APA Group makes first-half gains on Pilbara Energy acquisition
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The news: Infrastructure group APA posted strong first-half results, aided by returns from the recently acquired Pilbara Energy System.
The numbers: APA's net profit after tax including significant items grew to $1.05 billion from $191 million during the six months to December 2023. The group benefited from a $975 million uplift on the valuation of its interest in the Goldfields Gas Transmission Pipeline, after it acquired Pilbara Energy last year.
Profit after tax excluding significant items, however, dropped 61% to $74 million from $191 million the year prior.
Elsewhere, APA's total segment revenue for the six months rose 8.2% to $1.3 billion, compared to $1.2 billion.
Underlying earnings increased by 5.8% to $930 million.
APA reaffirmed its previous guidance for FY24 distributions of 56 cents per security, which represented a 1.8% increase on the prior corresponding period.
The context: The Sydney-based energy infrastructure business said that its first-half earnings were bolstered by inflation-linked tariff escalation and solid performances from recent acquisitions, including a six-month contribution from Basslink and a two-month contribution from Pilbara Energy.
The source: ASX announcement
