Energy infrastructure business APA Group (ASX:APA)
has posted its half year results for the six months ending December 31.
The company’s revenue rose 4.3 per cent to $1.118 billion while underlying EBITDA lifted 4.5 per cent to $859.8 million. It also reported a net profit after tax of $155.6 million, compared to a loss of $15.5 million loss a year ago.
APA said its results were driven by revenue growth across all segments of the business, particularly the Victorian Transmission System and Diamantina Power Station. It also said it benefited from tariff escalation with almost all of APA’s contract revenues linked to inflation.
Free cash flow rose 22.6 per cent to $515.1 million due to higher EBITDA, lower interest costs and lower tax payments.
APA declared an interim dividend of 25 cents per share, up 4.2 per cent from the prior year period.
“The 4.2 per cent increase in our interim distribution reflects our strong cash conversion, benefits from last year’s debt refinancing activity and our confidence in the outlook for the remainder of FY22," said chief executive officer Rob Wheals.
“With coal generated electricity retiring over the coming decades, we remain highly confident in the critical role for gas as a source of timely, cost effective and secure energy. It is an essential companion for the ongoing growth in renewable energy. Gas is also the critical energy source in high heat and hard to abate sectors, supporting Australia’s industrial businesses."
Shares in APA (ASX:APA)
are trading 1 per cent lower at $10.05.