Pipeline operator APA has announced plans to acquire an energy-infrastructure business in Western Australia, signaling another year of growth in its distribution. Despite elevated inflation, APA's earnings have remained resilient, making it well-positioned for fiscal 2023.
Acquisition Plans and Equity Raise
APA intends to raise up to AUD 750 million (USD 481.9 million) in fresh equity to fund the acquisition of companies under the Alinta Energy Pilbara umbrella. The business has an enterprise value of AUD 1.72 billion (excluding stamp duty and transaction costs).
The equity raise will consist of a AUD 675 million underwritten placement of shares to institutional investors and a non-underwritten security purchase plan worth up to AUD 75 million.
In the 12 months through June 2024, APA expects a distribution of 56 Australian cents per security. This represents a 1.8% increase compared to the previous year's full-year payout of 55 cents per security.
Fiscal 2023 Performance
During fiscal 2023, APA reported a net profit of AUD 287 million, marking a 10% increase from the previous year's AUD 259.7 million. Underlying earnings before interest, tax, depreciation, and amortization (EBITDA) also rose by 2% to AUD 1.73 billion, driven by strong performance in the Energy Infrastructure segment.
APA is one of Australia's largest energy-infrastructure companies, owning and operating gas-transmission pipelines across the mainland, as well as gas storage facilities, power stations, and wind farms. Recently, APA has signed agreements with small companies to connect their natural-gas fields in the Northern Territory's Beetaloo Basin with pipeline networks serving major population hubs like Darwin.