Australian Pipeline Trust Unitholder Information Meeting George Bennett Chairman Sydney, 24 October 2002
Results in Summary Strong Earnings Growth $M 37.1 38 ! Total revenue +2.4% 36 34 ! Pipeline transportation 30.7 32 revenue +3.7% 30 28 ! Net profit after tax +20.8% 26 24 22 20 2002 2001 NPAT (after minorities) 2
Results in Summary (Cont’d) Continued Strong Earnings Growth $M 300 255.4 249.3 Other 13.9 250 13.9 Revenue 61.1 Other 61.5 200 Pipeline Revenue 150 180.4 Pipeline 173.9 Revenue 100 2002 2001 Revenue 3
Financial Summary (cont’d) Revenue by Pipeline $M MSP - Moomba to Sydney 110 105. 8* 104. 4 100 RBP - Roma to Brisbane 90 CGP - Carpentaria Gas 77. 9 76. 9 80 AGT - Amadeus Gas Trust 70 GGT - Goldfields Gas Transmission 60 MWP - Mid Western Pipeline 50 40 30 24. 1 24. 4 19. 8 16. 2 20 8. 5 10. 9 10 4. 3 3. 6 0 M S P A G T R B P C G P G G T M W P 2002 2001 * Includes $1.3m non-recurring revenue in 2001 a) GGT - is equity accounted contribution (not share of revenue) - actual GGT revenue +7.1% to $79.7m in 2002 b) MSP, AGT & GGT include passthrough revenue 4
Financial Summary Delivering What We Promised Actual Year ended 30 June 2002 2001 % Change $M $M EBITDA 132.2 127.5 3.7 Pre Tax Profit 59.1 53.3 11.0 Profit after tax & minoritie 37.1 30.7 20.8 Earnings per unit (cents) 15.2 12.6 20.6 5
Financial Summary (cont’d) 2002 Performance strengthened by:- • Growth in pipeline revenue • Continued management of costs • Reduction in tax rate • Fall in interest expense 6
Cash Flow Statement • Underlying cash generated from operating activities increased 9.8% from $78.7 million to $86.4 million. • Net operating cash flow reduced by $16.5 million due to minor increases in working capital and one-off cross period timing matters: – Commencement of Gas Transmission Deed (Moomba- Sydney Pipeline); – Pipeline tariff margin payments for the Amadeus Gas Trust; – Post-acquisition AGL loan settlement. 7
Distribution Increased C en t s p er u n i t T o t al P ai d F i n al A ct u al t o 30. 06. 02 Q 4 02 F Y 02 F Y 01 T o t al D i st ri b ut i o n 1 5 . 0 6 . 5 2 1 . 5 2 1 . 0 Inco m e D i st ri b ut i o n 9 . 0 6 . 5 1 5 . 5 1 2 . 5 - - F ranked C om ponent 1. 9 - U nf ranked C om ponent 9. 0 6. 5 15. 5 10. 6 C ap i t al D i st ri b ut i o n 6 . 0 - 6 . 0 8 . 5 D at e o f D i st ri b ut i o n 3 0 -S e p -0 2 Note: No franking credits expected until YEJ 2004. 8
Operating Highlights Queensland Roma to Brisbane Pipeline • Completion of Looping Stage Five to Ipswich completed. Looping Stage Six commenced. Coal Seam Methane contracts signed and gas delivered for power generation. Carpentaria Gas Pipeline • Construction of a compressor station at Morney Tank, 250 kms north of Ballera. Completion due in November 2002. 9
Operating Highlights (cont’d) Northern Territory Amadeus Gas Trust Pipeline • Constructed two spur lines supplying gas to new railway sleeper factories in Tennant Creek and Katherine for the Darwin to Adelaide railway line. 10
Operating Highlights (cont’d) Western Australia • Mid West Pipeline (WA) Additional customer (Hill 60 gold mine) has commenced taking gas for its generator. • Goldfields Gas Transmission Planning additional compression as load demand Increases. 11
Key Industry Issues • Need for a clearly articulated energy policy. • Need for additional gas supplies for southern and eastern Australia. • Need for revision of existing regulatory framework. 12
Australian Pipeline Trust Australia’s Leading Transporter of Natural Gas 13
Australian Pipeline Trust Unitholder Information Meeting Jim McDonald Managing Director Sydney, 24 October 2002
Regulatory Environment • Industry Discontented with Gas Access Code – Regulation is strongly resisted – North American investment withdraws – Supreme Court of W.A supports Epic – Greenfields draft guidelines rejected – Access Code review is imminent – Productivity Commission report is positive 15
Regulatory Environment (cont’d) • Moomba to Sydney Code Coverage Case – NCC has recommended coverage – Minister to consider the recommendation – It is unacceptable for our pipeline to remain covered whilst a competing pipeline is not. – Appeal provisions exist 16
Regulatory Environment (cont’d) • Goldfields Gas Transmission – Access Arrangement before W.A Supreme Court – GGT must protect its rights. 17
Regulatory Environment (cont’d) • Optimistic Outlook – Review of the Access Code for Natural Gas – Better climate for investment in the Industry. • EPIC Decision – Significant victory for transmission pipeline owners. • Foundation Contracts should be the basis for Third Party Access. 18
Gas in the National Fuel Mix • Gas the environmentally friendly & cleanest fossil fuel. • Fully integrated pipeline grid in southeast Australia with more flexible gas contract management will produce more responsive gas marketplace. • To maintain adequate gas supplies to Moomba – Timor Sea gas to Darwin – PNG gas to Queensland • Encouraged by work on coal seam methane, but industry still faces challenges . 19
Growth Strategy • Incremental Growth – Continuing to expand capacity and increase volumes in our existing pipelines. • Prudent Acquisitions • “Greenfields” – Gas to south east Australia – Timor Sea/ PNG/ Northwest Shelf • Expand the reach of Natural Gas. • Complementary business opportunities. 20
Summary • Our business is performing well. • Gas to Moomba remains a central issue. • We are defending our business well against a imperfect regulatory regime. • We continue to explore opportunities to grow our core business. • We are investigating investment opportunities in related businesses. • We are committed to maintaining our position as the leading transporter of natural gas in Australia. 21
We Deliver. 22
QUESTIONS ? 23
Thank you for your attendance. www.pipelinetrust.com.au
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