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Highlights:
- APA Group (ASX:APA) released its 1HFY23 results ended 31 December 2022 on Thursday.
- In 1HFY23, the company marked profit after tax of AU$878.9 million versus AU$857.7 million in pcp.
- APA expects to declare 55 cps as FY23 dividend, which would be 3.8% up on pcp.
Energy infrastructure company APA Group (ASX:APA) unveiled its results for the half year ended 31 December 2022 on Thursday, 23 February 2023. APA shares reacted positively to it and closed up by 1.408% at AU$10.80 on Thursday.
Let’s go through the APA Group’s 1HFY23 results to find out what worked in favour of the stock.
During the reported period, total revenue grew 8.3% to AU$1.5 billion, increasing from AU$1.38 billion in 1HFY22. Underlying EBITDA rose 2.5% to AU$878.9 million versus AU$857.7 million in pcp. Profit after tax for the first half period came to AU$190.7 million, improving 23.8% from AU$154.1 million YoY. EPS was 16.2 cents in the first half, rising 24.6% versus 13 cents.
APA Group’s business segment performances
In the 1HFY23 period, APA’s Energy Infrastructure total revenue was AU$1,098 million, up 5.7% from AU$1,038 million in pcp. EBITDA grew 5.9% to AU$906 million, from AU$855 million in pcp. The robust performance of this segment primarily gained from revenue related to Australian and US inflation indices. The segment also witnessed a better operating performance from various assets.
Asset Management segment reported total revenue of AU$64 million, up 5.8% from AU$61 million in pcp. EBITDA decreased 19.9% to AU$33 million, from AU$41 million in pcp. Weaker earnings from this segment were influenced by a change in the project along with lesser consumer contribution projects in comparison to pcp.
APA Group’s dividend
The company’s board for the 1HFY23 period have decided to make an interim dividend payment of 26 cps on 16 March 2023. It reflects a rise of 4% on pcp’s dividend of 25 cps. The dividend is not 100% franked and franking credits are available only on 3.64 cps.
The 1HFY23 dividend includes a 22.59 cps dividend from APA Infrastructure Trust along with 3.41 cps from APA Investment Trust.
APA Group’s FY23 outlook
The company has restated its earlier provided guidance which said that the FY23 dividend is anticipated to be 55 cps, including the first half’s dividend of 26 cps. The company’s expected FY23 dividend of 55 cps would denote 3.8% growth on pcp.
