This announcement refers to the results of Australian Pipeline Trust (APA) as detailed in the Appendix 4B – Preliminary Final Report for the period 1 July 2000 to 30 June 2001.

APA has announced its first full year profit after tax and minorities for the year ending
30 June 2001 of $30.7 million. Chairman George Bennett said, “the Directors are pleased with this result, which is $6.1 million, 25%, above the Offer Document forecast of $24.6 million. APA has met or exceeded all the targets set in the Offer Document confirming it as the pre-eminent gas transmission pipeline company in Australia.”

Chief Executive Officer, Jim McDonald commented that “Since its listing, APA has
performed well and this is reflected in higher revenues on our major asset, the Moomba to Sydney pipeline, and the Roma to Brisbane and Carpentaria pipelines in Queensland.”

The Distribution in respect of the quarter ended 30 June 2001 will be 6.0 cents per unit, comprising an unfranked income distribution of 5.0 cents per unit and a capital
distribution of 1.0 cents per unit. This exceeds the distributions as forecast in the Offer Document by 0.5 cents per unit. As previously indicated it is not expected that APA will generate significant franking credits until at least 2004.
Full year results are summarised below:-

RESULTS IN SUMMARY

COMMENTARY

Revenue

The total revenue for the period was $249.3 million, an increase of 1% on the offer document forecast of $ 246.8 million. When total revenues are adjusted to exclude Other Pipeline Revenue, which is in the nature of passthrough revenue (which delivers no margin to APA), actual pipeline revenue growth was 4.8%. This higher revenue was as a result of increased throughput across most of the pipelines owned or controlled by APA, including the equity accounting of APA’s investment in SCP Investments Pty Limited in regard to Goldfields Gas Transmission pipeline.

Operating Costs and Borrowing Costs

Operating expenses excluding depreciation and interest were broadly in line with forecast when adjusted for the costs related to the passthrough revenue referred to above.

Net borrowing costs for the period were $50.4 million compared to forecast of $53.1 million, a saving of $2.7 million. This saving was as a result of lower debt levels and the securing of loan funds at more favourable interest rates than was budgeted.

Depreciation & Amortisation

Depreciation and amortisation were broadly in line with forecasts.

Operating Cash Flow – Excluding Interest

The operational cash flow generated by APA totalled $144.1 million during the period compared with the offer document forecast of $120.9 million, an increase of 19%. The increase was a result of:

• higher pipeline transmission sales revenue;
• effective management of working capital; and
• timing issues with regard to the commencement of the Gas Transportation Deed with AGL Wholesale Gas Pty Ltd.

HIGHLIGHTS OF THE PERIOD

The main highlights of the period were:-

• Acquisition of the 15% minority holding in the Roma to Brisbane pipeline
• Completion of 110 km Peat Lateral pipeline, which provides coal seam methane to the BP Bulwer Island Clean Fuels facility on the Brisbane River.
• New lateral and looping on the Roma to Brisbane pipeline to supply gas to CS Energy Ltd at Swanbank, near Brisbane. This project, which is presently under construction, is expected to be completed in late calendar 2001.
• Completion of 15 km lateral to the Midwest Pipeline in Western Australia to connect to a gas fired power station supplying electricity near Mt. Magnet.

REGULATORY MATTERS

Discussions and submissions to Governments and Regulators regarding the impact of the regulation of gas transmission pipelines continue to have a significant impact on APA’s resources.

East Australian Pipeline Limited (a wholly owned subsidiary of APA) has decided to pursue revocation of regulatory coverage over the Moomba to Sydney pipeline system following the Australian Competition Tribunal decision to revoke regulatory coverage over the competing Eastern Gas Pipeline, owned by Duke Energy.

A Federal government initiated review of the impact of regulation on the Pipeline Industry will commence following the current review of Part III A of the Trade Practices Act, and APA will contribute to that review.

DISTRIBUTION

Quarter ended 30 June, 2001.

APA has declared a final distribution for FY 2001 of 6.0 cents. The 6.0 cents per unit distribution will comprise an unfranked income distribution of 5.0 cents per unit and a 1.0 cent per unit capital distribution. As foreshadowed, it is not expected that there will be significant franking credits available for distribution until the FY 2004.

The distribution exceeds the distributions as forecast in the Offer Document dated 5 May 2000. During the year, APA has made a total cash distribution of 16 cents per unit comprised of Income 7.9 cents and Capital 8.1 cents. The income components of the distributions were franked to 45% giving an imputation credit of 1.83 cents per unit calculated at the corporate rate of tax of 34%.

The overall cash distribution in respect of the period ended 30 June 2001 will be 22.0 cents per unit, 0.5 cents per unit higher than the Offer Document.

The record date for determining unitholder’s entitlement to the distribution will be the close of business on 13 September 2001.

The date for payment of the distributions is 26 September 2001.

OUTLOOK

“The Natural Gas Industry in Australia has entered a new and exciting phase of its history,” Mr Bennett said. “New gas supplies need to be provided to the major markets of Southern and Eastern Australia by the middle of this decade. Significant investment decisions will be made in the next few years regarding gas reserves in the Timor Sea, Papua New Guinea, the Otway Basin, Coal Seam Methane deposits, and perhaps yet undiscovered gas. APA intends to position itself to be the preferred transporter of natural gas to market, irrespective of the source of gas. Our National footprint ensures that APA is well positioned to participate in, and benefit from, any natural gas projects.”

GENERAL MEETING

APA will be holding a general meeting at the Inter- Continental Hotel on Wednesday 24 October 2001 at 10.30 am to offer the opportunity for unitholders to meet and discuss our performance in this, our first full year.

FINANCIAL REPORT MARCH 2000 TO JUNE 2001

The upcoming Financial Report of the Australian Pipeline Trust (APA) will reflect the results of the Group in respect of its initial financial year, being the period 17 March 2000 through 30 June 2001. This financial report will reflect the trading results of the Group since it acquired the pipeline assets from The Australian Gas Light Company on 13 June 2000.