Apa Group · ASX:APA
Apa — H1 2013 Earnings Presentation
32 slides from Apa's earnings presentation, Feb 20, 2013
Slide 1: Financial Results Half year ended 31 December 2012
For personal use only Financial Results Half year ended 31 December 2012 20 February 2013
Slide 2: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 1H 2013 Results Presentation 2
Slide 3: Delivering on long term strategy
Delivering on long term strategy For personal use only Expanded energy infrastructure portfolio – Increasing pipeline and gas storage capacity across most states – Successful acquisition of HDF – Addition of the Epic Energy assets enhance APA’s portfolio and establish east coast pipeline network –
Slide 4: Result overview
Result overview For personal use only $ million 1H13 1H12 Change Normalised results (1) EBITDA 324 270 up 20 % Profit 98 76 up 29 % Operating cash flow 213 157 up 35 % Operating cash flow per security (cents) 29.8 24.7 up 21 % Statutory results EBITDA 424 279 up 52 % Profit 212 66 up 221 % Operating
Slide 5: Strategic and operational highlights
Strategic and operational highlights Major assets operating at full capacity, including the newly acquired Epic Energy assets For personal use only Continuing expansion and development of infrastructure assets: Roma Brisbane Pipeline 10% increase in capacity via additional compression and 40km p
Slide 6: Successful completion of HDF acquisition
Successful completion of HDF acquisition For personal use only Addition of the South West Queensland Pipeline fulfils APA’s long term strategy of developing an east coast pipeline network Addition of the Pilbara Pipeline System to APA’s existing infrastructure positions APA to capture further gr
Slide 7: APA's transformed gas infrastructure portfolio
APA’s transformed gas infrastructure portfolio Larger interconnected portfolio For personal use only – East coast pipeline network – Ability to deliver enhanced gas transport and storage services to customers Pilbara Pipeline Increased industry efficiency System – Enhanced gas supply competition
Slide 8: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 1H 2013 Results Presentation 8
Slide 9: Key accounting dates
Key accounting dates For personal use only Consolidation of HDF accounts 9 October 2012 Transfer of responsible entity to APA 17 December 2012 HDF acquisition completed 24 December 2012 Repayment of all HDF’s debt facilities 24 December 2012 1H 2013 Results Presentation 9
Slide 10: Solid, consistent result
Solid, consistent result For personal use only $ million 1H13 1H12 Change Normalised Significant Statutory Statutory Normalised Statutory items Revenue excluding pass-through(1) 452.1 - 452.1 399.6 13.1 % 13.1 % EBITDA 324.5 99.2 423.7 278.9 12.2 % 51.9 % Depreciation and amortisation (63.8) - (63.8
Slide 11: Significant items - reconciliation
Significant items - reconciliation For personal use only $million 1H13 Significant items impacting EBITDA Incurred by APA Write back of transaction costs in respect of Allgas sale 18.6 Gain on APA’s previously held interest in HDF 142.3 Transaction and integration costs on acquisition of HDF (19.3)
Slide 12: EBITDA by business segment
EBITDA by business segment For personal use only $ million 1H13 1H12 Change 1H13 EBITDA by business segment Energy Infrastructure (continuing business) Queensland 64.3 41.7 54.3 % Energy Investments New South Wales 58.8 60.2 (2.3) % Asset 10% Management Victoria & South Australia 82.3 66.8 23.2 % 5%
Slide 13: EBITDA growth contributions
EBITDA growth contributions For personal use only $32 million $325 million $289 million ($19 million) $8 million $293 million $11 million $3 million $270 million up 9% Energy Investments up 35% Asset Management up 22% Energy Infrastructure up 5% 1H12 EBITDA Divested 1H12 EBITDA Energy Asset Energy 1
Slide 14: Energy Infrastructure: Queensland and New South Wales
Energy Infrastructure Queensland New South Wales For personal use only Roma Brisbane Pipeline expansion commissioned Moomba Sydney Pipeline – final year of 5-year in September 2012 expansion program South West Queensland Pipeline 3 months’ Spare capacity re-contracted in January 2013 contrib
Slide 15: Energy Infrastructure: Victoria, South Australia, Western Australia and Northern Territory
Energy Infrastructure Victoria & South Australia Western Australia & Northern Territory For personal use only 3% increase in gas flow due to cooler weather and Goldfields Gas Pipeline expansions – construction northern gas exports underway on compression and off-take facilities Euroa compresso
Slide 16: Asset Management and Energy Investments
Asset Management and Energy Investments For personal use only EBITDA Asset Management $40m Increased payment for services under long term contract $17.2m $20m Additional asset management revenue – GDI (EII) $0m 1H10 1H11 1H12 1H13 EBITDA Energy Investments $40m $30.7m Increased investment retu
Slide 17: Distribution payout metrics
Distribution payout metrics For personal use only $212.5 million ($68.8 million) Normalised Payments operating incurred by cash flow HDF $140.6 million $143.7 million Distributions Statutory $ million operating Management fees 3.6 Incentive fees 28.7 cash flow Bid defence costs 28.6 66.2% of normali
Slide 18: Fully covered distributions
Fully covered distributions For personal use only On target to deliver distribution guidance for FY 2013 1H13 distribution payout 60 ratio(1) of 66.2% (2) 51.9 52.6 52.5 50 48.2 Distribution components: 42.7 17 cents profit distribution 40 No capital distribution cents 34.4 35.0 29.8 30 32.8 29.
Slide 19: Capital expenditure
Capital expenditure For personal use only $ million 1H13 Major projects in 1H13 1H12 Growth capital expenditure Regulated (2) 13.9 Victoria Transmission System 21.6 Major Projects Roma Brisbane Pipeline expansion; South West Queensland Queensland expansion 23.7 13.3 Pipeline eastern haul and Moomba
Slide 20: Strong balance sheet
Strong balance sheet For personal use only $ million 31 Dec 2012 30 Jun 2012 Change Current assets 633 584.5 8.3 % Property, plant and equipment (1) 5,149 3,472.2 48.3 % Other non-current assets 1,963 1,439.4 36.4 % Total Assets 7,744 5,496.1 40.9 % Current debt 71 - nm Other current liabilities 386
Slide 21: Capital management
Capital management Cash and committed undrawn facilities of $712 million at 31 December 2012 For personal use only . Metrics 31 Dec 2012 30 Jun 2012 Gearing (1) 64.2 % 65.0 % Interest cover ratio 2.41 times 2.48 times Average interest rate applying to drawn debt(2) 7.46 % 7.39 % Interest rate ex
Slide 22: Capital management: debt maturity profile
Capital management Continue to target strong BBB/Baa2 investment grade ratings through maintaining sufficient For personal use only flexibility to fund organic growth and investment from internally generated and retained cash flows and, where appropriate, additional equity and/or debt funding Debt
Slide 23: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO 1H 2013 Results Presentation 23
Slide 24: Growth capital projects
Growth capital projects Capital projects with secure, long term returns For personal use only Diamantina Power Station Joint development (APA/AGL) 242 MW gas-fired generation Goldfields Gas Pipeline plus 60 MW back-up generation 2 x capacity expansion – 17 year contract Wallumbilla Compression compr
Slide 25: Outlook and guidance for FY 2013
Outlook and guidance for FY 2013 For personal use only Outlook Continued construction and development of expansion projects Integration of South West Queensland Pipeline and Pilbara Pipeline System Completion of the sale of Moomba Adelaide Pipeline System Guidance EBITDA – expected within a
Slide 26: Supplementary information
For personal use only Supplementary information 1H 2013 Results Presentation 26
Slide 27: Revenue by business segment
Revenue by business segment For personal use only $ million 1H13 1H12 Change Energy Infrastructure Queensland (1) 86.7 55.5 56.3% New South Wales 71.1 71.9 (1.2)% Victoria & South Australia 108.4 85.3 27.0% Western Australia & Northern Territory 107.0 96.7 10.7% Energy Infrastructure total 373.2 309
Slide 28: Debt facilities
Debt facilities Total committed debt facilities at 31 December 2012 For personal use only Facility Drawn $million(1) amount amount Tenor 2011 Bilateral borrowings (2) 300 275 3 years maturing July and August 2014 2011 Bilateral borrowing 150 0 5 years maturing October 2016 2011 Syndicated facility (
Slide 29: Regulatory update
Regulatory update APA’s major price regulated assets For personal use only Regulatory resets over the next five years 2012 2013 2014 2015 2016 2017 Victorian Transmission System Goldfields Gas Pipeline Roma Brisbane Pipeline Current regulatory period Next regulatory period Roma Brisbane Pipeline
Slide 30: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA Group assets and investments 23 Energy Infrastructure Asset Management 19 Queensland Commercial and/or operational services to: (1) Roma Brisbane Pipeline - Envestra Limited 18 23 NORTHERN 23 (2) Carpentaria Gas Pipeline - GDI (EII) - Allg
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline For personal use only Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). Summary information: This presentation contains su
Slide 32: For further information contact
For personal use only For further information contact Chris Kotsaris Delivering Australia’s energy Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: chris.kotsaris@apa.com.au or visit APA’s website www.apa.com.au