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APA Group Provides Update To Earnings Guidance Along With COVID-19 Update

Max Molinari

Max is an Equity Analyst with ASR Wealth Advisers. He has studied a Bachelor of Business and a Bachelor of Laws at the University of Technology, Sydney. Max currently holds RG146 qualifications.

APA Group (ASX: APA) provided an update to its FY20 earnings guidance yesterday, in light of delays in commissioning of the Orbost Gas Processing Plant – along with a Covid-19 update. APA has not yet completed the performance test required to meet commercial operations under the agreement with Cooper Energy, and thus revenues have been delayed. The revised EBITDA guidance is now $1635 – 1655m (a 2% downward revision to midpoint). Following this announcement, the market is still expecting $1664m.


APA Group (ASX: APA) has provided an update to its FY20 earnings guidance. The revised EBITDA guidance is a 2% downward revision from the previous midpoint. (Source: APA.com.au)

APA Group’s liquidity remains strong, with a cash position of $1.2 billion and committed undrawn facilities ($9.3 billion) available to assist the ongoing funding if needed.

The business notes it is able to reliably and safely operate assets and deliver its service with minimal impact due to Covid-19. To us, APA remains a stable and low-risk business.

The downward revision caused a sell off, with APA’s share price falling 4% at market open, however the stock has continued to recover throughout the day and is down 1.8% as at midday.



This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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ASR has no position in any of the stocks mentioned.

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