The company said its pipeline transportation revenues were up 14.5%, new supply agreements and projects were locking in long-term value, and operating costs had been reduced by 7.6%.
Chairman George Bennett said the company's business fundamentals were sound and management strategies were in place to ensure continued growth.
"Barring unforeseen circumstances, it is expected that for the current year, the business is on track to increase net profit after tax and minorities [NPATM] by between 10% to 13% on prior year NPATM before significant items," Bennett said.
Earnings before interest, tax, depreciation and amortisation were $103.341 million, up 16.7% from the previous corresponding period.
CEO Mick McCormack said the company was evaluating several projects aimed at guaranteeing long-term revenue.
“We are installing a $15 million compressor to expand the Goldfields Gas Transmission pipeline in Western Australia to create additional capacity to transport gas for the Hamersley Iron mine at Paraburdoo,” he said.
“We now have a 16-year contract to deliver gas to the Hamersley Iron Mine, and we have also entered into a seven-year agreement with Arc Energy to deliver gas through the Parmelia Gas Pipeline.
“We have also developed alternative revenue sources with an $11.5 million investment to date in a coal-seam gas processing facility at Kogan North on the Roma to Brisbane Pipeline in Queensland [and] have entered into a Heads of Agreement for the development of Arrow Energy’s 30MW power station at Daandine in Queensland.”
McCormack also said that significant gas sales commitments through the past six months strengthened the prospects of the Papua New Guinea gas pipeline project becoming a reality. The Moomba-to-Sydney pipeline is strategically placed to deliver gas from PNG when it proceeds.
“A formal project commitment from the AGL-Petronas consortium is expected before the end of the calendar year,” he said.
“APA has a right to purchase from AGL at least a 20 per cent interest in the PNG gas pipeline project, which will be an important part of the long-term gas supply solution for eastern Australia.”
