Each year APA works hard to maintain our ranking as Australia's number one energy infrastructure business
Whilst we own and/or operate thousands of kilometres of pipelines and hundreds of megawatts of power generation and other energy assets totalling $19 billion, we believe how we conduct our operations is key to being a sustainable business.
For our five stakeholder groups - investors, customers, the environment, communities and employees - we create value and responsibly use resources available to us, without compromising the needs of future generations.
That's what sustainability means to APA.
During the financial year, the ASX Corporate Governance Council introduced a new Corporate Governance recommendation 7.4, regarding the expectation by listed companies to report on the way in which they manage material economic, environmental and social sustainability risks.
APA has an established and an effective risk management framework, whereby risks are measured against both probability of occurrence and severity of consequence. These are then captured in a centralised risk management application and are reviewed by APA management on an ongoing basis, with oversight by APA's Board Audit and Risk Management Committee. As part of our Sustainability Report, we have detailed key sustainability risks and our risk management strategies.
We will continue to be a reliable and attractive investment which delivers superior returns for securityholders by:
- Achieving reliable and sustainable earnings growth by focusing on long-term revenue and reduced costs.
- Maintaining a strong and robust balance sheet.
- Identifying and evaluating additional attractive infrastructure style investments in related energy businesses.
- Total securityholder return of 30 per cent for FY2015.
- Maintained investment grade credit ratings (BBB/Baa2).
- Established a US$4.1 billion two year syndicated bridge facility in preparation for purchase of the Wallumbilla Gladstone Pipeline. Following debt and equity raising as detailed below, the facility was no longer required and therefore cancelled.
- Successful debt and equity raising for the Wallumbilla Gladstone Pipeline acquisition via $1.8 billion rights issue and US$3.7 billion in the global debt markets.
- $830 million new syndicated bank debt facility established (July 2015), replacing existing $1.1 billion facility.
- Delivered investors a 4.8 percent increase in distributions.
- $343.1 million of organic growth capital expenditure.
- Market capitalisation increased by 59.5 percent in FY2015.
ACTIONS FOR 2016
- Progress or complete current growth capital projects underway.
- Continue to evaluate and develop additional revenue streams in related energy businesses.
- Maintain investment grade credit rating levels.
KEY SUSTAINABILITY RISKS
- Debt and equity - Ensuring continued support from debt and equity markets for ongoing capital requirements. Inability to secure new debt facilities at appropriate quantum and price may adversely affect APA's operations and/or financial position and performance.
- APA's investment decisions are made and its balance sheet is utilised with a continuous focus on maintaining long term investment grade credit ratings.
- A diverse portfolio of long-life assets underpinned by regulated and long term bilateral agreements, underscores APA's ability to service debt and sustain steady equity distributions.
- Maintain diversified funding base and access to deep and liquid global debt capital and banking markets.
- Financial results and other salient developments are communicated regularly to investors.
As at 30 June 2015, APA had over 79,000 securityholders holding 1.1 billion securities, with the top 20 investors holding 61.1 per cent of securities. Currently, approximately 70 per cent of APA's investors are based in Australian and/or New Zealand.
APA issued a total of 278,556,562 new securities during December 2014 and January 2015 as a result of a 1 for 3 accelerated renounceable entitlement offer to existing securityholders, raising $1.8 billion to help fund the Wallumbilla Gladstone Pipeline acquisition. The new securities were issued at $6.60 per security in December 2014 and January 2015, with solid support from APA's existing securityholders. Furthermore in March 2015, APA raised US$3.7 billion in the international debt capital markets, across three currencies and five tenors.
IN THE PIPELINE
2016 - BEYOND
We only look forward at APA as to what opportunities for growth lay ahead, never resting on our laurels of what we've achieved. However, we also believe it's healthy to acknowledge our significant growth and success since listing 15 years ago. That's why our celebratory timeline starts at financial year 2015 - like you, we're keen to see what's next in 2016 and beyond, but we're proud of our achievements over the last 15 years.
MARKET CAP $9.2B
SECURITY PRICE $8.24
Wallumbilla Gladstone Pipeline acquisition, underpinned by
20 year take-or-pay gas transportation agreements. APA's largest acquisition
Diamantina and Leichhardt Power
Stations officially opened, underpinned
long term electricity supply contracts until 2030.
SECURITY PRICE $5.73
2013 - 2011
Maximising the value of APA's portfolio through consolidation and expansion - we're more than the sum of our parts.
Completed acquisition of Hastings Diversified Utilities Fund. Creation of APA's East Coast Grid through the addition of the South West Queensland Pipeline. Emergence of the West Coast Grid with acquisition of Pilbara Pipeline System.
Commenced expansion of APA's compression capacity at the Wallumbilla Gas Hub.
Capacity expansion of the Goldfields Gas Pipeline.
Emu Downs wind farm acquisition in the Perth area energy precinct, underpinned by 20 year electricity supply contracts.
Acquisition of the Amadeus Gas Pipeline in the Northern Territory.
Fivefold capacity expansion of Mondarra Gas Storage Facility in the Perth area energy precinct.
Capacity expansion of the Roma Brisbane Pipeline.
SECURITY PRICE $3.45
2010 - 2009
APA obtained investment grade credit ratings from Standard & Poor's (June 2009) and Moody's (April 2010).
2010 - 2008
Enhanced APA's asset footprint by means of capacity expansion, pipeline development and acquisitions.
Acquired the Berwyndale to Wallumbilla Pipeline.
Established Energy Infrastructure Investments (EII) for APA annuity style assets.
Completed construction of the Bonaparte Gas Pipeline.
Acquired the Central Ranges Pipeline.
2007 - 2006
Start of ongoing acquisition and development of complementary assets for the APA portfolio.
APA fully internalised asset management and operational services.
APA acquired Origin Energy Network (Jun/Jul 2007) assets including interests in SEA Gas Pipeline and the Envestra gas distribution network along with the long term operations and management contract for Envestra assets.
APA completed construction and commissioning of Daandine (Jan 2007) and X41 (Nov 2007) Power Stations.
APA completed construction and commissioning of Kogan North (Mar 2006) and Tipton West (Mar 2007) gas processing facilities.
APA acquired the Murraylink (Mar 2006) and Directlink (May 2007) electricity interconnectors.
Acquisition of the Victorian Transmission System (formerly GasNet).
Acquisition of Allgas gas distribution network in Queensland.
2005 - 2001
Period of acquisition of minority interests in major APA pipelines consolidating our ownership positions across Australia.
Acquired the remaining 30% interest in the Carpentaria Gas Pipeline.
SECURITY PRICE $3.45
Goldfields Gas Pipeline interest increased to 88.2%.
Acquired Mondarra Gas Storage Facility, along with the Parmelia Gas Pipeline.
Acquired the remaining 15% interest in the Roma Brisbane Pipeline.
SECURITY PRICE $2.10
13 JUN 2000
APA was listed on the Australian Stock Exchange. Foundation contract was on the only 100% owned Moomba Sydney Pipeline.