Statutory net profit for the half-year was up 287% on the same period in 2013 to $467 million, according to the gas infrastructure company’s report, while EBITDA rose 113% to $850 million.
Operating cash flow showed a more modest result, climbing 35% to $280 million.
The company’s profit was largely influenced by the sale of its shareholding in Envestra in August, with the company palming off its stake to bidding rival Cheung Kong Group for a gross $784 million, resulting in an after tax profit of $356 million.
In addition, APA won $17.2 million in a successful appeal to the New South Wales Supreme Court over a performance fee dispute with Hastings Funds Management.
APA embarked on a number of expansion and growth endeavours during the period, spending capital of $162 million on gas infrastructure in NSW, Victoria, Queensland and Western Australia.
These projects included the construction of compression facilities for the South West Pipeline expansion in Victoria, the expansion of the Goldfields gas pipeline in WA and the company’s shortlisting for the proposed North East pipeline.
“APA’s unrivalled gas infrastructure portfolio and industry expertise continue to drive growth and sustainable returns for security holders,” APA chairman Len Bleasel said.
“A number of recent expansion and enhancement projects have contributed to strong organic growth in the half year, while the profit recorded on the sale of our Envestra shareholding is now available for investment in projects that meet APA’s strict criteria including the QCLNG Pipeline acquisition.”
“We are continuing work on a number of growth projects, including capacity expansions and the installation of enhanced capabilities on a number of our pipelines. Construction of the Eastern Goldfields Pipeline is due to commence in the second half and we are on track to invest close to $400 million in growth projects this year,” APA managing director Mick McCormack added.
APA entered into its $5 billion agreement with BG Group in December for the QCLNG pipeline and expects the deal to close in the June quarter, delivering an expected $41-83 million to the company’s predicted full-financial-year EBITDA of about $1.3 billion.
“The addition of the QCLNG Pipeline to our portfolio will further enhance
APA’s position as Australia’s largest gas infrastructure business,” McCormack said.
“The project will provide APA with revenue under long-term take-or-pay contracts with highly creditworthy counterparties and will expand our interconnected grid on the east coast through a direct link to the burgeoning LNG industry in Gladstone.”
In terms of APA’s various segments, energy infrastructure returned EBITDA of $373.6 million, up 14.6%, while asset management fell 41.6% to $20.1 million and energy investments fell 12% to $7.6 million.
At the end of 2014, APA had cash and undrawn facilities of $2.4 billion.
