Apa Group · ASX:APA
Apa — Australian Pipeline Trust — Shareholder Meeting (October 2004)
17 slides from Apa's shareholder meeting presentation, Oct 20, 2004
Slide 1: Australian Pipeline Trust Chairman's Presentation
Australian Pipeline Trust Chairman’s Presentation George Bennett Sydney, 20 October, 2004
Slide 2: Highlights
Highlights Fourth successive increase in net profit Active management of capital resources Achieved positive regulatory outcomes Involved in industry rationalisation Acquired Southern Cross Pipeline Group Assets 2
Slide 3: Full Year Results in Summary
Full Year Results in Summary Net Profit after Tax and minorities (NPATM) $M 2004 NPATM: 140 121.3 +195.50% from pcp. 120 2004 NPATM: Normalised +9.6% from pcp. 100 80 60 45.0 37.1 41.0 40 30.7 20 0 2001 2002 2003 2004 2004 Actual Normalised 3
Slide 4: Financials
Financials Non-recurring Items 2004 $M Due diligence cost write-off (5.8) Mid West Pipeline write-off (19.9) Tax consolidation benefit - SCP 7.0 Non-recurring items before income tax (18.7) Tax effect of non-recurring items 2.1 Tax consolidation benefit - APA 92.9 Non-recurring items after income ta
Slide 5: Full Year results - summary
Full Year results - summary NPATM impacted by non-recurring items Year ended 30 June 2004 2003 $M $M Net Profit after income tax and minorities 121.3 41.0 Non-recurring items after tax 76.3 - Operating profit after tax and minorities 45.0 41.0 5
Slide 6: Full Year Results in Summary
Full Year Results in Summary $M Revenue 300 249.3 255.4 271.9 285.1 278.1 250 92.5 Other Revenue 82.7 92.5 75.0 75.5 200 Pipeline Revenue includes SCP Equity 150 Contribution 173.8 180.4 189.2 192.6 185.6 100 2001 2002 2003 2004 2004 Actual Normalised 6
Slide 7: Financial Summary
Financial Summary Revenue for Full Year by Pipeline MSP - Moomba to Sydney 120 RBP - Roma to Brisbane 102.5 100 94.4 4.3 93.6 CGP - Carpentaria Gas 3.2 84.0 AGT - Amadeus Gas Trust 80 GGT - Goldfields Gas Transmission 60 70.2 62.7 91.2 98.2 MWP - Mid West Pipeline 40 20 27.1 26.1 27.0 26.4 23.4 21.4
Slide 8: Financials Cont'd
Financials Cont’d Actual Normalised Actual % Year ended 30 June 2004 2004 2003 Change $M $M $M vs normalised EBITDA 135.1 133.9 137.8 -2.8 Depreciation & Amortisation 22.6 22.6 24.1 +6.2 Net Interest Expense 46.3 46.3 48.6 +4.7 Profit before Tax 46.3 65.0 65.1 -0.2 Tax (75.2) 19.8 23.8 +16.8 Minorit
Slide 9: Financials Cont'd
Financials Cont’d Actual Normalised Actual % Change Year ended 30 June 2004 2004 2003 vs normalised Earnings per unit (cents) 49.2 18.3 16.8 +8.9 Cash Flow ($M) 82.3 82.3 90.6 -9.1 Gearing Borrowing as at Actual Actual Actual 30-Jun-2004 2004 2004 2003 Pre Acquisition Post Acquisition % % % $746.0 m
Slide 10: Financials Cont'd
Financials Cont’d Full Year Distribution Maintained Cents per unit Interims Paid Final Actual to 30/06/04 Q4 04 FY 04 FY 03 Total Distribution 15.0 6.5 21.5 21.5 Income Distribution 8.6 6.5 15.1 17.0 Capital Distribution 6.4 0.0 6.4 4.5 Date of Final Distribution 27/09/2004 • Final profit distributi
Slide 11: Financials Cont'd
Financials Cont’d Tax Consolidation APA elected to be treated as single entity for tax from 1 July 2003. Increase in tax values resulted in an income tax benefit of $92.9m Accounting depreciation remains unchanged Effective tax rate will approximate to corporate tax rate Future distributions will be
Slide 12: Progress Update
Progress Update Positive regulatory outcomes Moomba to Sydney – Decision to partially revoke coverage – Australian Competition Tribunal rejects valuation methodology on access arrangements for MSP – ACCC has now appealed to Federal Court of Australia, outcome expected next calendar year 12
Slide 13: Progress Update Cont'd
Progress Update Cont’d Positive regulatory outcomes Productivity Commission Final Report – Recommends lighter-handed regulation – Potential for “no coverage” for 15 years on greenfields pipelines on case-by-case basis – Price regulation applies when net benefits outweigh monitoring costs – Regulated
Slide 14: Progress Update Cont'd
Progress Update Cont’d Active Management of Capital Resources Raised A$493.2 million (net) in US Private Placement market; Activated Distribution Reinvestment Plan; Entered into tax consolidation; Raised equity of $61.2 million (net) 14
Slide 15: Outlook for 2005
Outlook for 2005 Acquisition of Goldfields and Parmelia assets will more than offset the contracted reduction in GTD payments; Emergence of competition and full retail contestability will begin to improve MSP revenues Expectations of improved business in Queensland Distribution expected to be at lea
Slide 16: APA Strategy
APA Strategy Continue to grow profitability by: - - Filling our existing pipelines and expanding their capacity - Acquiring minority interests - Participating in industry consolidation - Diversifying into other transmission pipelines and complementary industries (gas treatment, water, power) 16
Slide 17: Summary
Summary Strong performance Acquired Southern Cross Pipeline Group assets Positive regulatory outcomes Will be involved in consolidation and diversification Strong balance sheet 17
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