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Half Year Financial Results 6 Months Ended June 2005
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- Operating Highlights
- Regulation
- Strategic Direction
- Industry Issues
Chief Executive Officers Chief Executive Officers Presentation - - PowerPoint PPT Presentation
Chief Executive Officers Chief Executive Officers Presentation - - PowerPoint PPT Presentation
Chief Executive Officers Chief Executive Officers Presentation Presentation Mick McCormack Mick McCormack Agenda Agenda Operating Highlights Regulation Half Year Financial Results Strategic Direction 6 Months Ended
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Half Year Financial Results 6 Months Ended June 2005
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Senior Management Senior Management
Mick McCormack Chief Executive Officer Sandra Dureau General Counsel Austin James Company Secretary Rick Francis Chief Financial Officer Stephen Ohl General Manager, Ops
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Half Year Financial Results 6 Months Ended June 2005
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Continuation of Growth trend
FY2005 Profit FY2005 Profit
20 40 60 80 100 120 140 2001 2002 2003 2004 2005 Includes non-recurring items Net profit from recurring
- perations
CAGR = 13.5% pa
$m
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Half Year Financial Results 6 Months Ended June 2005
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Increased the Utilisation of Its Existing Assets
- QLD - new long-term contracts on the Roma to Brisbane Pipeline
- WA - new contracts on the Parmelia Gas Pipeline
- NSW - new third party revenues have been contracted for the Moomba to
Sydney Pipeline
Review of Operations Review of Operations
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Half Year Financial Results 6 Months Ended June 2005
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Roma to Brisbane Pipeline Braemar power station gas haulage contract (6PJ, 10 years) Incitec Urea plant (16PJ, 10 years) CS Energy variation agreement (15PJ, 12.5 years)
Queensland
Review of Operations Review of Operations
Carpentaria & Roma to Brisbane Pipelines
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Half Year Financial Results 6 Months Ended June 2005
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Parmelia Gas Pipeline Western Power - four year contract between $2-5 million revenue
Western Australia
Review of Operations Review of Operations
Parmelia, Mid-West & GGT Pipelines
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Half Year Financial Results 6 Months Ended June 2005
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Moomba to Sydney Pipeline Contracted GTD revenue decreasing ($5.6 million) Additional revenue from 3rd parties as retail contestability increasing Existing utilisation levels are expected to increase past 2006
New South Wales (SA and QLD)
Review of Operations Review of Operations
Moomba to Sydney Pipeline
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Half Year Financial Results 6 Months Ended June 2005
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SCC – not uncommon where certain ground and pipeline operating conditions exist – mainly identified in first 162kms of MSP APA has – run two investigative “pigs” – regulatory authorities fully informed – identified and repaired six SCC locations – identified, provided and programmed further repairs and pigging
Mooma to Sydney Pipeline - Stress Corrosion Cracking
Review of Operations Review of Operations
Aerial view
Location of the pipeline section recently investigated for SCC.
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Half Year Financial Results 6 Months Ended June 2005
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Work on further sites to be completed by March 2006 MSP has met and will continue to meet all safety, legislative and contractual commitments
Stress Corrosion Cracking Cont’d
Review of Operations Review of Operations
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Half Year Financial Results 6 Months Ended June 2005
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Strategic 5.3% Stake In GasNet
Review of Operations Review of Operations
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Half Year Financial Results 6 Months Ended June 2005
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Regulatory Matters Regulatory Matters
- Australia needs a regulation which encourages efficient and effective
development of infrastructure
- Regulators must have clear goals and revised regulatory framework
- Productivity Commission report is widely supported and should be
fully implemented
- Australian Energy Markets reform needs to recognise Gas and
Electricity are not the same
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Half Year Financial Results 6 Months Ended June 2005
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Strategic Direction Strategic Direction
Core Strategy Remains
Expanding utilisation of existing pipelines Diversification through
- Acquiring pipeline assets
- Complementary assets
Greenfields projects in Australia
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Half Year Financial Results 6 Months Ended June 2005
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Strategic Direction Strategic Direction
Complementary Assets
Diversification Uses existing skills Kogan North Kogan North CSM
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Half Year Financial Results 6 Months Ended June 2005
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Gas supply to south - eastern and northern Australia is the issue Conditional contracts increasing likelihood
- f PNG gas pipeline
PNG Gas Pipeline Project is progressing with mid 2006 targeted as project approval date APA has right to acquire minimum of 20%
- f the project from the consortium
QLD/NSW Interconnection Connects South West QLD Pipeline to MSP
Strategic Direction Strategic Direction
Cooktown Cairns Townsville Mackay Rockhampton Gladstone Brisbane Roma Mt Isa Ballera Cannington
QUEENSLAND
Weipa Bamaga
Torres Strait
Cape York
PAPUA - NEW GUINEA
Port Moresby Kutubu Gobe Kopi Moomba
AGL/Petronas PNG - Qld Gas Pipeline Upstream PNG Gas Pipeline Existing Pipelines
Gove
NORTHERN TERRITORY SOUTH AUSTRALIA
Greenfields Projects in Australia
PNG Pipeline Project
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Half Year Financial Results 6 Months Ended June 2005
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Natural Gas As Part of the Energy Mix
- Natural gas is the best “transition” fuel for the environment
- Natural gas consumption likely to double to 2100PJ by 2030*
- Gas should have a “Peak Body” to promote its benefits
* Source - ABARE
Industry Issues Industry Issues
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Half Year Financial Results 6 Months Ended June 2005
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The natural gas industry is evolving The value and importance of natural gas in Australia is increasing APA is developing strategies that build on its strong foundations and is well positioned to participate in opportunities as they arise APA is on track to, at least, maintain profitability and distributions in FY2006 Natural gas as a “transition” fuel will be significant in addressing environmental concerns This is an exciting time for our business
Summary Summary
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