The Sydney-based company yesterday reported that its net profit for the six months to December 31, 2006, slipped to $32.27 million.
But it said its forecast annual net profit excluding significant items has edged up to $58-61 million.
APT last August said it was forecasting annual net profit before significant items of $55-61 million in 2006-07, compared with $60.66 million in 2005-06.
For the six months to December 31, net profit before significant items rose 4.4% to $32.6 million.
“The half-year result includes a full six-month contribution from the Murraylink electricity transmission business (acquired in March 2006) and part-year contributions form the Allgas and GasNet businesses, which were acquired during the half year,” APA said.
Total revenue for the period gained 30.3% to $243.3 million, while earnings before interest, tax, depreciation and amortisation increased 34.8% $134.9 million.
“The reduction in transportation revenue on the Moomba to Sydney Pipeline under the Gas Transportation Deed (GTD), which has been foreshadowed in previous financial reports, has been largely mitigated by additional revenue from other customers, as well as the contribution from new acquisitions,” the company said.
During the half year, APT acquired GasNet Australia for $446 million in cash and purchased the Allgas Energy distribution business in southeast Queensland and northern New South Wales via tender for $538 million.
Managing director Mick McCormack said the results showed the company was performing well and in line with expectations.
“APT is pleased with the initial contributions from Allgas and GasNet and with the full six-month contribution from Murraylink,” McCormack said.
“Our strategic focus over the past 18 months has been to grow securityholder distributions through the acquisition and operation of core and complementary energy transmission assets with diversified risk profiles.”
The company said it was pleased with its business performance.
“The fundamentals of the business are solid and management has the appropriate strategies in place to ensure continued growth,” it said.
“Cash flows derived from operations continue to be strong, with further growth being supplemented by recent acquisitions.
“Barring unforeseen circumstances, APT expects to be able to maintain the current level of cash distributions for the remainder of the current financial year, resulting in a 2007 full year distribution of 28c per security, an increase of 16.7 percent on the prior year.”
Meanwhile, AAP has reported that APT said negotiations with AGL Energy on terms for gas transportation on the Moomba-Sydney pipeline may result in a dispute.
APT and AGL have a contract covering gas transportation from 2007 to 2016.
“We are in discussions with AGL on the form of contract payments from January 1, 2007 and this is likely to result in a dispute between us and AGL in terms of resolving the form of these final payments,” AAP quoted APA group general manager of operations Stephen Ohl as saying.
