Leading Australian energy infrastructure business, APA Group (ASX:APA), today announces its financial results for the year ended 30 June 2024, delivering growth in earnings and distributions. New assets, including the Pilbara Energy System (Pilbara Energy) business, made a strong contribution.
Key highlights
- Underlying EBITDA of $1,893 million, in line with guidance and growing 9.7% on FY23 underpinned by solid performance from the east coast gas expansion and an eight-month contribution from Pilbara Energy which has performed in line with its acquisition business case.
- Total statutory revenue (excluding pass-through revenue) was $2,591 million, up 7.9%.
- Moderation of corporate cost growth, after excluding non-cash mark-to-market adjustment.
- Statutory net profit after tax (including significant items) of $998 million, driven by the remeasurement of APA Group’s pre-existing 88.2% interest in the Goldfields Gas Pipeline as we moved to full ownership of this asset as part of the Pilbara Energy transaction. This more than offset the non-cash $144 million (pre-tax) impairment of the Moomba Sydney Ethane Pipeline (MSEP) which was recognised due to our single-user customer ceasing operations.
- FY24 distribution of 56.0 cents per security, up 1.8% (FY23: 55.0 cents per security) and in line with guidance.
- Free Cash Flow1 (FCF) of $1,073 million, growth of 0.3% compared to FY23.
- $833 million in capital investment in growth projects, including strong progress with the Port Hedland Solar and Battery Project which is nearing completion.
- Momentum with our business development activities with construction progressing well on both our Solar and Battery Project in Port Hedland, and our Kurri Kurri lateral pipeline development in NSW. Organic growth development pipeline further strengthened by the recently announced Brigalow pipeline agreement.
- FY21-FY24 Sustainability Roadmap commitments completed including the launch of our inaugural Reflect Reconciliation Action Plan. Progress continued towards the delivery of APA's Climate Transition Plan 2030 interim targets and goals.
- FY25 distribution guidance2 is 57.0 cents per security, up 1.8% on FY24. Underlying EBITDA guidance2 is being provided for FY25 of $1,960 million - $2,020 million.
1 Positive/negative changes are shown relative to impact on profit or other relevant performance metric; n.m. = not meaningful.
2 Statutory revenue excluding pass-through. Pass-through revenue is offset by pass-through expenses within EBITDA. Any management fee earned for the provision of these services is recognised within total revenue.