APA Group full-year profit drops to $129m, underlying earnings hit guidance
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The news: Energy infrastructure owner APA Group has posted a full-year net profit after tax of $129 million, down from $998 million last year which benefitted from $879 million in favourable significant items.
Excluding these items, statutory profit was 8.4% higher year on year. Analysts had expected profit of $125 million, according to Visible Alpha data.
The numbers: Statutory revenue grew 4.7% year on year to $2.7 billion. Underlying earnings were up 6.4% to $2 billion, hitting the top end of guidance.
The company declared a final distribution of 30 cents per share, up from 29 cents per share a year earlier, and level with market estimates.
Total distributions came to 57 cents per share, marking a 1.8% uplift year on year. APA expects FY26 distributions to be 58 cents per share, marking a further 1.8% rise.
The context: APA said the result was boosted by a strong performance from its gas transmission and storage business and a full-year contribution from its Pilbara Energy System business.
The company also benefitted from targeted cost reduction initiatives, with a FY26 cost-out target of around $50 million.
APA, which announced the $47 million sale of its networks business on Tuesday, said it was also supported by favourable regulatory outcomes during the year, including the Australian Energy Regulator's decision to not regulate the South West Queensland Pipeline in December.
What they said: "We are confident in the long-term critical role gas will play across Australia," said APA's CEO and managing director Adam Watson.
"Our East Coast Gas Grid Expansion Plan, early works in the Beetaloo, opportunities in gas-powered generation and ongoing growth in remote power generation in the Pilbara, demonstrate how we expect our core business will underpin our growth for years to come."
The source: ASX
