Australian Pipeline Trust (APT) reported a net profit for the six months to December 31, 2004 of $25.72 million, up from $22.1m in the corresponding period in 2003.

APT managing director Jim McDonald, who is retiring at the end of the current financial year, said he was leaving the company in a strong position.

"The recent acquisitions and new contracts give the company excellent prospects to continue this growth," McDonald said.

"We have also begun advanced planning to expand our newly acquired Mondarra gas storage facilities in Western Australia, and will continue to look for innovative ways to diversify our earnings."

McDonald said the result continues the company's continuous profit improvement in each reporting period since listing in 2000.

"The improved performance was largely due to (APT's) acquisition of CMS Energy Corporations interest in the Parmelia and Goldfields Gas Transmission pipeline assets in Western Australia and increased revenue from the Roma to Brisbane pipeline," he said.

A lower effective tax rate, due to an increased tax base of assets, also helped to underpin the result, the company said.

The Parmelia and Goldfields pipeline acquisitions in Western Australia, and the acquisition of the remaining 30% of the Carpentaria Gas Pipeline, would be generate cash flow and earnings from year one, McDonald said.

"[The company] has also entered into several new contracts for the Roma-to-Brisbane pipeline, including a 10-year transportation agreement with Incitec Pivot for its Gibson Island urea plant and an agreement with CS Energy in February to increase supply to the Swanbank E Power station," he said.

APT said pipeline transportation revenue of $124.5 million in the first half, up 45% from the previous corresponding period.

Total revenue was $179.15 million, up 27% from the first half of 2003/04.

The interim distribution was 5.5 cents, up from five cents previously.

APA’s chief operating officer Mick McCormack was this month named as Mr McDonald’s replacement as chief executive officer.