Apa Group · ASX:APA
Apa — Shareholder Meeting (October 2016)
22 slides from Apa's shareholder meeting presentation, Oct 27, 2016
Slide 1: APA Group 2016 Annual Meeting: Chairman's Address
APA Group 2016 Annual Meeting 27 October 2016 Address by Chairman, Len Bleasel AM Ladies and gentlemen, As Chairman, I am delighted to present another solid year of results for APA. The FY2016 results represent the outcome of a consistent and prudent strategy of growth, investment and innovation. As
Slide 2: Distributions and total securityholder return
I will talk more about distributions in the next slide, however, total distributions for FY16 was 41.5 cents per security. APA’s long term vision, strategic planning and focused execution have seen the business continue to deliver prudent distribution growth and market-leading increases in value to
Slide 3: Solid and sustainable business; growth opportunities
We have built a business that is solid and sustainable and one we are very proud to be a part of. From having an appropriately structured balance sheet and risk framework, to using our in-house operational and development expertise to deliver energy when and where it is needed. But we continue to as
Slide 4: FY17 guidance and distributions
This is based on APA’s existing assets and businesses and includes full year contributions from acquisitions made and projects completed during FY16. Net interest costs are expected to be in the range of $510 million to $520 million. Your Board expects to pay total distributions in FY17 in the order
Slide 5: Address by Managing Director, Mick McCormack
Address by Managing Director, Mick McCormack Thank you, Chairman, and welcome, ladies and gentlemen. As the Chairman has just noted, APA delivered another solid year of growth during FY16. Investment and innovation continue to define our business and FY16 was no different. Before I comment more on t
Slide 6: Developing a more liquid gas market
APA supports the objective of developing a more liquid gas market. Infrastructure is a capital intensive business. Certainty is required to ensure that the parties are willing to continue to invest and innovate. Given how much the pipeline sector has contributed to delivering increasingly flexible s
Slide 7: Acquisitions and Integrated Operations Centre
Both were a perfect fit with APA’s growth strategy and investment criteria. Most importantly for Securityholders, both were operating cash flow accretive from day one of ownership. In terms of innovation, the completion of the transition of APA’s pipeline control rooms into the Integrated Operations
Slide 8: Renewables and midstream growth
The economic efficiencies of this project are not difficult to understand, given the solar panels will be able to connect to and share infrastructure that is already in use by the Emu Downs wind farm which has been owned and operated by APA since 2011. Our renewables and generation opportunities of
Slide 9: Customers and environmental management
Our customers are at the core of the success of our business. We pride ourselves on working with our customers to address their energy needs and make our infrastructure as flexible as it can be, so we can deliver for our customers and ultimately for the betterment of the energy industry. We recognis
Slide 10: APA Group annual meeting 27 October 2016
APA Group annual meeting 27 October 2016.
Slide 11: Disclaimer
disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). The information in this presentation does not contain all the information
Slide 12: Chairman's address
Chairman’s address Construction of APA’s newest pipeline – 293 km Eastern Goldfields Pipeline in WA – was completed ahead of schedule in FY2016
Slide 13: FY16 results
FY16 results 2016 change Statutory results EBITDA $1,330.5 m Up 4.8% Net profit after tax $179.5 m Down 67.9% Operating cash flow(1) $862.4 m Up 53.4% Operating cash flow per security 77.4 c Up 37.0% Normalised results(2) EBITDA from continuing businesses(3) $1,330.5 m Up 61.8% Net profit after tax
Slide 14: Sustainable distribution growth
sustainable distribution growth 19.1% compound annual growth rate Notes: (1) Distribution payout ratio: distribution payments as a percentage of operating cash flow. (2) Based on normalised operating cash flow. 5
Slide 15: APA strategy – connecting Australia to its energy future
APA strategy – connecting Australia to its energy future Organic growth opportunities $1.5bn of opportunities available over the short term (~3 years): Pipeline extensions and expansions c.$700 m Expand renewables and generation footprint c.$500 m Expand midstream asset footprint c.$300 m Grow
Slide 16: FY17 outlook
FY17 outlook • Based on current operating plans and available information, EBITDA for FY2017 is expected to be within a range of $1,425 million to $1,445 million • Net interest costs for FY2017 expected within a range of $510 million to $520 million • Distributions per security for FY2017 expected t
Slide 17: Managing Director's address
Managing Director’s address Full year contribution from APA’s Wallumbilla Gladstone Pipeline, QLD
Slide 18: APA in the dynamic gas market
APA in the dynamic gas market East coast gas consumption Gas Market Reform Group (appointed by COAG) to consider: • better information for trading in the market • the creation of trading hubs in North and South • easier access to transport infrastructure • better pricing information • encouraging mo
Slide 19: Achievements in FY16
achievements in FY16 Acquisitions Organic growth Diamantina acquisition • Enterprise value $700m • Long term contracts with Glencore’s Mount Isa Mines and the Queensland government owned Ergon Energy Eastern Goldfields Pipeline • Foundation shipper AngloGold Ashanti’s mines at Tropicana and Sunrise
Slide 20: Growth continues in FY17
growth continues in FY17 Pipeline extensions and expansions Expand renewables and generation footprint Reedy Creek Wallumbilla Pipeline Emu Downs Solar Project • Greenfield development • Greenfield development, subject to finalisation of commercial agreements • Capex spend ~$80m • Capex spend ~$50m
Slide 21: Sustainability
sustainability Our Stakeholders Our Values - STARS Customers • We will deliver value to our customers and create responsive solutions to meet their needs Environment • We will continue to deliver an environmentally responsible, safe and essential service Community • We will positively engage with th
Slide 22: For more information visit www.apa.com.au
for more information visit www.apa.com.au