APA Group 1H24 Financial Results Announcement

APA Group reported a 5.8% increase in Underlying EBITDA to $930 million for 1H24, driven by inflation-linked tariff escalation and solid performances from recent acquisitions.

APA Group 1H24 Financial Results Announcement

  1. APA Group reported a 5.8% increase in Underlying EBITDA to $930 million for 1H24, driven by inflation-linked tariff escalation and solid performances from recent acquisitions.

  2. Statutory net profit after tax surged to $1,049 million in 1H24, significantly influenced by the acquisition of Pilbara Energy and a substantial gain from the re-measurement of APA’s interest in GGTP.

  3. Free Cash Flow rose by 12.8% to $546 million in 1H24, attributed to increased earnings and the timing of a cash receipt, despite higher stay-in-business capital expenditure.

  4. APA Group invested $2.2 billion in capital, focusing on acquisitions like Pilbara Energy and organic growth projects such as the Northern Goldfields Interconnect pipeline.

  5. The company announced a 1H24 interim distribution of 26.5 cents per security, a 1.9% increase from 1H23, with FY24 distribution guidance reaffirmed at 56.0 cents per security.

  6. APA provided FY24 Underlying EBITDA guidance of $1,870m to $1,910m, reflecting the impact of the Pilbara Energy acquisition.

  7. Recent acquisitions, Pilbara Energy and Basslink, have performed in line with their business cases, and their integrations are progressing well.

  8. APA Group is focusing on sustainability, evidenced by progress with its Climate Transition Plan and the release of its inaugural Reconciliation Action Plan.

  9. The company has strengthened its balance sheet through an equity raising, new debt facilities, and the placement of new hybrid securities in 1H24.

  10. APA Group's strategic partnership with EDF Group aims to support the build-out of Australia’s renewable energy zone and other large electricity projects.

This announcement is a summary of the company approved ASX announcement on 22/2/2024.