APA Group Delivers Solid Earnings Growth for FY24
APA (APA) Share Update August 2024 Tuesday 27th
APA Group Reports Strong Earnings Growth for FY24
APA Group (ASX: APA), a leading Australian energy infrastructure business, has announced its financial results for the year ending 30 June 2024, showcasing significant growth in earnings and distributions.
Instant Summary:
- Underlying EBITDA of $1,893 million, a 9.7% increase from FY23.
- Total statutory revenue of $2,591 million, up 7.9%.
- Statutory net profit after tax of $998 million.
- FY24 distribution of 56.0 cents per security, a 1.8% increase from FY23.
- Free Cash Flow of $1,073 million, a 0.3% growth compared to FY23.
- Capital investment of $833 million in growth projects.
- Completion of FY21-FY24 Sustainability Roadmap commitments.
Financial Performance
APA Group reported an underlying EBITDA of $1,893 million for FY24, marking a 9.7% increase from the previous year. This growth was driven by solid performance from the east coast gas expansion and an eight-month contribution from the Pilbara Energy System.
Total statutory revenue, excluding pass-through revenue, rose by 7.9% to $2,591 million. The statutory net profit after tax, including significant items, reached $998 million, mainly due to the remeasurement of APA Group’s pre-existing 88.2% interest in the Goldfields Gas Pipeline.
Distribution and Cash Flow
APA Group declared a FY24 distribution of 56.0 cents per security, up 1.8% from FY23. The free cash flow for the year was $1,073 million, showing a slight growth of 0.3% compared to the previous year.
Capital investment in growth projects amounted to $833 million, with significant progress made in the Port Hedland Solar and Battery Project, which is nearing completion.
Strategic Developments
APA Group has made notable strides in its business development activities, including the construction of the Kurri Kurri lateral pipeline in NSW and the Brigalow pipeline agreement. The company also completed its FY21-FY24 Sustainability Roadmap commitments and launched its inaugural Reflect Reconciliation Action Plan.
Looking ahead, APA Group has provided FY25 distribution guidance of 57.0 cents per security and an underlying EBITDA guidance of $1,960 million to $2,020 million.
The solid financial performance and strategic developments are likely to positively impact APA Group's stock price. The increase in distribution and free cash flow, along with significant capital investments, reflect the company's robust growth strategy and commitment to sustainability.
Investor Reaction:
Analysts are expected to react positively to APA Group's strong financial performance and strategic initiatives. The company's ability to integrate new assets and progress key projects will likely bolster investor confidence.
Conclusion:
Investors should consider APA Group's strong financial results and strategic developments when making investment decisions. The company's ongoing growth initiatives and commitment to sustainability position it well for future success.