APA Group (ASX:APA) Announces 1H25 Earnings Growth and Growth Projects
Financial Performance
APA Group reported a 9.1% increase in underlying EBITDA to $1,015 million for the half-year ending December 31, 2024, compared to $930 million in 1H24. Total statutory revenue rose by 7.1% to $1,364 million. Free cash flow grew by 3.6% to $552 million. Statutory NPAT decreased significantly to $34 million from $1,049 million in 1H24 due to prior period acquisitions.
Growth Projects
The company invested $339 million in growth projects, including the completion of the Port Hedland Solar and Battery project and the Kurri Kurri lateral pipeline project. APA is advancing the East Coast Gas Grid expansion and has secured Priority Project status for the Hamersley Range and Burrup electricity transmission corridors. A five-year East Coast Gas Grid Expansion Plan has been announced.
Distribution
APA’s Board declared an interim distribution of 27.0 cents per security for 1H25, a 1.9% increase from the previous year’s 26.5 cents. The distribution comprises payments from both APA Infrastructure Trust and APA Investment Trust and is set to be paid on March 17, 2025.
FY25 Outlook
APA reaffirmed its FY25 distribution guidance of 57.0 cents per security, a 1.8% increase on FY24. Underlying EBITDA guidance for FY25 remains between $1,960 million and $2,020 million, supported by a strong balance sheet and an organic growth pipeline of approximately $1.8 billion.
Executive Comments
Adam Watson, CEO and Managing Director, stated, “APA has delivered a strong financial and operating result for the half with growth in revenue, earnings, free cash flow and distribution. Today’s result demonstrates the strength of our underlying business, our continued focus on operational excellence and asset reliability, and our work to drive further cost optimisation, which is designed to increase free cash flow, support growth projects and ensure we can continue to deliver for investors.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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