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APA

APA Group Releases Interim Results

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

APA Group (ASX: APA) has released its interim results shortly before market open today. APA Group is an Australian company which owns and operates natural gas and electricity assets. It is currently Australia’s largest natural gas infrastructure business.

 

APA

Australia’s largest natural gas infrastructure business, APA Group (ASX: APA) has released its interim results shortly before market open today. The company’s EBITDA and dividend distribution results remained in line with consensus expectations. (Credit: APA Group).

 

The business has reported EBITDA of $842.2m and dividend distributions of 23 cents per share. These results are in line with consensus expectations. APA has also maintained its FY20 EBITDA guidance range of $1660m-$1690m. Given a low interest rate environment, APA has also refinanced approximately $389m of higher cost debt – reducing borrowing costs. There were commissioning delays at the Orbost processing facility, further extended due to bushfire threat and air quality issues. The business still has approximately $1.4b of undrawn debt facilities, which is sufficient to meet capital expenditure needs. 

These numbers only reinforce the stability of APA as a stable business and its clear earnings visibility – generally with less surprises. Given this half’s results, the company is on track to pay a 50 cent per share dividend for the full year with franking credits attached as well – directly in line with consensus and expectations. APA pays a 4.4% dividend yield at current prices.

As would be expected with a company who reports in line with consensus expectations, the share price hasn’t moved and remains at around $11.38 per share, the same price as at close of market yesterday.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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