AmazonScience/document-haystack

1Performance 2Financial performance3Earnings before interest and tax (EBIT) and EBIT before depreciation and amortisation (EBITDA) excluding significant items are 4financial measures not prescribed by Australian Accounting Standards (AIFRS) and represent the profit under AIFRS adjusted for 5specific significant items. The Directors consider these measures to reflect the core earnings of APA Group, and therefore these 6are described in this report as ‘underlying’ measures.7In FY23, APA delivered a solid result, as shown in the table below. Underlying EBITDA increased 2.0% to $1,725 million (FY22 8$1,692 million) representing growth from the Energy Infrastructure segment, partly offset by lower contributions from the Asset 9Management and Energy Investment segments as well as higher corporate costs. Statutory profit after tax including significant 10items increased by 10.4% to $287 million (FY22 $260 million) benefiting from lower non-operating items and net finance costs. 11Free cash flow declined 1.0% to $1,070 million (FY22 $1,081 million) largely due to higher FY23 Stay in Business capital expenditure.12On 23 August 2023, the Directors announced a final distribution of 29.0 cents per security, taking APA’s FY23 total distributions 13to 55.0 cents per security, in line with guidance. This represents an increase of 3.8%, or 2.0 cents, over the FY22 distributions of 1453.0 cents per security.15Key financial data for FY231630 June 2023 17$m1830 June 2022 19$m20Changes21$m %122Statutory Revenue23Total revenue 2,913 2,732 181 6.6%24Pass-through revenue2 512 496 16 3.2%25Total revenue excluding pass-through 2,401 2,236 165 7.4%26Underlying EBITDA3 1,725 1,692 33 2.0%27 Fair value gains/(losses) on contract for difference 12 (30) 42 140.0%28 Technology transformation projects (67) (22) (45) (204.5%)29 Wallumbilla Gas Pipeline hedge accounting discontinuation (37) (15) (22) (146.7%)30 Basslink debt revaluation, interest and integration costs 47 12 35 291.7%31 Basslink AEMC market compensation 15 – 15 –32Payroll review (9) (7) (2) (28.6%)33Total reported EBITDA 1,686 1,630 56 3.4%34Depreciation and amortisation expenses (750) (735) (15) (2.0%)35Total reported EBIT 936 895 41 4.6%36Net finance costs and interest income (459) (483) 24 5.0%37Significant items38 Reversal of impairment of property, plant and equipment – 28 (28) (100.0%)39Profit before income tax 477 440 37 8.4%40Income tax expense (190) (180) (10) (5.6%)41Statutory profit after tax including significant items 287 260 27 10.4%42Profit after tax excluding significant items 287 240 47 19.6%43Free cash flow4 1,070 1,081 (10) (1.0%)44Free cash flow per security (cents) 90.7 91.6 (0.9) (1.0%)45Earnings per security including significant items (cents) 24.3 22.1 2.2 10.0%46Earnings per security excluding significant items (cents) 24.3 20.4 3.9 19.1%47Distribution per security (cents) 55.0 53.0 2.0 3.8%48Distribution payout ratio (%) 5 60.6 57.9 2.7 4.7%49Weighted average number of securities (millions) 1,180 1,180 – –501 Positive/negative changes are shown relative to impact on profit or other relevant performance metric.512 Pass-through revenue is offset by pass-through expense within EBITDA. Any management fee earned for the provision of these services is recognised 52as part of asset management revenues.533 Underlying earnings before interest, tax, depreciation, and amortisation ("EBITDA") excludes recurring items arising from other activities, transactions 54that are not directly attributable to the performance of APA Group's business operations and significant items.554 Free cash flow is Operating cash flow adjusted for strategically significant transformation projects, less stay-in-business (SIB) capex. SIB capex 56includes operational assets lifecycle replacement costs and technology lifecycle costs.575 Distribution payout ratio = total distribution applicable to the financial year as a percentage of free cash flow. 585059APA GROUP   ANNUAL REPORT 2023