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    Oz APA Reports Loss in H1

Summary

The company recognised a non-cash impairment of A$249mn against the Orbost gas processing plant.

by: Shardul Sharma

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Oz APA Reports Loss in H1

Australian gas infrastructure company APA on February 23 reported a net loss of A$11.7mn (US$9.2mn) in the six months to December 31 (H1) owing to a non-cash impairment of A$249mn recognised against the Orbost gas processing plant. It has reported a profit of A$175mn in the H1 of the previous year.  

Profit after tax excluding significant item was down 7% year/year to A$163mn. APA’s revenue in H1 was A$1.07bn, down 0.6% yr/yr.  

The company said it will work on expanding its capabilities into high-growth infrastructure markets by investing in contracted and regulated energy infrastructure in Australia and North America.  

APA said it has continued to execute its growth strategy across core gas infrastructure and progressively into related energy infrastructure consistent with market and customer needs. “Organic growth capital expenditure is now expected to exceed A$1bn over FY21-23, building on the $460mn Northern Goldfields Interconnect and A$38mn Gruyere Hybrid Energy Microgrid announced in the period,” it said. 

The company is also looking at energy infrastructure opportunities in North America. “Factors such as Covid-19, and the US federal election, have resulted in a number of opportunities being put on hold during 2020. More activity is expected in 2021 as conditions stabilise,” it said.