APA Group (ASX: APA) expects EBITDA of AUD 1,960 – 2,020mn in FY25 following Pilbara Energy acquisition

4 min read | October 23, 2024 03:06 PM AEDT | By Team Kalkine Media

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APA Group (ASX: APA) expects EBITDA of AUD 1,960 – 2,020mn in FY25 following Pilbara Energy acquisition — Image source: Shutterstock

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Highlights

In FY24, APA recorded a 7.91% YoY revenue growth to AUD 2,591 million.

In FY25, statutory NPAT increased 247% YoY to AUD 998 million due to the full ownership of the Goldfields Gas Pipeline.

JPMorgan Chase & Co. acquired a 6.88% voting right in APA as of 17 October 2024.

In FY25, APA expects underlying EBITDA of AUD 1,960–2,020 million and a 1.8% increase in distribution to AUD 0.57 per share.

APA Group Limited (ASX: APA) is an ASX-listed energy infrastructure company, engaged in the management of portfolio of wind, solar, electricity and gas assets. The company addresses around half of the country’s gas usage.

In the financial year 2024 (FY24), the company recorded 7.91% YoY growth in its revenue to AUD 2,591 million and 9.74% YoY rise in underlying EBITDA to AUD 1,893 million. The growth was driven by improved performance from the east coast gas expansion and contribution from Pilbara Energy (for eight months). Pilbara Energy performance aligned with acquisition business case, informed APA.

During the reported period, statutory NPAT, including significant items, jumped over 247% YoY to AUD 998 million, underpinned by the remeasurement of the company’s pre-existing 88.2% interest in the Goldfields Gas Pipeline, as APA moved to 100% ownership of this asset as part of the Pilbara Energy transaction.

New shareholder of APA

Recently, the company notified that JPMorgan Chase & Co, and its associated companies became a holder in the firm by acquiring 6.88% voting right in the company, effective from 17 October 2024, demonstrating confidence of JPMorgan Chase & Co in the company.

Notably, UniSuper Limited and The Vanguard Group, Inc., have the maximum stakes in the firm with a shareholding of ~9.09% and ~5.95%, respectively.

Outlook

In FY25, the company expects to deliver underlying EBITDA of AUD 1,960 – 2,020 million following the acquisition of Pilbara Energy. Meanwhile, FY25 distribution is expected to increase by 1.8% to AUD 0.57 per share. The forecasted distribution strikes a balance between funding the organic pipeline of APA and maintaining investment-grade rating credits.

Share performance of APA

APA shares closed 0.28% higher at AUD 7.12 apiece on 23 October 2024 with a market cap of AUD 9.19 billion. Over the past one year, its share price has dropped by nearly 11.77%, while in the last three months, the share price has declined by almost 7.53%.

52-week high of APA is AUD 8.91, recorded on 15 December 2024 and 52-week low is AUD 7.06, recorded on 23 October 2024.

APA Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 23 October 2024. The reference data in this report has been partly sourced from EODHD/Others.

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