Major Australian Gas Pipeline Owner Sees Profits Surge
Major Australian gas pipeline owner, APA Group, saw its net profit after tax rise 32% year on year in fiscal 2016-2017 (July-June) to A$236.8mn ($186.87), the company said Wednesday.
“Our commitment to investment and innovation has translated into more flexible and efficient outcomes for the energy industry, and importantly continues to facilitate increased gas supply to the east coast gas market,” APA chairman, Leonard Bleasel, said.
“The solid FY2017 result demonstrates the success of our disciplined growth and acquisition strategy. We highlighted growth opportunities of around [A]$1.5 billion in August last year and so far have announced committed projects for [A]$1.2 billion of that, with more projects to come,” he added.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12-month period was A$1,470.1mn, up by 10.5% from the previous year, it said.
Energy policy and pricing has come under the political and media spotlights in recent months and has seen the government step in in an effort to reduce prices.
“As a result, we had numerous regulatory reform interventions thrust upon the industry at short notice and with limited consultation,” APA Group managing director, Mick McCormack, said.
“Despite this, APA continues to work with all relevant stakeholders to facilitate the delivery of cheaper gas to the domestic market. In recent months, we have progressed and completed agreements that will deliver more gas to domestic users,” he said.
He highlighted a recently agreed new contract on the Roma Brisbane Pipeline which sees gas being delivered more than 2,500 kilometres away in South Australia to the Pelican Point Power Station.
APA expects further EBITDA growth for the 2017-2018 fiscal year, forecasting it to be in a range of A$1,475mn-A$1,510mn.
APA is Australia’s largest gas infrastructure business, owning and/or operating around A$20bn of energy infrastructure assets. Its gas transmission pipelines span every state and territory on mainland Australia, and deliver about half on the country’s gas usage.
Nathan Richardson