The Australian Pipeline Trust (APA), the major ASX listed natural gas Pipeline Company in Australia, today announced its interim profit after tax for the period ended 31 December 2000 of $16.5 million. This represents the first full six months of operation since listing in June last year.
The Australian Pipeline Trust noted that in addition to the impact of seasonality, the reporting period was favourably impacted by a non-recurring revenue of $1.3 million, being the result of the timing of the commencement of the Gas Transportation Deed (GTD) relative to the float date.
The Distribution in respect of the quarter ended 31 December, 2000 will be 5 cents per unit. The income component, (2.5 cents) will be franked to the extent of 0.95 cents (38%) per unit.
“The impact of higher transport revenue across all our major pipelines combined with savings in operating expenses contributed to the favourable results,” said Jim McDonald, CEO, Australia Pipeline Trust.
“We have returned a good first half year result and delivered what we promised,” Mr McDonald said.
Total revenue of $124.7 million is inclusive of interest income of $6.5 million. Borrowings were reduced by $14.7 million. Investing activities resulted in cash outflow of $23.5 million mainly due to capital expenditure on the Peat Lateral project and final payment to AGL for the Trust Assets.
The remaining 15 percent interest in the Roma to Brisbane pipeline was purchased from APA’s joint venture partner, Interstate RBP Pipelines Pty Limited.
The Australian Pipeline Trust continues to develop its pipeline system with the major expansion of the Roma to Brisbane Pipeline and the completion of the construction and commissioning of the 110km Peat Lateral in late January 2001.
“This pipeline will bring significant quantities of coal seam methane into the Brisbane market, “ Mr McDonald said.
In late June 2000, a 15 year gas transportation agreement was entered into with CS Energy Limited to transport gas to a planned 385MW gas-fired, combined cycle electricity generation plant at Swanbank, near Brisbane. The transmission pipeline work will include; completion of the looping of the Roma Brisbane Pipeline between Wallumbilla and Swanbank; construction of approximately 15 kilometres of new lateral pipeline; and upgrading of compressor facilities.
An agreement was signed in August last year to construct a 15km lateral to the Midwest Pipeline in Western Australia. Mr McDonald says construction is scheduled to be completed prior to the end of the financial year and will directly connect to a gas-fired power station supplying electricity near Mt Magnet.
In January a connection was made from the Young to Wagga Wagga section of the Pipeline system to enable natural gas to be delivered to Tumut via a recently constructed pipeline.
"The Directors remain very positive about APA’s outlook and its ability to generate opportunities for growth in the longer term and we are confident that the results will exceed the prospectus forecast for the year ended 30 June 2001,“ said George Bennett, Chairman, Australian Pipeline Trust.