APA Group shares rise despite HY profit and revenue missing estimates
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More news: APA Group shares jumped despite the natural gas infrastructure business missing market estimates for first-half profit and revenue.
APA shares were up 8% to $7.14 at 3:55pm AEDT, having retreated nearly 15% over the last 12 months.
UBS analysts said that while APA's first-half profit missed expectations due to materially higher net finance costs, underlying earnings were in line with forecasts.
They noted that investors will be focused on how APA funds growth in the Pilbara, including two committed new development corridors under the Western Australian government's Pilbara energy transition plan.
APA Group first-half profit tumbles 97%, misses estimates
The news: Energy infrastructure company APA Group reported a sharp slide in first-half net profit to $34 million, reflecting the acquisition of the Pilbara Energy in the prior corresponding period and the absence of last year’s gain on its interest in the Goldfields Gas Transmission Pipeline.
The numbers: Analysts surveyed by Visible Alpha had expected profit after tax of $91 million, down from $1.05 billion in the first half of 2024, which included a $975 million revaluation uplift after it acquired Pilbara Energy.
The company will pay an interim distribution of 27 cents per share, up 1.9% from a year ago.
The company expects FY25 distributions of 57 cents per share, an increase of 1.8% on FY24. It reaffirmed underling earnings guidance of $1.96 billion to $2.02 billion.
The context: The Sydney-based group said the result highlights the successful integration of its Pilbara business, with the new assets delivering $66 million in earnings for the half. Its growth pipeline in the Pilbara is also progressing, it said, with construction of its Port Hedland solar and battery project completed in December.
The sources: ASX release, UBS research
