Apa Group · ASX:APA
Apa — H1 2005 Earnings Presentation
18 slides from Apa's earnings presentation, 2005
Slide 1: Chief Executive Officer's Presentation
Chief Executive Officer’s Presentation Mick McCormack
Slide 2: Agenda
Agenda Operating Highlights Regulation StrategicResults Half Year Financial Direction 6 Months Ended June 2005 Industry Issues 2
Slide 3: Senior Management
Senior Management Mick McCormack Stephen Ohl Rick Francis Chief Executive Officer General Manager, Ops Chief Financial Officer Half Year Financial Results 6 Months Ended June 2005 Sandra Dureau Austin James 3 General Counsel Company Secretary
Slide 4: FY2005 Profit
FY2005 Profit Continuation of Growth trend $m 140 CAGR = 13.5% pa 120 100 80 Includes non-recurring items Net profit from recurring 60 operations Half Year Financial Results 40 6 Months Ended June 2005 20 0 2001 2002 2003 2004 2005 4
Slide 5: Review of Operations: Increased Utilisation of Existing Assets
Review of Operations Increased the Utilisation of Its Existing Assets QLD - new long-term contracts on the Roma to Brisbane Pipeline WA - new contracts on the Parmelia Gas Pipeline NSW - new third party revenues have been contracted for the Moomba to Sydney Pipeline Half Year Financial Results 6 Mon
Slide 6: Review of Operations: Queensland
Review of Operations Queensland Roma to Brisbane Pipeline Braemar power station gas haulage contract (6PJ, 10 years) Incitec Urea plant (16PJ, 10 years) CS Energy variation agreement (15PJ, 12.5 years) Half Year Financial Results 6 Months Ended June 2005 Carpentaria & Roma to Brisbane Pipelines 6
Slide 7: Review of Operations: Western Australia
Review of Operations Western Australia Parmelia Gas Pipeline Western Power - four year contract between $2-5 million revenue Half Year Financial Results 6 Months Ended June 2005 Parmelia, Mid-West & GGT Pipelines 7
Slide 8: Review of Operations: New South Wales
Review of Operations New South Wales (SA and QLD) Moomba to Sydney Pipeline Contracted GTD revenue decreasing ($5.6 million) Additional revenue from 3rd parties as retail contestability increasing Existing utilisation levels are expected to increase past 2006 Half Year Financial Results 6 Months End
Slide 9: Moomba to Sydney Pipeline - Stress Corrosion Cracking
Review of Operations Mooma to Sydney Pipeline - Stress Corrosion Cracking Location of the pipeline section recently investigated for SCC. SCC – not uncommon where certain ground and pipeline operating conditions exist – mainly identified in first 162kms of MSP APA has – run two investigative “pigs”
Slide 10: Stress Corrosion Cracking Cont'd
Review of Operations Stress Corrosion Cracking Cont’d Work on further sites to be completed by March 2006 MSP has met and will continue to meet all safety, legislative and contractual commitments Half Year Financial Results 6 Months Ended June 2005 10
Slide 11: Strategic 5.3% Stake in GasNet
Review of Operations Strategic 5.3% Stake In GasNet Half Year Financial Results 6 Months Ended June 2005 11
Slide 12: Regulatory Matters
Regulatory Matters Australia needs a regulation which encourages efficient and effective development of infrastructure Regulators must have clear goals and revised regulatory framework Productivity Commission report is widely supported and should be fully implemented Australian Energy Markets reform
Slide 13: Strategic Direction
Strategic Direction Core Strategy Remains Expanding utilisation of existing pipelines Diversification through - Acquiring pipeline assets - Complementary assets Greenfields projects in Australia Half Year Financial Results 6 Months Ended June 2005 13
Slide 14: Strategic Direction: Complementary Assets
Strategic Direction Complementary Assets Diversification Uses existing skills Half Year Financial Results 6 Months Ended June 2005 Kogan North Kogan North CSM 14
Slide 15: Strategic Direction: Greenfields Projects in Australia
Strategic Direction Greenfields Projects in Australia PNG Pipeline Project Kutubu Gobe PAPUA - Kopi NEW GUINEA Gas supply to south - eastern and northern Port Torres Strait Moresby Australia is the issue Bamaga Cape Gove York AGL/Petronas PNG - Qld Gas Pipeline Upstream PNG Gas Pipeline Conditional
Slide 16: Industry Issues
Industry Issues Natural Gas As Part of the Energy Mix Natural gas is the best “transition” fuel for the environment Natural gas consumption likely to double to 2100PJ by 2030* Gas should have a “Peak Body” to promote its benefits * Source - ABARE Half Year Financial Results 6 Months Ended June 2005
Slide 17: Summary
Summary The natural gas industry is evolving The value and importance of natural gas in Australia is increasing APA is developing strategies that build on its strong foundations and is well positioned to participate in opportunities as they arise APA is on track to, at least, maintain profitability
Slide 18: We Deliver
We Deliver www.pipelinetrust.com.au