First strike for APA on pay as chair chides gas policies
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The news: Energy infrastructure company APA group has suffered a first strike at its AGM, with 25.8% of shareholder votes opposed to the company's remuneration plan, while its chair pointed the finger at overly ambitious climate policies.
The numbers: APA shares have lost more than 23% in value this year, despite the company lifting full-year net profits for 2023 by 10.4% to $287 million. APA's price gained 1.1% today.
The context: Following the vote, APA chair Michael Fraser told shareholders the board would go back and review how it set targets for remuneration incentives. He also noted his frustration with "overly interventionalist" policies that "rattled investment confidence".
What they said: "While I applaud ambitious emission reduction targets, the reality is policy settings also need to ensure the lights stay on and energy remains affordable," Fraser told shareholders.
"If they don’t and there are rolling blackouts and further substantial increases in the cost of energy caused by a lack of reliable generation and a lack of natural gas supplies, it will cause political and economic upheaval."
The source: ASX Annoucnement
