APA Group · ASX:APA
APA — Australian Pipeline Trust — 5th Annual UBS Australasian Utilities Conference 2004
19 slides from APA's conference presentation, Nov 29, 2004
Slide 1: 5th Annual UBS Australasian Utilities Conference
Australian Pipeline Trust 5th Annual UBS Australasian Utilities Conference Michael McCormack Chief Operating Officer Sydney, 29 November, 2004
Slide 2: Agenda
Agenda < Overview of YEJ2004 Results < Frequently asked questions - Consolidation - Regulation - Gas supply to South-east Australia - Stress Corrosion Cracking on MSP - Opportunities - Diversity - APA vs Infrastructure Investment Vehicles 2
Slide 3: Gas Pipelines 2004
Gas Pipelines 2004 APA pipelines Other pipelines AGT CGP GGT RBP MWP MSP CWP PGP APA Pipelines 2004 Amadeus Gas - AGT Carpentaria Gas Transmission - CGP Central West - CWP Goldfields Gas Transmission - GGT Mid West Pipeline - MWP Moomba to Sydney - MSP 7 Gas - PGP Parmelia Roma to Brisbane - RBP 3
Slide 4: Highlights for YEJ 2004
Highlights for YEJ 2004 < Fourth successive increase in net profit < Active management of capital resources < Achieved positive regulatory outcomes < Involved in industry rationalisation < Acquired Southern Cross Pipeline Group Assets 4
Slide 5: Full Year Results in Summary
Full Year Results in Summary Net Profit after Tax and Minorities (NPATM) $M 2004 NPATM: 140 121.3 +195.50% from pcp. 120 2004 NPATM: Normalised +9.6% from pcp. 100 80 60 45.0 37.1 41.0 40 30.7 20 0 2001 2002 2003 2004 2004 Actual Normalised 5
Slide 6: Financials
Financials Non-recurring Items 2004 $M Due diligence cost write-off (5.8) Mid West Pipeline write-off (19.9) Tax consolidation benefit - SCP 7.0 Non-recurring items before income tax (18.7) Tax effect of non-recurring items 2.1 Tax consolidation benefit - APA 92.9 Non-recurring items after income ta
Slide 7: Financial Summary
Financial Summary Revenue for Full Year by Pipeline MSP - Moomba to Sydney 120 RBP - Roma to Brisbane 102.5 100 94.4 4.3 93.6 CGP - Carpentaria Gas 3.2 84.0 AGT - Amadeus Gas Trust 80 GGT - Goldfields Gas Transmission 60 70.2 62.7 91.2 98.2 MWP - Mid West Pipeline 40 20 27.1 26.1 27.0 26.4 23.4 21.4
Slide 8: Highlights: Active Management of Capital Resources
Highlights Active Management of Capital Resources < Raised A$493.2 million (net) in US Private Placement market; < Activated Distribution Reinvestment Plan; < Entered into tax consolidation; < Raised equity of $61.2 million (net) 8
Slide 9: Highlights: Positive regulatory outcomes
Highlights Positive regulatory outcomes < Moomba to Sydney – Decision to partially revoke coverage – Australian Competition Tribunal rejects valuation methodology on access arrangements for MSP 9
Slide 10: Highlights: Industry Rationalisation
Highlights Industry Rationalisation < Industry rationalisation is now nearly complete < Bid costs of $5.8 million were necessary to ensure APA did not over bid < APA was successful in acquiring Southern Cross Pipeline Group assets at a good price 10
Slide 11: Acquisition of Southern Cross Pipeline Assets
Highlights Acquisition of Southern Cross Pipeline Assets < Goldfields Gas Transmission Pipeline – 1,380km pipeline – Transports competing gas streams from Harriet and East Spar, NW Shelf to North Eastern and Eastern Goldfields regions in WA – Capacity 105 TJ/d increasing to 164 TJ/d under full compr
Slide 12: Western Australia
Western Australia Broome NORTH WEST SHELF Port Hedland Dampier Onslow Newman GOLDFIELDS GAS TRANSMISSION Carnarvon PIPELINE Mt Magnet DONGARA Geraldton PROCESSING Windimurra FACILITY Kalgoorlie PARMELIA PIPELINE MONDARRA PERTH Esperance FACILITY 12
Slide 13: Mondarra Gas Storage Facility
Mondarra Gas Storage Facility Current Development Features < Tailored to suit customer requirements < Deliverability: currently up to 10 TJ/d < Injectivity: currently up to 10 TJ/d < Further development potential to 150 TJ/d < Mondarra Junction: by 2005, capacity to increase to 100TJ/d 13
Slide 14: Portfolio Diversification
Portfolio Diversification MSP Reliance Reduced APA 2004 Revenues APA 2004 Revenues Pro forma pre-acquisition Pro forma post acquisition Other Other Parmelia 4% 3% 7% GGT MSP 22% 32% (55% SCP MSP revenue 41% share) (100% SCP GGT revenue 32% share) CGP 12% AGT 7% AGT CGP RBP RBP 9% 9% 10% 12% Note: GG
Slide 15: FAQs
FAQs < Consolidation – Industry – Infrastructure ownership < Regulation – Moomba Sydney Pipeline appeal – Goldfields Gas Transmission Pipeline – Derogations in QLD – Productivity Commission review < Gas supply to South-east Australia – Impact of CBM – PNG - difficult to aggregate 150 PJ/annum – Tran
Slide 16: FAQs (cont'd)
FAQs (cont’d) < Stress corrosion cracking on MSP – Remote area in SA – Pressure management plan implemented – Repair & rehabilitation program being prepared if required < Opportunities – Incremental – Minorities – Complementary/diversification – Greenfields • PNG Pipeline • Trans-Territory Pipeline
Slide 17: FAQs (cont'd)
FAQs (cont’d) < Diversity – Re-balance portfolio – Non-core opportunities < APA vs Infrastructure Investment Vehicles – APA is an active manager – Risk/rewards of business performance accrues to APA 17
Slide 18: Summary
Summary < Strong performance < Acquired Southern Cross Pipeline Group assets < Positive regulatory outcomes < Will be involved in consolidation & diversification < Strong balance sheet 18
Slide 19: We Deliver
We Deliver www.pipelinetrust.com.au
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