- Statutory net profit after tax (including significant items) was up 10.4% to $287 million (FY22: $260 million)
- Free Cash Flow2 was down 1.0% to $1,070 million (FY22: 1,081 million) with growth in underlying EBITDA and lower cash tax offset by higher stay in business capital expenditure
- FY23 full year distribution of 55.0 cents per security, in line with guidance and up 3.8% on FY22. FY24 distribution guidance of 56.0 cents per security, forecast to be up 1.8% on FY233
- Capital investment of ~$1.2 billion which included $845 million invested in critical infrastructure projects, including the East Coast Grid expansion (Stage 1), the Northern Goldfields Interconnect project (NGI) and Dugald River Solar Farm
Strong progress on our FY23 Sustainability objectives, including progressing our Climate Transition Plan, developing our inaugural Reconciliation Action Plan and continuing to support our communities
1Underlying FY23 EBITDA excluding the earnings from Basslink and the Orbost Gas Processing Plant was up 1.8% to $1,697m (FY22: $1,667m).
2Free Cash Flow is Operating Cash Flow adjusted for strategically significant transformation projects, less stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.
3Distribution guidance is subject to asset performance, macroeconomic factors, regulatory changes as well as timing of distributions from non-100% owned assets, with distributions to be determined at the Board’s discretion. It does not take into account the impact of any potential acquisitions or divestments by APA and any associated funding arrangements, other than the acquisition of Alinta Energy Pilbara and the associated Placement and Security Purchase Plan announced today.