New domestic supplies of gas, not import terminals, are needed to avoid shortages and price spikes, a gas pipeline operator warns, as annual profits soar.
"APA has delivered another solid financial and operating result ... with revenue, earnings and distribution growth," CEO Adam Watson said on Wednesday.
Underlying earnings rose 9.7 per cent to $1.89 billion for the year to June 30, underpinned by a solid performance from the east coast gas expansion, Basslink and an eight-month contribution from Pilbara Energy in the west.
Statutory net profit was $998 million, while free cash flow was steady at $1.07 billion on increased debt to fund the Pilbara acquisition, higher tax payments and changes in working capital.
The company forecast higher underlying earnings of $1.96-$2.02 billion for the 2025 financial year, citing "attractive market dynamics for the role of gas in securing Australia's energy security and decarbonisation".
Mr Watson said the Port Hedland Solar and Battery Project was nearing completion and agreements had been struck for gas transmission and pipeline projects.
The 45 megawatt generation facility and 35MW battery energy storage system to supply renewable energy to large mining customers in the Pilbara will work alongside APA's existing 210MW gas-fired power station at Port Hedland.
But activists are targeting the company's plans to construct several pipelines to support extensive fracking in the Beetaloo Basin.
APA is also developing twin pipelines for CS Energy's Brigalow gas peaking plant in Queensland and has a 20-year gas transport agreement with Senex Energy to bring additional supply to the east coast market from the end of 2025.
"These two gas transmission projects and long-term commitments for gas pipeline infrastructure reflect the growing understanding of the role of gas in Australia's energy transition," Mr Watson said.
But regulatory and policy certainty was critical for ongoing low-cost, low emissions and reliable domestic gas for the east coast, APA said.
According to APA, the alternative to more domestic gas supply would be LNG import terminals, which would drive up energy costs and emissions, and risk a re-run of 2021's energy shock.
Moody's Ratings senior analyst Nicholas Chapman said the 2024 results were "robust" and credit positive.
"Nevertheless, APA faces a key challenge of further aligning its portfolio with Australia's future energy infrastructure needs as the country transitions to net zero amid tight gas supply and policy uncertainty," he said.
APA declared a final distribution of 29.5 cents per security, bringing the year's total to 56 cents - up 1.8 per cent on a year earlier.
