Securing
Australia’s
energy
future
Annual Report 2024
Acknowledgement of Country
At APA, we acknowledge the Traditional Owners and Custodians
of the lands on which we live and work throughout Australia.
We acknowledge their connections to land, sea and community.
We pay our respects to their Elders past and present, and commit
to ensuring APA operates in a fair and ethical manner that
respects First Nations Peoples’ rights and interests.
Cover image: Port Hedland Solar Farm (under construction), WA
Image opposite: Basslink Interconnector, VIC
About this report: The 2024 Annual Report is our primary report to
securityholders, providing a consolidated summary of APA Group’s
performance for the financial year that ended on 30 June 2024. It should
be read in conjunction with the reports that comprise the 2024 Annual
Reporting Suite including: Annual Report, Sustainability Data Book, Results
Presentation available from https://www.apa.com.au/investors, as well
as the Climate Report and Climate Data Book that will be available at this
website in September 2024. In this report, unless otherwise stated, references
to ‘APA Group’, ‘we’, ‘us’ and ‘our’ refer to APA comprising the ASX-listed entity
and the APA Infrastructure Trust and the APA Investment Trust. Any reference
in this report to a ‘year’ relates to the financial year ended 30 June 2024
(FY24). All dollar figures are expressed in Australian dollars unless otherwise
stated. The Board acknowledges its responsibility for the 2024 Annual Report
and has been directly involved in its development and direction. The Board
reviewed, considered and provided feedback during the production process
and approved the Annual Report at its August 2024 Board meeting. This
report outlines APA Group’s activities – governed by our purpose, behaviours
and strategy – delivering the financial, non-financial and sustainability
performance required to capture opportunities while managing risks. APA
Group comprises two registered investment schemes, APA Infrastructure
Trust (ARSN 091 678 778) and APA Investment Trust (ARSN 115 585 441), the
securities of which are stapled together. APA Group Limited (ACN 091 344 704)
is the responsible entity of APA Infrastructure Trust and APA Investment Trust.
Disclaimer: Please note that APA Group Limited is not licensed to
provide financial product or investment advice in relation to securities
in APA Group. This publication does not constitute financial product advice
and has been prepared without taking into account your objectives,
financial situation or particular needs. Before relying on any statements
contained in this publication, including forecasts and projections,
you should consider the appropriateness of the information, having
regard to your own objectives, financial situation and needs, and seek
professional advice if necessary. Past performance information should
not be relied upon as (and is not) an indication of future performance.
Directors’ Report and Operating and Financial Review (OFR): The required
elements of the Directors’ Report including the OFR, are featured on pages
10 to 73 and pages 74 to 180 (in respect of APA Infrastructure Trust) and
pages 181 to 206 (in respect of APA Investment Trust) of this report and include
the sections ‘Overview and highlights’, ‘About APA’, ‘Our strategy’, ‘Risks and
opportunities’, ‘Performance’, ‘Outlook’, ‘Governance’, ‘Directors’ Report’
(in respect of each of APA Infrastructure Trust and APA Investment Trust) and
‘Remuneration Report’ (in respect of each of APA Infrastructure Trust and
APA Investment Trust). The OFR is covered specifically on pages 10 to 64.
An integrated approach: APA Group is committed to providing
securityholders, other external stakeholders and our people with timely,
consistent and transparent corporate reporting. We are moving towards
integrated reporting over a multi-year period to create trusting and
transparent relationships with all stakeholders and to provide a more
complete picture of how we create and preserve long-term value.
We are currently in the second year of our integrated reporting journey,
focusing on the development of the six value drivers (or ‘capitals’).
FY25 will focus on the development of a value-creation model. The
integrated reporting concept refers to a principles-based, multi-capital
framework in which companies can communicate clearly and concisely
about how their strategies, governance, performance, prospects and
sustainability-related actions create value in the context of their external
environment. Our 2024 Annual Report is guided by the International
Integrated Reporting Framework (IIRF) which provides a clear, concise and
comparable format for integrated reporting across strategy, governance,
performance and targets, and by the Global Reporting Initiative (GRI)
which establishes standardised sustainability impact reporting across
industries and sectors. This report is also informed by recommendations
from the Task Force on Climate-related Financial Disclosures (TCFD),
Sustainability Accounting Standards Boards (SASB) and the United
Nations Sustainability Development Goals (UN SDGs).
Forward-looking information: This publication contains forward-looking
information, including about APA Group, its financial results and other
matters which are subject to risk factors. ‘Forward-looking statements’
may include indications of, and guidance on, future earnings and
financial position and performance, statements regarding APA Group’s
future strategies and value drivers expenditure, statements regarding
estimates of future demand and consumption and statements regarding
APA’s sustainability and climate transition plans and strategies, the
impact of climate change and other sustainability issues for APA, energy
transition scenarios, actions of third parties, and external enablers such as
technology development and commercialisation, policy support, market
support and energy and offsets availability. Forward-looking statements
can generally be identified by the use of forward-looking words such
as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘could’, ‘may’, ‘predict’, ‘plan’,
‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’, ‘outlook’, ‘guidance’,
‘goal’, ‘ambition’ and other similar expressions and include, but are not
limited to, forecast EBIT and EBITDA, free cash flow, operating cash flow,
distribution guidance and estimated asset life. At the date of this report,
APA Group believes there are reasonable grounds for these forward-
looking statements and we have used due care and attention in preparing
this report. Forward-looking statements, opinions and estimates are not
guarantees or predictions of future performance and involve known and
unknown risks and uncertainties and other factors. Many of these are
beyond our control and may involve significant elements of subjective
judgement and assumptions about future events, which may or may
not be correct. There can be no assurance that actual outcomes will not
materially differ from these forward-looking statements, opinions and
estimates. A number of important factors could cause actual results or
performance to differ materially from such forward-looking statements,
opinions and estimates. These factors include, but are not limited to,
general economic conditions; exchange rates; technological changes;
the geopolitical environment; the extent, nature and location of physical
impacts of climate change; changes associated with the energy market
transition; and government and regulatory intervention, including to
limit the impacts of climate change or manage the impact of Australia’s
transitioning energy system. A number of these factors are described in
the section titled ‘Risks and Opportunities’ beginning on page 58. Readers
should review and have regard to these risks when considering the
information in this report and are cautioned not to place undue reliance
on forward-looking statements, particularly in light of the long-time
horizon which this report discusses. There are also limitations with respect
to climate scenario analysis and it is difficult to predict which, if any, of
the scenarios might eventuate. Scenario analysis is not an indication of
probable outcomes and relies on assumptions that may or may not prove
to be correct or eventuate. Scenarios may also be impacted by additional
factors to the assumptions disclosed. Investors should form their own
views in relation to these matters and any assumptions on which any
forward-looking statements, estimates or opinions are based. Except as
required by applicable laws or regulations, we do not undertake to publicly
update or revise any
forward-looking statements to reflect any change in expectations,
contingencies or assumptions, whether as a result of new information
or future events. To the maximum extent permitted by law, APA and
its officers do not accept any liability for any loss arising from the use
of the information contained in this report.
Non-IFRS financial measures: APA Group results are reported in line
with International Financial Reporting Standards (IFRS). However,
investors should be aware that this report includes certain financial
measures that are non-IFRS financial measures for the purposes of
providing a more comprehensive understanding of the performance
of the APA Group. These non-IFRS financial measures include FCF, EBIT,
EBITDA and other ‘normalised’ measures. Such non-IFRS information
is unaudited, however the numbers can be reconciled to the statutory
audited financial statements.
APA GROUP
ANNUAL REPORT 2024
About this report
IFC
Disclaimer
IFC
Overview and highlights
2
About APA
10
Our strategy
16
Performance
26
External environment
56
Risks and opportunities
58
Outlook
64
Governance
66
APA Infrastructure Trust Financial Report
74
APA Investment Trust Financial Report
181
Additional information
207
Five-year financial summary
208
Investor information
209
Glossary
210
Reporting
suite map
Securing
Australia’s
energy
future
Annual Report 2024
Securing
Australia’s
energy
future
Corporate Governance
Statement 2024
Securing
Australia’s
energy
future
Investor presentation
Securing
Australia’s
energy
future
Climate Report 2024
Securing
Australia’s
energy
future
Modern Slavery Report
Securing
Australia’s
energy
future
SustainabilityData Book
Key information
Annual Report
Corporate
Governance
Statement
Investor
Presentation
Climate Report
Modern Slavery
Statement
Sustainability
Data Book
Strategy
•
•
Financial
performance
•
•
Operational
performance
•
•
•
•
•
Governance
•
•
Risk
•
•
•
•
Customers
and partners
•
People and
communities
•
•
•
•
Environment
•
•
•
Securityholder
information
•
•
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
1
APA GROUP
ANNUAL REPORT 2024
FY24 was another year of solid financial and
operational performance for APA.
Over the past 12 months we have achieved revenue,
earnings and distribution growth, delivered new
infrastructure to meet our customers’ energy needs
and completed the acquisition and integration of
the Pilbara Energy System business, providing a
significant platform for long-term growth.
We have strong momentum with the delivery of
our customer-focused strategy to be the partner of
choice for energy infrastructure solutions, supported
by our three delivery pillars – Our People, Operational
Excellence and Creating Value.
In FY24, we further refined our focus into markets
where we have a competitive advantage –
contracted power generation, electricity transmission,
gas transportation and future energy – and continued
to progress the strategic priorities that will underpin
long-term value creation.
This year we also reviewed APA’s purpose, brand
and culture to continue strengthening trust with
our people, customers and stakeholders.
Our purpose, Securing Australia’s energy future,
defines the unique role APA plays as an energy
infrastructure partner, highlighting the trust our
customers and communities have in our ability
to work with them to deliver reliable, affordable
and lower emissions energy.
Financial performance
Our financial performance in FY24 was solid.
Total statutory revenue (excluding pass-through
revenue) was $2,591 million, up 7.9%, driven by a
solid Energy Infrastructure performance, a full-
year contribution from Basslink and an initial
contribution from our new Pilbara Energy System
(Pilbara) business, which is performing in line
with our acquisition business case.
Statutory profit for FY24 was $998 million. This was
driven by the remeasurement of APA Group’s pre-
existing 88.2% interest in the Goldfields Gas Pipeline
as we moved to full ownership of this asset as part
of the Pilbara business acquisition. This more than
offset the non-cash $144 million (pre-tax) impairment
of the Moomba Sydney Ethane Pipeline (MSEP) which
was recognised due to our single-user customer
ceasing operations.
Underlying earnings before interest, tax, depreciation
and amortisation (EBITDA) of $1,893 million represented
a 9.7% increase on the previous year. On a reported
EBITDA basis, earnings were up 3.0% to $1.736 million.
Securing Australia’s
energy future
Our performance enabled the Board to declare a final
distribution of 29.5 cents, taking the FY24 distribution
to 56.0 cents per security, in line with guidance. This
represents an increase of 1.8% on FY23 and has been
delivered in parallel with ongoing investment in new
infrastructure to maintain safe and reliable operations
and to pursue the significant growth platforms in place.
Our people
In FY24, we continued to focus on improving safety
performance and building the skills and culture
required to execute our strategy.
We reported zero fatalities and our Total Recordable
Injury Frequency Rate (TRIFR) improved in FY24, with
a 35% decrease on FY23.
However, we recorded two serious-harm injuries
as well as 35 potential serious-harm incidents
compared to 33 in the previous year.
In wellbeing, we undertook a psychosocial risk
review and commenced the implementation
of a Psychosocial Risk Protocol which we will
embed over the coming year.
Employee engagement improved in FY24, with our
annual Culture and Engagement Survey showing
an improved engagement score of 72%, up from
71% in FY23. This is a pleasing result and, alongside
our purpose, in FY25 we will launch a new culture
statement that defines how our people work together
to support our success.
We have continued to invest in our diverse and skilled
employees. Representation of women across our
total workforce increased from 31.8% to 32.4% and in
senior leadership roles from 31.4% to 39.2%.
Improving diversity in our early careers area
remains a focus as we continue to take action
to build a pipeline of talent for future leadership.
This has helped us achieve 63% representation of
women in both our 2024 Graduate Program and
Internship Program. Our 2024 Apprenticeship Program
reached 44% women, which is an increase from
the 19% achieved in 2022.
We also launched new technology platforms,
including the Workday enterprise resource
planning system, which was delivered on-time
and on-budget, to improve the workplace
experience of all employees, streamline processes
and generate productivity improvements.
Operational excellence
Delivering operational excellence goes to the heart
of our social licence and underpins our ongoing
financial results.
2
ANNUAL REPORT 2024
APA GROUP
MESSAGE FROM THE CHAIRMAN AND MANAGING DIRECTOR
In FY24, we continued to implement our Environment
Improvement Program to improve waste, soil and
water management practices. We also commenced
delivery of our inaugural Reflect Reconciliation Action
Plan, completing 36 of our 72 commitments.
In process safety, we recorded 14 Tier 1 incidents,
highlighting the need to ensure we are always
vigilant in the operation and maintenance of our
assets. This outcome was driven largely by our
Networks business as a result of strikes to gas
distribution assets by third parties.
Creating value
In FY24, we continued the execution of our customer-
focused growth strategy. Central to this was the
acquisition and successful integration of our new
Pilbara business, which was announced in August
2023 and completed in November 2023.
The acquisition, supported by a $675 million institutional
placement and a $200 million Security Purchase
Plan, has created a significant new growth platform
for APA to deliver contracted power generation and
electricity transmission infrastructure to customers
in the resources sector.
The acquisition leverages our existing skills in
operating a diverse range of energy infrastructure,
including large-scale renewables, gas and electricity
transmission assets. It gives APA the scale and
capability to be the leading provider of bundled
energy infrastructure solutions for the remote regions
of Australia.
Over the past eight months we have completed the
integration of the Pilbara team and assets, and have
progressed key projects, including the Port Hedland
Solar and Battery Project. Over the long term, we
will continue to build on existing momentum with
strategic sites and approvals to capture value from
a $3 billion renewables-focused growth pipeline.
Continuing our progress on sustainability
Sustainability is key to our purpose of Securing
Australia’s energy future. We believe working together
with our people, First Nations groups, communities
and customers is key to delivering sustainable,
long-term value for securityholders.
We closed out the commitments in our FY21–24
Sustainability Roadmap over the course of the year.
This included the release of our first Climate Report,
demonstrating solid progress towards the delivery
of our Climate Transition Plan 2030 interim targets
and goals, and the launch of our inaugural Reflect
Reconciliation Action Plan.
This year we have also taken the next step to
bring our financial and non-financial sustainability
reporting together in our Annual Report, with the
launch of our first integrated report.
Michael Fraser
Chairman
Adam Watson
Chief Executive Officer
and Managing Director
Moving forward, the APA Board has endorsed a
refreshed Sustainability Roadmap (FY25–FY27),
with focus areas aligned to our three delivery pillars.
This Roadmap will further embed sustainability
across APA.
Delivering for securityholders
APA has a robust capital management framework
in place that drives discipline in the prioritisation of
value accretive initiatives and the allocation of free
cash flow.
We will continue to make these decisions, balancing
the need to maintain our existing investment grade
credit ratings and to deliver sustainable distributions
to securityholders. In FY24, we were pleased to again
deliver distribution growth, our 20th consecutive year
of increased distributions for our investors.
Looking ahead
In FY25 we will continue to progress our customer-
focused strategy and the significant value accretive
growth opportunities in front of us.
The public debate has shifted and the role of gas in
Australia’s energy transition is now widely accepted.
The Federal Government’s Future Gas Strategy has
made it clear that gas has a key role to play and
that new sources of gas supply are needed to meet
demand during the economy-wide transition. We will
continue to advocate for the right settings to support
strategy execution, while taking proactive steps to
manage our regulatory environment and deliver
operational efficiencies to capture value for our
securityholders.
On behalf of the Board and leadership team, we
would like to welcome the Pilbara team and thank all
our employees for their contribution to the success
of APA, along with our customers, communities
and other stakeholders for their continuing positive
engagement.
We look forward to updating you again soon.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
3
APA GROUP
ANNUAL REPORT 2024
FY24 summary
Financial highlights
to $2,582m
SEGMENT REVENUE1
+9.7%
to 56.0cps
1.8%
FY24 DPS4
to $1,073m
+0.3%
FREE CASH FLOW (FCF)3
1
Segment Revenue excluding pass-through. Pass-through revenue is offset by pass-through expenses within EBITDA. Any management fee earned
for the provision of these services is recognised within total revenue. Reported increase is against FY23. Refer to the Financials section of the
Operating Financial Review on pages 48–55 for further detail.
2 Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) excludes recurring items arising from other activities, transactions
that are not directly attributable to the performance of APA Group’s business operations and significant items. Reported increase is against FY23.
Refer to the Financials section of the Operating Financial Review on pages 48–55 for further detail.
3 Free cash flow is Operating Cash Flow adjusted for strategically significant transformation projects, acquisition and integration costs and capital
returns from Joint Ventures less stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and technology
lifecycle costs. Refer to the Financials section of the Operating Financial Review on pages 48–55 for further detail.
4 DPS = Distribution per security.
5 Includes Pilbara Energy System acquisition.
Image: Mondarra Gas Storage and Processing Facility, WA
to $1,893m
UNDERLYING EBITDA2
+9.7%
4
APA GROUP
ANNUAL REPORT 2024
$2.7bn
CAPITAL INVESTMENT5
$3.0bn
CAPITAL RAISED
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
5
APA GROUP
ANNUAL REPORT 2024
Engaged
employees
Improved employee engagement
score in FY24 of 72%, reflecting our
people’s confidence in APA’s future.
Customer
focused
Our East Coast Grid expansion
provided vital capacity for customers
to manage demand peaks.
Strong safety
performance
TRIFR is 2.2 recordable injuries
per million hours worked,
down 35% from FY23.
Sustainability
progress
Launched our Reflect Reconciliation
Plan and progressed our Climate
Transition Plan.
FY24 summary
Non-financial highlights
Image: Emu Downs Wind Farm, WA
6
APA GROUP
ANNUAL REPORT 2024
Strong progress
on growth pipeline
Significant opportunities in the
Pilbara and progress with Beetaloo,
Kurri-Kurri and Brigaloo projects.
Successful
integrations
Pilbara Energy System and
Basslink assets integrated in FY24.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
7
APA GROUP
ANNUAL REPORT 2024
30 June 2024
$m
30 June 2023
$m
Change
%2
Revenue
3,064
2,913
5.2%
Total revenue excluding pass-through3
2,591
2,401
7.9%
Segment revenue excluding pass-through4
2,582
2,353
9.7%
Underlying EBITDA5
1,893
1,725
9.7%
Total reported EBITDA6
1,736
1,686
3.0%
Statutory profit after tax including significant items
998
287
247.7%
Profit after tax excluding significant items
119
287
(58.5)%
Free cash flow7
1,073
1,070
0.3%
Financial position
Total assets
19,563
15,866
23.3%
Total drawn debt
12,893
11,240
14.7%
Total equity
3,248
1,910
70.1%
Financial ratios
Free cash flow per security (cents)
83.6
90.7
(7.8)%
Earnings per security (cents) including significant items8
78.9
24.3
224.7%
Earnings per security (cents) excluding significant items8
9.4
24.3
(61.3)%
Distribution per security (cents)
56.0
55.0
1.8%
Distribution payout ratio (%)9
67.0
60.6
10.6%
FFO/Net Debt (%)10
10.3
11.0
(6.4)%
FFO/Interest (times)10
3.2
3.4
(5.9)%
1
Refer to the Financials section of the OFR (pages 48–55).
2 Positive/negative changes are shown relative to impact on profit or other relevant performance metric.
3 Statutory revenue excluding pass-through. Pass-through revenue is offset by pass-through expenses within EBITDA. Any management fee earned
for the provision of these services is recognised within total revenue.
4 Segment revenue excludes: pass-through revenue; Wallumbilla Gas Pipeline hedge accounting unwind; income on Basslink debt investment;
Basslink AEMC market compensation and other interest income.
5 Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) excludes recurring items arising from other activities,
transactions that are not directly attributable to the performance of APA Group’s business operations and significant items.
6 Earnings before interest, tax, depreciation and amortisation (EBITDA) including non-operating items and excluding significant items.
7 Free cash flow is Operating Cash Flow adjusted for strategically significant transformation projects, acquisition & integration costs and capital
returns from Joint Ventures less stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and technology
lifecycle costs.
8 Earnings per security is calculated using the weighted average number of securities on issue of 1,265 million (FY23: 1,180 million).
9 Distribution payout ratio = total distribution applicable to the financial year as a percentage of free cash flow.
10 FFO/Net debt and FFO/Interest calculated in line with S&P methodology. Historical ratios have been revised reflecting S&P revisions to the
historical figures.
Financial results summary
The below table is provides a summary of the results for FY24. Further details are provided in subsequent
sections to explain financial movements.1
8
ANNUAL REPORT 2024
APA GROUP
FY24 SUMMARY (CONTINUED)
Image: Mondarra Gas and Storage Facility, WA
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
9
APA GROUP
ANNUAL REPORT 2024
About APA
At APA, we’re taking on one of Australia’s
greatest challenges: the energy transition.
We’re not doing it alone. We’re doing it as
Australia’s energy infrastructure partner –
a role our unique experience and expertise
positions us to play.
Image: Port Hedland Solar Farm (under construction), WA
10
APA GROUP
ANNUAL REPORT 2024
Securing Australia’s
energy future
PURPOSE
Why we exist
To be the partner of
choice in delivering
infrastructure solutions
for the energy transition
STRATEGY
What we do
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
11
APA GROUP
ANNUAL REPORT 2024
ACCOUNTABLE
We spend time
on what matters,
we do what we
say and deliver
world-class
solutions.
IMPACTFUL
We create
positive legacies
and work
safely, for our
customers,
communities, our
people and the
environment.
COLLABORATIVE
We are inclusive,
work together
and respect
and listen to our
stakeholders.
NIMBLE
We are curious,
adaptive and
future focused.
COURAGEOUS
We are honest
and transparent,
we learn from
our mistakes and
we challenge the
status quo.
Our behaviours
Our behaviours align to our Code of Conduct
and guide our everyday interactions, decisions
and ways of working. By embracing and upholding
these five behaviours, we create a culture that
empowers us to be our best – for each other,
our customers and the communities we serve.
As Australia’s energy infrastructure
partner, we work across a diverse range of
energy solutions, transporting almost half
of the nation’s domestic gas supply and
managing a large and growing portfolio of
renewables, firming generation and electricity
transmission infrastructure assets.
And we’re exploring the fuels of the future
as we look towards what’s next.
As part of communities across the country,
including many our people call home,
we’re often unseen, connecting industry,
manufacturing and households to the energy
they need to keep our nation moving forward.
To do this, we’ve assembled a team of experts
who are innovative, customer focused and
pragmatic. We support our people with a
culture that’s positive about change and
fosters high performance.
And our commitment to a safe and respectful
workplace means our people can get on with the job,
knowing they’re valued and that their safety always
comes first.
Our scale lets us see the big picture. Our customers’
needs drive our ingenuity. And our proven capability
of generating and transporting gas and electricity to
every corner of Australia makes us a one-stop-shop
for our customers. We make each other stronger.
As Australia’s energy infrastructure partner of
choice, we’re building a safer, more sustainable
tomorrow, delivering value through our critical
role in the transition and beyond. It’ll be the
defining achievement of our generation.
Together, with our people, customers, communities
and other stakeholders, we’re securing Australia’s
energy future.
About APA
12
ANNUAL REPORT 2024
APA GROUP
ABOUT APA (CONTINUED)
Gas Processing and Storage
27
Dandenong
18
Kogan North
46
Mondarra
Gas Distribution
16 Allgas Gas Network
50 Australian Gas Networks
24 Tamworth Gas Network
Electricity Transmission
19 Directlink
31 Murraylink
53 Basslink
57 Pilbara – HV Transmission Lines
Generation
17
Daandine (30 MW)
6
Diamantina (242 MW)
33
Gruyere (47 MW)
7
Leichhardt (60 MW)
5
Thomson (22 MW)
4
X41 (41 MW)
54
Newman (232 MW)
58
Port Hedland (126 MW)
61
Boodarie (84 MW)
35
Gruyere Battery Station (4.4 MW/4.4 MWh)
55
Newman Battery (35 MW / 11.4 MWh)
59
Port Hedland Battery* (35 MW / 34.1 MWh)
*
Under construction.
Solar Farm
43
Badgingarra (19 MW)
11
Darling Downs (108 MW)
41
Emu Downs (20 MW)
34
Gruyere (13.2 MW)
8
Dugald River (88 MW)
56
Chichester (60 MW)
60
Port Hedland* (47 MW)
Wind
44
Badgingarra (130 MW)
42
Emu Downs (80 MW)
32
North Brown Hill (132 MW)
Key
APA Group asset
APA Group distribution network asset
APA Group investment
Investment distribution network
Electricity transmission
APA Group managed asset (not owned)
Managed distribution network
Other natural gas pipelines
Under construction
Wind farm
Solar farm
LNG plant
Battery storage
Gas storage facility
Gas processing plant
Gas power station
Integrated Operations Centre
Pipeline
3
Amadeus Gas Pipeline (inc laterals)
13 Berwyndale Wallumbilla Pipeline
1
Bonaparte Gas Pipeline
9
Carpentaria Gas Pipeline (inc laterals)
22 Central Ranges Pipelines
23 Central West Pipeline
37 Eastern Goldfields Pipeline
47 Goldfields Gas Pipeline (GGP)
38 Kalgoorlie Kambalda Pipeline
40 Mid West Pipeline
20 Moomba Sydney Pipeline (inc laterals) (MSP)
21 Moomba Sydney Ethane Pipeline
28 Mortlake Gas Pipeline
39 Northern Goldfields Interconnect
45 Parmelia Gas Pipeline (PGP)
48 Pilbara Pipeline System
12 Reedy Creek Wallumbilla Pipeline
15 Roma Brisbane Pipeline (inc Peat lateral)
30 SEA Gas Pipeline
29 SESA Pipeline
10 South West Queensland Pipeline (SWQP)
49 Telfer/Nifty Gas Pipelines and lateral
25 Victorian Transmission System (VTS)
14 Wallumbilla Gladstone Pipeline (inc laterals)
2
Wickham Point Pipeline
36 Yamarna Gas Pipeline
51 Kurri Kurri Lateral Pipeline (KKLP)*
52 Western Outer Ring Main (WORM)
45
42
41
44
43
40
39
38
37
35 34
55
54
47
56
57
58
61
59
48
49
60
4
5
7
9
10
11
20
21
12
14
15
16
18
24
51
19
22
23
25
27
53
17
13
32
31
30
29
28
6
8
33
50
3
Perth
Kalgoorlie
Tropicana
Gruyere
Karratha
Newman
Port Hedland
Katherine
Yarmana
Alice Springs
Moomba
Ballera
Mount Isa
Gladstone
10C
Roma
Wallumbilla
Tamworth
Dubbo
Kurri Kurri
Lithgow
Griffith
Albury
Bendigo
Ballarat
Adelaide
Melbourne
Hobart
Canberra
Sydney
Brisbane
Darwin
46
2
1
52
APA portfolio of assets and investments
OVERVIEW
OPERATING AND
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APA GROUP
ANNUAL REPORT 2024
How we create value
We create value for our securityholders and other stakeholders through the delivery of our strategy and
our purpose of securing Australia’s energy future. Our strategy is underpinned by effective governance and
sustainability management. We consider value through six value drivers and outcomes.
In FY24, APA progressed its alignment with the Integrated Reporting Framework, developing our six value drivers
through extensive stakeholder engagement across the business. We are moving towards integrated reporting
with a full value creation model being pursued in FY25.
Our
operating
environment
How we operate
APA purpose
Securing Australia’s energy future
page 11
Our strategy
To be the partner of choice in
delivering infrastructure solutions for
the energy solution
pages 16–18
Shaped by
External environment
pages 56–57
PEOPLE
Our commitment to a safe,
respectful and inclusive
workplace, with high-
performing, capable and
engaged people.
• Prioritising our people’s
safety, health and
wellbeing.
• Promoting a customer-
focused, high-
performing, inclusive,
diverse and equitable
environment.
• Attracting, developing
and retaining talent,
skills and capabilities.
• Fostering specialist
capability and
experience in disciplines
critical to the energy
transition.
Our value
drivers
Summary
and
outcomes
INFRASTRUCTURE AND
BUSINESS INTELLIGENCE
Our commitment to
responsibly invest,
build, own and operate
assets, leveraging our
organisational know-how
to enable safe delivery
of energy.
• Safe and compliant
operation of assets.
• Reliable and optimised
delivery of energy for
our customers.
• Disciplined asset
investment.
• Disciplined risk
management.
• Delivering operational
excellence for
our customers.
• Enhancing our business
activities through
processes, knowledge,
insights, systems
and data.
• Building the
operational capability.
OUR CUSTOMERS
AND PARTNERS
Our respectful and
mutually beneficial
relationships with our
customers and partners
(including government
and suppliers) to enhance
our business operations
and drive long-term,
sustainable outcomes.
• Effective and trusted
relationships with
customers.
• Strong partnership with
all levels of government
to support the energy
transition.
• Implement and deliver
against our Responsible
Procurement Strategy.
14
ANNUAL REPORT 2024
APA GROUP
ABOUT APA (CONTINUED)
Our governance
pages 66–73
Our sustainability approach
pages 19–25
Risks and opportunities
pages 58–63
ENVIRONMENT
Our management of the
environment to ensure we
develop and operate our assets
in a sustainably-responsible way.
• Developing and delivering of
APA’s Sustainability Roadmap.
• Developing and delivering of
APA’s Climate Transition Plan.
• Developing and delivering of
a plan to improve biodiversity
performance and align with
TNFD, including an uplift of
existing processes.
• Implementing and delivering
against the Environment
Improvement Program.
SOCIAL LICENCE
Our management of heritage
and social performance
including relationships with
First Nations Peoples and
communities, to ensure we
develop and operate our assets
in a sustainably responsible way.
• Strengthening trust with
key stakeholders including
the community and
First Nations Peoples.
• Improving social licence
through delivery of our
Community and Social
Performance Framework.
• Understanding and managing
modern slavery risks and build
understanding of human
rights risks.
• Maintaining trusted
relationships with landholders.
• Developing and delivering of
APA’s Reflect Reconciliation
Action Plan.
FINANCIALS
Our access to capital from debt
and equity investors and the
reinvestment of free cash flow
to enable our operations and
execute our strategy.
• Maintaining investment grade
BBB/Baa2 credit ratings.
• Executing value accretive
growth through the
prioritisation of capital
allocation initiatives which
maximise premium to risk-
adjusted weighted average
cost of capital (WACC), relative
to securityholders alternatives.
• Delivering sustainable
distributions to securityholders.
• Reintroduction of the
Distribution Reinvestment Plan.
OVERVIEW
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15
APA GROUP
ANNUAL REPORT 2024
Our strategy
To be the partner of choice in
delivering infrastructure solutions
for Australia’s energy transition
APA’s strategy is
At APA we focus on delivering reliable,
future-focused energy solutions for the
resources industry, energy supply and
wholesale markets, government, and large
commercial and industrial customers.
Image: Mondarra Gas and Storage Facility, WA
16
APA GROUP
ANNUAL REPORT 2024
Our strategy
Our approach is customer driven and our solutions
target four asset classes that are essential to
Australia’s energy transition and where we have
a competitive advantage: contracted power
generation and firming, electricity transmission,
gas transmission and storage, and future energy
(including lower emission fuels such as hydrogen
and renewable methane).
Our strategy targets both organic growth and
strategic acquisitions, such as the Pilbara
Energy System, that establish strong platforms
for further growth. Through this approach we
will transform APA’s asset base and capability
to support Australia’s energy transition and our
customers’ decarbonisation plans.
With Australia’s energy transition being core to
our business, we consider climate-related risks
and opportunities as we manage and grow our
portfolio of assets. An effective transition requires
an ambitious but pragmatic approach to delivering
reliable, affordable and lower emissions energy.
To achieve this, the transition must focus on the
retirement of coal-fired power generation and the
introduction of renewable generation, firmed with
a combination of short-duration (e.g. batteries)
and long-duration energy storage and generation
technologies (e.g. natural gas and hydro).
APA is well positioned in Australia to play a key role in
developing and deploying energy solutions that strike
a balance between often competing priorities.
Our natural gas assets are strategically integrated
in both the east and west coast gas markets. They
will remain a critical part of the future energy mix,
providing the firming capacity essential to supporting
the expansion of the renewable energy generation
required to replace retiring coal power stations.
Natural gas will continue to be important to powering
the nation’s hard-to-abate and hard-to-electrify
industrial sectors and providing essential heating
in colder climates. Our assets will help to ensure
Australian industry continues to have access to the
energy essential to their operations.
APA’s strategy is focused on four asset classes
We’re supporting
Australia’s energy
future through
investing in
Contracted power
generation
Electricity
transmission
Gas transmission
and storage
Future
energy
OVERVIEW
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APA GROUP
ANNUAL REPORT 2024
The success of our strategy execution and creating
value for our securityholders will continue to be
underpinned by understanding our customers,
anticipating their needs, partnering with them
and delivering bundled energy solutions that
they value. We create value through an attractive
pipeline of near and long term growth opportunities.
We will achieve our strategy by focusing on our three
delivery pillars: Our People, Operational Excellence
and Creating Value.
Capital allocation framework
We create securityholder value through the deployment of capital in markets where we can generate
attractive financial returns. Our capital allocation foundations are:
1 Maintain our investment grade BBB/Baa2 credit ratings.
2 Allocate capital based on maximising the premium to our risk-adjusted weighted average cost of capital
relative to alternatives.
3 Deliver sustainable distributions to securityholders.
4 Execute on value accretive growth opportunities with disciplined investment hurdles.
OUR PEOPLE
OPERATIONAL
EXCELLENCE
CREATING
VALUE
Ensuring our people are
motivated, engaged, safe
and well
Safe, reliable and efficient
operations, and maintaining
a strong social licence
Disciplined operations and
investments to maximise
value for our customers,
our communities and our
securityholders
Free cash
flow (FCF)
Investment
Return to
securityholders
Productivity improvements
Distribution target
60–70% of FCF
Organic growth
Strategic acquisitions
Other returns to
securityholders
18
ANNUAL REPORT 2024
APA GROUP
OUR STRATEGY (CONTINUED)
Our approach to sustainability
At APA, our approach to sustainability will help us
achieve long-term value creation. By working in
partnership with our people, customers, First Nations
groups, communities and investors we can help
deliver sustainable business, environmental and
social outcomes.
Our business has delivered a number of key
achievements against our FY21–24 Sustainability
Roadmap.
This includes the delivery of our inaugural Reflect
Reconciliation Action Plan, the launch of our
Responsible Procurement Strategy, improvements
in the diversity of our senior leaders, and early
careers. We have delivered against the targets,
goals and supporting actions in our inaugural
Climate Transition Plan. FY24 progress is reported
in the Performance section of this report.
In FY24, we refreshed our Sustainability Roadmap.
This refresh focused on supporting APA’s strategy to
be the partner of choice in delivering infrastructure
solutions for the energy transition and reflects the
significant role sustainability plays for our business,
customers, communities and investors.
Materiality assessment process
The refreshed Sustainability Roadmap was informed
by a double materiality assessment that considered
how APA impacts and is impacted by a range of
sustainability topics. The materiality assessment
was guided by the most recent Global Reporting
Initiative methodology (GRI 3: Material Topics 2021)
and involved the participation of an extensive
set of internal and external stakeholders, including
our securityholders, customers, community groups,
landowners and employees.
Through our materiality assessment, we identified
focus areas that form the basis of our Sustainability
Roadmap. We aligned these focus areas with our
three delivery pillars – Our People, Operational
Excellence, and Creating Value.
APA’s FY24 materiality assessment used
a GRI-aligned four-step process:
1. Desktop analysis and identification
of sustainability topics:
Reviewed APA’s internal documents, previous
list of material topics, external standards and
frameworks (GRI and SASB) to identify and analyse
a comprehensive list of sustainability topics and
their associated impacts.
2. Stakeholder identification and engagement:
Interviewed a number of our internal and
external stakeholders to understand individual
perceptions about targeted sustainability topics.
3. Prioritisation and review:
Applied a double materiality approach to assess
the sustainability topics. Topics were evaluated
and ranked and a threshold level was set defining
which topics would be considered material by the
Executive Leadership Team.
4. Validation and delivery of the materiality matrix:
Material topics were validated against the GRI
Sector Standards and a materiality matrix on
page 20 was produced capturing the positive
and negative impacts of each material topic.
This assessment is outlined below. The 10 material
topics are listed in APA’s Sustainability Roadmap
FY25–27 on pages 22–23.
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APA GROUP
ANNUAL REPORT 2024
Introducing our refreshed
Sustainability Roadmap (FY25–27)
Our refreshed Sustainability Roadmap underscores
APA’s commitment to greater transparency by
detailing our sustainability aspirations, initiatives,
and key performance indicators that all build on
our past progress. The Roadmap is supported by
a new sustainability scorecard that is underpinned
by a set of key performance indicators, and allows
us to better measure performance, track milestones
and report on progress.
The template for our Sustainability Scorecard FY25–27
is available in the FY24 Sustainability Data book.
The Sustainability Roadmap plays a pivotal role in
bringing together APA’s broad-ranging sustainability
initiatives into a comprehensive framework to focus
our efforts where we will have the most impact.
Impact materiality*
Financial materiality**
Higher
Lower
Higher
Energy
Energy
Transition
Transition
Climate Risk
Climate Risk
Local
Local
Communities
Communities
GHG Emissions
GHG Emissions
Nature &
Nature &
Biodiversity
Biodiversity
Modern Slavery &
Modern Slavery &
Responsible Value Chain
Responsible Value Chain
Work Health,
Work Health,
Safety &
Safety &
Wellbeing
Wellbeing
First Nations
First Nations
Engagement
Engagement
& Partnership
& Partnership
Employee Practices
Employee Practices
Energy Affordability
Energy Affordability
and Reliability
and Reliability
Lower
Topics of lower impact and financial materiality
Topics of high impact and financial materiality
Topics of higher impact and financial materiality
* Refers to topics that represent APA’s most significant impacts on the
economy, environment and people.
** Refers to the material topics that may impact APA’s financial prospects.
APA FY24 materiality matrix
20
ANNUAL REPORT 2024
APA GROUP
OUR STRATEGY (CONTINUED)
Image: Emu Downs Wind Farm, WA
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APA GROUP
ANNUAL REPORT 2024
APA’s Sustainability Roadmap FY25–27
Securing Australia’s energy future and supporting sustainable outcomes for our key stakeholders
and the environment
Strategic delivery pillars
Material topics
Our aspirations
OUR PEOPLE
Work health,
safety
and wellbeing
For everyone to go home healthy and safe every day.
Employee
practices
A safe, respectful and inclusive workplace, with employees that
are is high performing, capable and engaged.
Modern slavery
and responsible
value chain
To strengthen communities through impactful supplier
relationships with a responsible and resilient supply chain.
OPERATIONAL
EXCELLENCE
Nature and
biodiversity
To respect the past and protect and enhance environmental
values for the future. We are committed to managing our risks
and protecting the environment across all areas of our business.
GHG emissions
Pursue our ambition to achieve net zero operations
(Scopes 1 and 2) emissions by 2050 and deliver our Climate
Transition Plan, in support of the Paris Agreement.
Climate risk
Enhance the resilience of our asset portfolio, adapt to the physical
impacts of climate change, and support measures to ensure
communities adapt to, and benefit from, the transition to net zero.
Energy
reliability and
affordability
To work with our customers to deliver an energy transition
that prioritises reliable, affordable, and lower emissions
energy solutions.
CREATING VALUE
Energy
transition
To be a part of the successful transition to a net zero economy.
Define and enable APA’s role in Australia’s decarbonisation journey
and support reliable, affordable and lower emission energy and
industrial sectors.
Local
communities
Seek respectful and valued relationships with our stakeholders.
We work to understand and respond to feedback from our host
communities and contribute to local sustainable development.
First Nations
engagement
and partnership
Strive to cultivate cultural competency and safety within
our workforce, laying the groundwork for authentic engagement
and fostering enduring, mutually beneficial partnerships with
Traditional Owners and First Nations Peoples.
APA’s Sustainability Roadmap FY25–27 focuses on our ten material
sustainability topics
22
ANNUAL REPORT 2024
APA GROUP
OUR STRATEGY (CONTINUED)
Our initiatives
Enablers
• Prepare and deliver a process safety framework and roadmap
• Elevate the understanding and management of psychosocial risk
• Uplift controls to improve contractor management
• Deliver the HSEH Frontline Leadership Program (LEAD) nationally
• Continued delivery of our five-year HSEH Strategy
Governance
and reporting
—
Monitoring and
measurement
—
Data
completeness
and integrity
—
Change
management
—
Partnering
—
Stakeholder
engagement
• Continued delivery of our Culture and Engagement Action Plan
• Develop 2030 Inclusion & Diversity (I&D) Strategy
• Set 2030 diversity targets
• Implement inclusive hiring manager training
• Implement the Responsible Procurement Strategy
• Implement the Social Procurement Framework
• Develop/implement the Supplier Code of Conduct
• Develop an APA Human Rights policy
• Continue to build on the Taskforce on Nature-related Financial Disclosures (TNFD) gap
assessment through the development and delivery of a TNFD preparedness plan
• Develop and deliver a new biodiversity protocol, including associated processes,
tools and templates
• Deliver against the Climate Transition Plan (CTP) and associated commitments
• Deliver against phase 2 (deep-dives of prioritised APA assets) of the physical climate
risk assessment
• Progress transition risk and opportunity assessments
• Continue to provide diversified and innovative solutions that respond to existing and
future customer needs
• Continue to build, own and operate energy infrastructure, including gas transmission
and storage, to enable the delivery of reliable and affordable energy as part of the
energy transition
• Strategic investments into energy infrastructure, including renewables, firming
and electricity transmission, to support the decarbonisation of the energy system
in remote and regional parts of Australia
• Develop and implement the Value Chain Emissions Plan
• Communicate information about APA’s role in the energy transition
• Work with our customers and stakeholders in the development of a future energy
value chain through our Pathfinder Program
• Advocate for public policy positions consistent with APA’s Climate Change Policy
and Climate Transition Plan
• Define APA’s role in the just transition to support our communities and employees
• Develop and implement a Community and Social Performance Management System
• Finalise/implement APA’s social investment framework
• Deliver Reflect RAP
• Develop and deliver Innovate RAP
• Develop First Nations Policy
OVERVIEW
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APA GROUP
ANNUAL REPORT 2024
Governance and reporting frameworks
APA’s governance framework ensures that sustainability
issues and opportunities are incorporated into the
corporate agenda and business strategy. The Safety
and Sustainability Board Committee monitors APA’s
identification of sustainability opportunities and
strategies for the business and is supported by the
Executive Sustainability Management Committee.
The governance framework is detailed in the
Governance section of this report.
Our Safety and Sustainability Board Committee and
the Board oversaw the development of the FY25–27
Sustainability Roadmap including the approach and
outcome of the sustainability materiality assessment.
They will continue to have oversight of the delivery of
the new Sustainability Roadmap and its associated
metrics, which will be reported in the Sustainability
Data Book from FY25. For more information refer to
our 2024 Corporate Governance Statement.
APA applies a number of sustainability frameworks
and standards, including the GRI and Sustainability
Accounting Standard Board (SASB), in the preparation
of our sustainability disclosures. In 2023 we aligned
our climate-related disclosures with the Taskforce
on Climate-related Financial Disclosures.
Our ongoing membership of the UN Global Compact
continues to reinforce our commitment to uphold
the 10 Principles of the United Nations in the areas
of Human Rights, Labour, Environment and Anti-
Corruption, including the Sustainable Development
Goals. Our GRI Index and SASB Index are available
in the FY24 Sustainability Data Book.
Sustainability Roadmap – spotlight on climate
Our Roadmap encompasses our ambition to achieve
net zero operations (Scope 1 and Scope 2) emissions
by 2050 and deliver our Climate Transition Plan, in
support of the Paris Agreement. It further outlines
our commitment to partner with our customers,
communities, investors and governments to deliver
an energy transition that prioritises reliable, affordable
and lower emissions energy solutions.
APA’s Climate Transition Plan sets out our detailed
climate-related targets, goals and supporting actions
that will guide our actions as we pursue our strategy.
APA reports annually against its Climate Transition
Plan. The 2024 Climate Report will be released in
September 2024.
Kurri Kurri Lateral Pipeline (under construction), NSW
24
ANNUAL REPORT 2024
APA GROUP
OUR STRATEGY (CONTINUED)
1
Includes transmission, distribution, gas processing, storage and corporate.
2 The organisational boundary for all targets and goals relates to assets under APA’s operational control, as defined by the Greenhouse Gas
(GHG) Protocol. The following assets are not within APA’s operational control for emissions reporting purposes: Victorian Transmission System
(maintenance excepted), Gruyere Power Station, Wallumbilla Gladstone Pipeline, SEA Gas Pipeline and Mortlake Pipeline, North Brown Hill Wind Farm
and Australian Gas Networks.
3 Includes power generation and interconnectors.
4 In line with APA re-baselining principles, we recalculate emissions in the base year to reflect a change in the structure of the company, or to reflect
a change in the accounting methodology used. This ensures data consistency over time. Full definition in APA’s FY23 Greenhouse Gas and Energy
calculation methodology document.
5 Refers to vehicles associated with assets and operations under our operational control.
6 This means the application of our Offset Criteria when offsets are required.
Climate Transition Plan
APA’s Climate Transition Plan commitments are aligned with our business strategy.
When setting APA’s targets and goals, we made our commitments clear to stakeholders based on the
level of uncertainty in the pathway required to reach them:
Target:
An intended outcome where we have identified one
or more pathways for delivering that outcome, subject
to certain assumptions or conditions.
Goal:
An ambition to seek an outcome for which there is no
current pathway but for which efforts will be pursued
towards addressing that challenge, subject to certain
assumptions or conditions.
Key supporting actions
1
Incorporation
of the Methane
Guiding Principles
2
Hold a non-binding
securityholder vote
every three years
to align with major
updates to our Climate
Transition Plan
3
Report annually on
progress against the
targets, goals and
commitments in our
Climate Transition Plan
4
Link executive
remuneration to
climate-related
performance
from FY23
5
Scope 3 emissions
goal to be finalised
before or in conjunction
with our next Climate
Transition Plan
Goals
•
Gas infrastructure – net zero operational emissions by 20501
•
Power generation and electricity transmission infrastructure – net zero operational emissions2 by 20403
Interim targets/goals for 20304
Target:
30% emissions reduction for gas
infrastructure (FY21 base year)
Goal:
35% reduction in emissions intensity for
power generation (FY21 base year)
Target:
100% renewable electricity procurement
from FY23 onwards
Goal:
Contribute positively to grid
decarbonisation measured by MW of
enabled renewable infrastructure
Target:
30% methane reduction target
(FY21 base year)
Goal:
100% zero direct emission fleet5
Supporting
actions:
Responsible criteria6 applied
when offsets are required
Supporting
actions:
Active program to reduce emissions
we can control and apply best practice
management techniques to managing
line losses
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25
APA GROUP
ANNUAL REPORT 2024
Performance
The following sections provide a summary
of our performance in relation to APA’s six
value drivers. A full value creation model
under the Integrated Reporting Framework
will be developed in FY25.
Image: Port Hedland Solar Farm (under construction), WA
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APA GROUP
ANNUAL REPORT 2024
Integration of
Basslink and
Pilbara Energy
System
7.1/10 Customer
Experience
Score
36 RAP
commitments
delivered
Continued
progress
against the CTP
72% employee
engagement
score
BBB/Baa2
credit rating
OVERVIEW
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27
APA GROUP
ANNUAL REPORT 2024
We are committed to providing a safe, respectful
and inclusive workplace. We work to secure
Australia’s energy future ensuring our people are
motivated and engaged, and that their safety,
health and wellbeing are prioritised.
We promote an inclusive and diverse workplace,
developing the talent, skills and capabilities of
our people to ensure the customer and the safety
and the care of our people are at the centre of our
processes and systems.
Safety and care of our people
APA has over 2,7001 people across every state
and territory of Australia. We are committed to
identifying and controlling risks in the workplace so
our employees and contractors go home unharmed
both physically and mentally. APA has a Health,
Safety, Environment and Heritage (HSEH) Strategy that
includes a number of initiatives to promote visible
safety leadership and awareness of key risk areas.
In FY24, we introduced a Frontline Leadership Program
to empower our frontline leaders to manage critical
risks, revised our Fatal Risk Driving Protocol and ran
a safe driving campaign. We also implemented
learning teams for continuous improvement activities,
conducted a hand safety campaign and revised
our Incident, Near Miss and Hazard Management
Protocol.
To support the wellbeing of our people, we undertook
a psychosocial risk review and commenced the
implementation of a Psychosocial Risk Protocol,
which includes integration within the HSEH risk
register. Divisional risk assessments will be
undertaken throughout FY25 to address identified
psychosocial risks.
HSEH interactions are another way we keep safety
front-of-mind for everyone. In FY24, we focused
on increasing the number of Critical Control and
Wellbeing interactions to enhance and complement
our serious harm prevention and wellbeing initiatives.
Our leaders completed 4,900 HSEH interactions
through FY24. This is up 13% on FY23, demonstrating
a continued focus on active engagement and
meaningful conversations.
People
72% engagement in our
Culture and Engagement
Survey results, up 1% from
71% in FY23.
Our diversity improvements
have seen us listed in the
WORK180 Top 101 Employers
for Women 2024, AAGE Top
Program for Interns 2024
and Top Graduate Employers
2024 by GradConnection.
TRIFR is 2.2 recordable injuries
per million hours worked,
down 35% from FY23.
1
Portion of individuals directly employed by APA on a permanent or fixed-term arrangement and paid via APA payroll.
Include assignment arrangements of: Casual; Full-time permanent; Part-time permanent; Full-time fixed term; Part-time fixed term.
(Include Apprentice, Trainee, internationally based Employees; Exclude CEO, Board Members) - Does not include Contingent workers.
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Safety compliance
We received zero regulatory (safety) penalty
infringement notices and two regulatory (safety)
improvement notices in FY24. The two improvement
notices were issued by Workcover Victoria in relation
to the operation and maintenance of the Fire
Protection System at APA’s Dandenong Liquefied
Natural Gas (DLNG) facility, following a site inspection
in January 2024. All corrective actions have either
been completed or are on track for completion by
their respective due dates.
Measuring health, safety and performance
In FY24, our key focus areas included critical risk
management, with the revision of our Fatal Risk
Driving Protocol, and the empowerment of our
frontline leaders to manage critical risks through
the development and implementation of the LEAD
Program, which is designed to improve the skills
to lead health and safety.
The two key lag indicators for safety performance
in the period were Potential Serious Harm Incident
Frequency Rate (PSHIFR) and Total Recordable Injury
Frequency Rate (TRIFR).
In FY24, APA did not have any fatalities. However, we
recorded two serious-harm injuries and 26 potential
serious harm incidents compared to 33 in FY23.
PSHIFR for FY24 was 4.1. This is an increase of 21% from
the prior year at 3.4 as a result of improved reporting
and investigation of process safety incidents.
Our combined employee and contractor TRIFR was
2.2 Recordable Injuries per million hours worked.
This represents a decrease of 35% on the FY23 figure
of 3.4. This equates to 19 people requiring medical
intervention, down from 30 in FY23.
Serious harm prevention
The FY24 Assurance Schedule covered the areas
of risk management, job risk assessment, fatigue
management, energy isolation and electrical safety.
A total of 13 Line 2 assurance HSEH Management
System activities were undertaken. This included
auditing 957 controls, resulting in an overall
compliance rating of 96% across all assessed areas.
Assurance
We again engaged Deloitte in FY24 to undertake
limited assurance of selected key performance
indicators included in the Safety Performance
section of our FY24 Sustainability Data Book. This
was developed in accordance with the Australian
Standard on Assurance Engagements ASAE 3000,
Assurance Engagements Other than Audits or
Reviews of Historical Financial Information as issued
by the Australian Auditing and Assurance Standards
Board (ASAE 3000). Details of the assurance scope,
procedures and conclusion are included in the
Assurance Report on pages 213–215 of this report.
Diamantina Power Station, QLD
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APA GROUP
ANNUAL REPORT 2024
Gender equity
We are committed to a level playing
field by giving all women and men the
same chance to reach their potential.
•
Continued partnership with Champions of Change
Coalition and Chief Executive Women to drive a culture
of inclusion.
•
46% of employees identifying as having caring
responsibilities, up from 28% in 2023, since removing
primary and secondary carer labels.
•
Continued review of gender pay equity throughout the
year, including via formal remuneration review and
post-review and as part of the annual WGEA submission.
•
Continued to make progress on reducing the overall APA
gender pay gap while ensuring no like-for-like pay gaps.
•
Announced in WORK180’s Top 101 Employers for Women
2024 as a result of our focus on gender equity in FY24.
•
More men are taking parental leave than women since
we removed primary carer labels.
Flexibility
We encourage flexible ways of
working and empower people to
think differently about where, when
and how work is completed.
•
Scored higher on flexibility question in our Culture
and Engagement Survey than the Qualtrics Australian
and High-Performance Benchmark.
•
We completed a review of our hybrid working practices,
with feedback reinforcing our Culture and Engagement
Survey results where hybrid and flexible ways of
working are highlighted as key components of our
Employee Value Proposition (EVP).
Inclusive culture
We are committed to creating
an inclusive culture that values
all people and addresses biases
(age, cultural background, LGBTIQ,
disability, indigenous, etc.).
•
Refreshed APA’s Code of Conduct in line with
updated Respect@Work procedure and Inclusion
and Diversity Policy.
•
Cultural awareness training was delivered to our Board,
ELT and segments of the employee base, with more to
be delivered in FY25.
•
Days of significance were celebrated and recognised
throughout the organisation.
Inclusive
leadership
Inclusive leadership is about making
sure our people feel a sense of
belonging, are treated fairly and
respectfully and all our people’s voices
are heard and valued.
•
Trained our senior leaders in inclusive leadership
and prepared for our Inclusive Hiring Manager Program
in FY25.
•
Launched our employee recognition platform Applause,
with 66% employee uptake in the first three months.
Inclusion and diversity
APA’s Inclusion and Diversity Strategy (2020–2025)
is aligned to four pillars.
We have a gender diversity target of 40/40/20 for
the APA Board which may vary slightly depending
on the size and required skills mix of the Board. With
the appointment of Nino Ficca to the APA Board on
1 September 2023, and the retirement of Shirley In’t
Veld on 28 March 2024, at 30 June 2024, 33% of APA’s
non-executive Directors are women.
While we made progress in the overall representation
of women, operational and technology divisions
remain a challenge, as these have historically been
male-dominated areas.
We continue to drive focus on the representation
of women at APA with divisional targets and specific
recruitment strategies, particularly in early careers,
where we have achieved:
• 63% representation of women in both our
Graduate Program and Internship Program
for 2024.
• 44% of participants in our 2024 Apprenticeship
Program were women, an increase of 19%
since 2022.
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PEOPLE (CONTINUED)
Total employee
representation of women
Senior leadership
representation of women
Extended leadership
representation of women
32.4% in FY24
39.2% in FY24
37.7% in FY24
Up from 31.8% in FY23
Up from 31.4% in FY23
Up from 35.6% in FY23
We do not tolerate any form of discrimination or
exclusionary behaviour. In FY24, we recorded one
incident of discrimination.
For more information on our people and employment
performance, see our FY24 Sustainability Data Book.
Freedom of association and collective bargaining
We support the right of all employees to choose
whether to be a union member. In FY24, a number
of unions were party to five of APA’s six Enterprise
Agreements.
We provide industrial relations training as required
for operations leaders in Union Right of Entry and
other key Fair Work Industrial Relations principles,
such as freedom of association and unprotected
industrial action.
Development of our people
We continue our strong commitment to leadership
and talent development within our organisation.
These efforts contribute to individual growth and
also reinforce a high-performance culture at APA.
In FY24, a total 58,294 hours of training were
completed by our employees, with an average of
19 hours per team member. The focus of training
has been on leadership development, mandatory
training and compliance management. For more
technical roles, the focus has been on underground
asset locating (Networks), asset maintenance
for technicians (Operations & Maintenance) and
enhancements to the contractor competency
management system.
This detailed breakdown of training and development
initiatives highlights a strategic approach to building
the technical and leadership capabilities we need
for the future.
Leadership development
Our approach to leadership development is to
partner with external experts that deliver evidence-
based, contemporary leadership programs. We
partnered with INSEAD, world-class business school,
to deliver our Executive Leadership Program to
our Senior Leadership Teams. The priority was to
enhance their capabilities in areas such as personal
leadership, interpersonal leadership, and strategic
leadership. In FY24, we extended our leadership
development approach to our nine-month Frontline
Leadership Program where 120 frontline leaders
developed critical leadership skills with a strong
emphasis on safety leadership.
These targeted programs, both for senior and
frontline leaders, contribute significantly to a strong
leadership pipeline fostering a culture of continuous
improvement and strategic execution at APA.
Talent development
Our executive successor and emerging talent
programs ensure a robust succession pipeline
across several layers of leadership. This fosters
leadership readiness and ensures continuity in
executive leadership and overall organisational
leadership strength.
Frontline training and development
In FY24, Learning Advisory Groups (LAGs) were
established in Market Services, Engineering and
Power-Interconnectors, to complement the
existing Operations & Maintenance and Networks
LAGs. The establishment of these additional LAGs
reflects a comprehensive approach to workforce
development across various sectors within APA.
These initiatives also highlight our commitment
to leveraging technology with the introduction of
an AI-inspired software to enhance learning and
ensure that training programs are strategically
aligned with the evolving needs of the organisation.
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Ethics and integrity
Key policies governing ethics and integrity at
APA include:
• Code of Conduct: Our Code brings our purpose
and culture to life so we can make the right
choices every day. It is underpinned by our
behaviours of being courageous, accountable,
nimble, collaborative and impactful. It includes
principles and business standards that support
safety, diversity and inclusion, human rights,
community engagement, environmental
protection, and data privacy and security, and
prevent discrimination, bullying, harassment,
corruption and anti-competitive behaviour.
• Inclusion and Diversity Policy: Our commitment
and strategy to build a diverse, equitable and
truly inclusive workplace where everyone belongs,
feels valued, and respected and comfortable to
bring their authentic and best selves to work.
• Anti-Bribery and Corruption Policy: Our
commitment to fostering business integrity
including detecting and preventing bribery,
corruption and fraud.
• Whistleblower Policy: This policy creates a safe
and protected environment to escalate potential
matters of concern and suspected wrongdoing
for those working with and for APA, including our
employees, contractors, suppliers and consultants.
The Whistleblower Policy also outlines the process
and structures in place for assessing, addressing
and reporting on Whistleblower disclosures.
• Respect@Work Procedure: Our commitment
to providing and fostering an inclusive and
respectful workplace with safe, fair and positive
working conditions. APA has zero tolerance for
any form of harmful behaviour including unlawful
discrimination, bullying, harassment, sexual
harassment, sex-based harassment, vilification,
victimisation and other inappropriate behaviour.
• Health, Safety, Environment and Heritage Policy:
Our aspiration is to not only respect the past but
to also protect values for the future. We do this by
protecting the health, safety and wellbeing of our
people and the environment, heritage and the
communities in which we operate.
These policies are supported by standards that
set out performance requirements and detailed
procedures. They are periodically reviewed to ensure
they remain relevant and are made available on
APA’s website or intranet.
Reports and incidents
Our Anti-Bribery and Corruption Policy prohibits
bribery and corruption in any form. The supporting
Standard outlines roles and responsibilities and how
to raise or escalate queries or concerns.
We maintain a Whistleblower Line through an
externally managed disclosure service as an
independent, impartial and confidential means
of reporting potential incidents. Through the
Whistleblower Line and our internal reporting
channels, we identify and record material breaches
of the APA Code of Conduct and any actual or
potential incidents relating to fraud, bribery or
corruption. Awareness activities of the Whistleblower
Policy and the independent hotline continued
throughout FY24. There were six whistleblower reports,
with all reports investigated in accordance with
our policy. All reports were unsubstantiated or not
related to reportable conduct.
We recorded zero incidents of fraud, bribery or
corruption in FY24 and received no fines for non-
compliance with any laws or regulations related
to bribery or corruption.
There were five material breaches of APA’s Respect
at Work Procedure, relating to unacceptable
behaviour in FY24, including one incident found to
be discrimination and one found to be bullying.
Each incident was fully investigated, with disciplinary
outcomes applied in all matters. There were no
sexual harassment incidents. The Risk Management
Board Committee was fully informed of all incidents
and outcomes.
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PEOPLE (CONTINUED)
We responsibly develop, build, own and operate
energy infrastructure assets, leveraging our
organisational know-how to enable safe generation
and transportation of energy for our customers
and communities.
Operational excellence is critical to our social licence
and it underpins our focus on reliably delivering
energy to our customers and communities.
Delivering operational excellence for our customers
APA operates a large, $26 billion portfolio of diverse
energy infrastructure assets. This includes more
than 15,000 km of natural gas pipelines that connect
sources of supply and markets across mainland
Australia. We operate high-voltage electricity
transmission assets that connect Victoria with
South Australia, New South Wales with Queensland
and Tasmania with Victoria. We also have gas
storage facilities and operate and maintain
networks connecting 1.5 million Australian homes
and businesses to natural gas. In addition, we have
692 MW of renewable energy assets and 884 MW
of gas-fired generation assets.
Safe, reliable and efficient operation of our assets
APA has delivered a solid operational performance
in FY24, demonstrating our capability in operating
a diverse portfolio of energy infrastructure assets.
Through our continued focus on operational
excellence, across our portfolio in FY24 we delivered:
• 99.9% gas transmission nominations
• 99.6% remote generation customer availability
• 90.7% high-voltage direct current availability.
We continue to invest in our systems and processes
to make it easier for our customers to interact with us
as well as continuing to enhance our infrastructure
security, with $47 million spent to deliver the Security
and Critical Infrastructure Act 2018 requirements.
We undertake disciplined investment in our assets
to ensure they can continue to deliver the reliable
energy APA’s customers and communities expect.
Field Mobility is one of many projects underway
to empower our technicians with the tools and
processes they need to solve problems faster, work
smarter and continue to deliver exceptional results.
This year we also successfully implemented Workday,
our new enterprise resource planning system, to
improve people, procurement and finance processes.
Infrastructure and
business intelligence
Integration of Basslink and
Pilbara Energy System.
Continued operational
capability growth to
deliver bundled solutions
for our customers.
Significant investment in
technology, building next
generation technology
platforms such as Workday
and Field Mobility.
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Basslink Interconnector, VIC
CASE STUDY
Basslink’s Cable Load
Prediction System
During FY24, APA commissioned and upgraded
Basslink’s Cable Load Prediction System (CLPS).
The new CLPS was delivered as part of the
Basslink integration plan. The CLPS is a high-
tech model which takes many data inputs
to predict the thermal conditions across the
Basslink Electricity Interconnector.
The model predicts the thermal load every
five minutes to determine the safe operating
capacity of the cable. The output of the system
allows APA to determine when the Basslink
cable has been sufficiently pre-cooled to
enable the maximum capacity. This enables
Basslink to operate more effectively and
increase dynamic operational cable capacity
to assist in peak periods.
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INFRASTRUCTURE AND BUSINESS INTELLIGENCE (CONTINUED)
Process safety
In FY24, we commenced a Process Safety maturity
benchmarking exercise in line with the Energy
Institutes Process Safety Management (PSM)
Framework. This will conclude in early FY25 with
the development of a desired future state and
roadmap which will inform a refresh of our process
safety management framework improvement
activities. In addition, the following Process Safety
initiatives were delivered in FY24:
• uplift of the Enterprise Asset Management
System for the new Management of Change
workflow process
• completion of Process Hazard Analysis (PHA)
revalidation for five asset groupings (Moomba
to Sydney Ethane Pipeline, Victorian Transmission
System Central and Metro region, Moomba to
Wilton Pipeline plus laterals, and Northern Territory
Amadeus and Bonaparte Gas Systems)
• publication of APA’s Safety Critical Element (SCE)
Management Plan with the required SCE lifecycle
system improvements.
Supporting our customers to achieve their
sustainability, reliability and affordability goals
We are working closely with our customers to find
the renewable and firming energy solutions that
help them lower their energy costs and emissions
over time.
In FY24, we commissioned the Dugald River Solar
Farm (DRSF), an 88MW facility in Mount Isa,
which is the largest (by MW) off-grid solar farm
infrastructure in Australia. Working with our
customers, MMG, Mount Isa Mines and New Century,
we have integrated DRSF with Diamantina Power
Station, reducing the emissions in the North West
Minerals Province. This is an important contributor
to our Climate Transition Plan goal of net zero
electricity emissions by 2040.
Basslink Interconnector, VIC
CASE STUDY
APA’s response to
network incidents
and outages
APA’s response to the Victorian electricity
outage in February 2024 presents a
case study underlining the critical role
of gas and our energy infrastructure
assets.
Unrelated to APA’s assets, a severe
storm in Victoria brought electricity
transmission lines down and tripped
some of the state’s coal-fired power
generators. This left more than 500,000
homes in Victoria without power.
APA’s critical infrastructure enabled
more gas to be brought into the market
to enable gas power generation and
help keep the lights on for Victorians.
Throughout the event, the Basslink and
Murraylink Electricity Interconnectors were
reliably importing electricity to Victoria.
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Pilbara Energy System integration
Our network of assets across Western Australia
provides a unique capacity to work with our
customers and communities.
Our new Pilbara Energy System business, formally
owned by Alinta, was acquired in November 2023.
Since acquisition we have made strong progress
integrating the Pilbara Energy System team and
assets as well as progressing key projects already
under construction, including the Port Hedland Solar
and Battery Project.
The Pilbara Energy System has created a significant
new growth platform for APA to deliver contracted
power generation to customers in the energy-intensive
resources sector to support them to achieve their
sustainability goals.
The acquisition leverages our existing skills and
capabilities in operating large-scale renewables,
gas, battery storage and electricity transmission
infrastructure. It gives APA the scale and capability
to be one of the leading providers of bundled
energy infrastructure solutions for the remote
regions of Australia. Over the long term, we will
continue to build on existing momentum with
strategic sites and approvals to capture value
across approximately $3 billion of renewables-
focused growth opportunities.
Cyber security governance
As Australia’s energy infrastructure partner, APA
plays a pivotal role in Australia’s energy system and
as such, cyber security remains a core operational
risk. Impact from cyber security risk includes risks
to our people, assets, customers, operations and
the community.
APA employs the ‘Three Lines’ model to define
the role of different teams across the business in
managing cyber security risk. This approach sets
clear accountabilities for cyber risk management and
provides appropriate assurance. APA’s governance
arrangements and reporting captures our regulatory
and compliance requirements and its scorecard
against defined performance measures.
APA employs a number of security measures
designed to ready, protect, detect, respond and
recover from potential attacks to our most valuable
assets. APA continues to invest in our systems,
facilities and people to:
• continuously improve Cyber Crisis processes
and stakeholder readiness through Cyber Crisis
exercises for all levels of the business including
the Board
• extend threat detection systems through
situational awareness feeding into threat
detection rule enhancements
• enhance the technical security of data and
improve security monitoring of operations
• enhance identity and access management
to ensure appropriate access to information
and systems
• closely couple management of third-party
cyber security risk with broader supply chain
risk management.
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INFRASTRUCTURE AND BUSINESS INTELLIGENCE (CONTINUED)
Kurri Kurri Lateral Pipeline (under construction), NSW
CASE STUDY
East Coast Grid
expansion
Over the past several years there has
been declining gas production in southern
Australian markets.
In recent years, APA has continued to play an
important role in transporting gas from the
northern markets in Queensland to the southern
markets. APA has invested approximately
$650 million on the East Coast Grid (ECG) to
expand capacity. The expansion was done
incrementally and efficiently to minimise the
cost for customers and consumers.
Practical completion for Stage 2 of the ECG
expansion was achieved on time for winter
2024, increasing gas transportation capacity
by 13% along the South West Queensland
Pipeline (SWQP) and Moomba Sydney Pipeline
(MSP). Together with Stage 1 this has increased
the capacity of the ECG by 25% in total.
Gas was also introduced into the Western
Outer Ring Main (WORM) pipeline ahead
of winter 2024 following its completion this
year, enabling larger volumes of gas to
be transported to the Iona underground
storage facility. This is crucial to help meet
peak gas demand during winter, with gas
use sometimes three times higher in Victoria
compared to summer.
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APA GROUP
ANNUAL REPORT 2024
Our customers
and partners
Our respectful and mutually beneficial
relationships with our customers and partners
(including government and suppliers) enhance
our business operations and drive long-term,
sustainable outcomes.
We work with our customers to deliver reliable,
affordable and lower emissions energy infrastructure
solutions. We keep our customers informed about
our assets to help them better meet peak seasonal
demands and understand the impact of new
regulatory changes. We step in to assist where
we can, including in response to natural disasters.
We partner with our customers to find the energy
solutions that help them manage energy costs
and lower emissions over time.
Keeping customers at the heart of what we do
FY24 saw the energy transition continue at pace,
with decarbonisation being a key driver for many
of our customers. As customers considered new
paths to net zero, we continued to prioritise customer
engagement and communications, innovation,
and customer experience. We have put customers
at the centre of our decisions, activities and planning.
We continued to take a customer-led approach to
the development of new services, working to meet
our customers’ needs. And we have continued
to support customers facing temporary hardships.
As in previous years, APA’s customer-driven
approach included an annual feedback survey
and a Customer Action Plan in response.
Supporting our customers to decarbonise
We actively support our customers to achieve
their decarbonisation ambitions through working
with them to develop and operate integrated
solutions spanning power generation, firming,
storage, and gas and electricity transmission.
In the Pilbara Energy System, APA operates a
mix of assets (solar, battery, gas generation and
transmission) and is developing a pipeline of
projects including of 1GW+ (>$3 billion) renewables,
60MW gas generation and over 600 km electricity
transmission. This development pipeline will
support the electrification and decarbonisation
efforts of miners in the Pilbara region.
Future investments in the Pilbara Energy System
renewables-focused organic growth and
development pipelines are aligned with our
Climate Transition Plan and will also contribute
to avoided emissions within the region through
the displacement of diesel.
Our East Coast Grid
expansion provided vital
capacity for customers to
manage demand peaks.
Approximately
40 submissions from
APA to government and
regulatory processes.
Continued improvement
to our Customer
Experience Score from
6.7 to 7.1 year-on-year.
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APA GROUP
APA’s current energy infrastructure portfolio includes
over 800 km of high-voltage direct electricity
transmission including 290 km of sub-sea cable.
In line with our strategic priority to invest in electricity
transmission we have established a partnership
with EDF to connect customers and communities
to renewable energy across Australia.
Customer performance
APA’s annual commercial customer feedback survey
was completed in October 2023 and involved a
quantitative and qualitative survey administered by
an independent external agency. The key deliverable
from the survey is our Customer Experience Score
(CES), which is an average performance score across
attributes such as trust, responsiveness, value, ease,
rapport and innovation.
Our CES was 7.1 out of 10, representing an
improvement from our 2022 score of 6.7. The
result was driven by improvements in customer
relationships with our key commercial counterparts.
This reflected the success of our 2023 Customer
Action Plan, which focused on enhancing the
frequency and quality of customer interactions
over the year, as well as improving the quality of
information we provided to customers about our
company and operations, and the market.
The survey also highlighted the value of engaging
senior representatives within our customer groups
to earn and improve their trust in APA. This means
prioritising delivery on our commitments, maintaining
the reliability of our infrastructure assets, and
continuing to work on improved communications
and understanding of customers’ concerns.
Trust in APA is critical when customers choose us
as their partner of choice in delivering infrastructure
solutions for the energy transition.
The survey informed our 2024 Customer Action Plan
which has now been in progress for six months.
Customer experience
In addition to our annual survey, we regularly monitor
and manage the customer experience through:
• dedicated account managers assigned to all
commercial customers.
• a quarterly Customer Experience Dashboard
monitoring APA’s performance in key practical
measures contributing to customers’ experience
of APA.
• key account management with a monthly review
meeting to monitor customer feedback, service
delivery and performance across our key customers.
We also maintain a commercial Customer
Complaints Process with two complaints received
during FY24. This compares favourably with four
complaints in FY23.
As well as working to resolve each complaint, we
conducted ‘Lessons Learnt’ reviews to ensure any
underlying issues driving the complaint do not recur.
We hold a monthly vulnerable customer review
meeting to monitor commercial customers who
may be facing hardship or credit issues and
identify opportunities for early assistance.
We are constantly focused on providing clear and
consistent communications with our customers
about the reliability of our infrastructure assets.
In response to customer feedback, we also worked
to keep customers better informed about the ways
APA can partner with them to plan and execute
decarbonisation initiatives. This includes partnering
on exciting innovations for gas transmission and
storage, remote renewables and firming, electricity
transmission and future energy including transmission
options to support carbon capture and storage,
hydrogen and biomethane.
Partnering with our suppliers
Since launching the Responsible Procurement
Strategy in FY23, and our Reflect Reconciliation Action
Plan (RAP) in October 2023, the team has focused
on delivering the RAP obligations for procurement.
A pivotal element is the continuation of our Supply
Nation membership, which provides access to a
national database of First Nations businesses.
Initiatives include delivering supplier diversity
and unconscious bias training to cross-functional
individuals in order to increase awareness and
highlight the opportunities and benefits of engaging
with First Nations businesses, as well as supporting
engagement in regional and remote communities.
A cohort of APA employees from across the business
attended Connect 2023, Supply Nation’s flagship
annual tradeshow, which provided an invaluable
opportunity to connect directly with First Nations
businesses and entrepreneurs and get first-hand
exposure to the capability and capacity available.
We also undertook an assessment of APA’s maturity
and opportunity analysis of social procurement
and developed a draft framework to further
support our RAP and broaden supplier diversity.
Following Supply Nation’s Connect 2023, we
hosted a series of virtual meet-the-supplier events,
creating and building connections between
APA and First Nations businesses and exploring
commercial opportunities.
Following the initial scoping exercise of emissions
in the supply chain, the team continued
collaboration with the Climate Team to develop
a roadmap of initiatives, and explore data and
progress tracking options.
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ANNUAL REPORT 2024
Partnering with government and industry
to facilitate the energy transition
As part of our FY24 strategy, we partner across
state, territory and Commonwealth governments
to support the energy transition and continue to
deliver reliable, affordable and lower emissions
energy to our customers.
APA actively participates in policy processes by
making considered submissions to government,
participating in market soundings that inform
government decision making, contributing
to government and industry-led forums and
roundtables, and leading thought leadership
activities to inform better outcomes for the
energy transition.
FY24 highlights include approximately 40 submissions
to state and federal government consultations,
market soundings with state governments on the
rollout of electricity transmission infrastructure,
involvement in the Western Australian Government’s
Pilbara Roundtable and the Pilbara Advisory Council,
active membership and contribution to policy
development through membership of CEDA, ENA
and the BCA and regular articles through our new
blog, Transmission.
Political donations
In FY24, APA remained a member of the Federal
Labor Business Forum and the Liberal Party of
Australia’s Australian Business Network. These
business-focused political forums are part of
the APA stakeholder engagement program.
APA does not permit direct political donations to
any political party, representative or candidate,
in accordance with our Sponsorship and
Political Donations Policy and Anti-Bribery and
Corruption Policy.
Our expenditure on political memberships can
be viewed in the 2024 Sustainability Data Book.
Membership of associations
APA participates in business and industry associations
where there is an opportunity to provide business
leadership on national issues, insights and advocacy
to public policy processes, and contribute to the
enhancement of industry standards through the
exchange of best practice learning and development.
FY24 associations
• Australian Climate Leaders Coalition
• Australian Hydrogen Council
• Australian Pipeline and Gas Association
• Bell Bay Advanced Manufacturing Zone
• Bioenergy Australia
• Business Council of Australia (BCA)
• Council for Economic Development of Australia (CEDA)
• Chamber of Minerals and Energy of
Western Australia
• Champions of Change Coalition
• Chief Executive Women
• Clean Energy Council
• Committee for Gippsland – part-year member,
now withdrawn
• Diversity Council of Australia
• Energy Club NT
• Energy Networks Australia (ENA)
• Energy Users Association of Australia
• Future Fuels Cooperative Research Centre
• Gas Energy Australia
• Materials and Embodied Carbon Leaders’ Alliance
• Mount Isa to Townsville Economic Zone
• South Australian H2 Hub
• Tasmanian Chamber of Commerce and Industry
• Victorian Chamber of Commerce and Industry
• WORK180
FY24 signatories
• United Nations Global Compact
• Energy Charter (until December 2023)
• Methane Guiding Principles
40
ANNUAL REPORT 2024
APA GROUP
OUR CUSTOMERS AND PARTNERS (CONTINUED)
Basslink Interconnector, VIC
CASE STUDY
APA and EDF
partnership
APA and EDF (Electricité de France) have
established a strategic partnership to deliver
electricity transmission projects that support
Australia’s energy transition and future
energy needs.
We are active asset developers, owners
and operators, each with proven experience
in delivering throughout all aspects of the
transmission network development lifecycle
including design, community consultation,
procurement, construction, commissioning
and long-term maintenance and operation.
Leveraging APA’s $26 billion of energy assets
in Australia and EDF’s $580 billion of global
assets across the energy value chain, our
partnership is strategically positioned to
execute Renewable Energy Zones (REZ) and
other projects, by combining local expertise
with global experience.
We are committed to partnering with
governments to deliver infrastructure
solutions for the energy transition, supporting
our customers and communities to deliver
reliable, affordable and lower emissions
energy as Australia’s decarbonisation
continues to accelerate.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
41
APA GROUP
ANNUAL REPORT 2024
We work to protect the environment and land,
ensuring our assets are developed and operated
in a responsible way.
APA is committed to the environment through the
development and delivery of our Sustainability
Roadmap, Climate Transition Plan and Environment
Improvement Program. We are also working to uplift
our existing biodiversity performance and processes.
Environmental management
This was the third year of delivery of APA’s four-year
Environment Improvement Program, designed to
embed and improve processes across our eight
environment focus areas.
This year, we prepared and released a new Waste
Management Protocol and associated tools. This
was supported by updates to related business
systems and employee awareness programs.
We also prepared a consolidated Soil, Land and
Water Management Protocol with implementation
scheduled for Q1 FY25.
Year
Environment risk area
Status
FY22
Heritage
Completed
Pests, Diseases and Weeds
Completed
FY23
Spill Preparation and Response
Completed
Contaminated Site
Management
Completed
FY24
Waste Management
Completed
Soil, Land and Water
Management
Underway
FY25
Biodiversity
Pending
Air Quality and Amenity
Pending
Environment
Refreshed our Sustainability
Roadmap, focusing on
driving sustainable outcomes
for our people, customers
and communities.
Continued delivery against
our Climate Transition Plan.
Continued implementing our
Environment Improvement
Program with focus on waste,
soil and water management.
42
ANNUAL REPORT 2024
APA GROUP
Environment compliance
No penalty infringement notices were received
in FY24, although four regulatory warning notices
were issued:
1. A warning was received for the South West
Queensland Pipeline after reporting a non-
compliant emissions minimum velocity result.
The cause was an error with the testing process
which resulted in an incorrect measurement.
The unit was compliant when re-tested.
2. An environment Protection Order (EPO)
was received for potential land and water
contamination from an wastewater dam at the
Kogan North Facility in Queensland. APA has now
constructed a new dam and is rehabilitating
the old dam. Progress is reported in line with the
conditions of the EPO.
3. An Improvement Notice was issued for the Brooklyn
Compressor Station in Victoria following a licence
non-compliance pertaining to the absence of
a Risk Management and Monitoring Program.
The matter has been rectified and a close-out
submission provided to the EPA for consideration.
4. A Warning Letter was issued for the East Coast
Grid Expansion Project in Queensland following
the release of diesel to ground from a damaged
generator fuel filter. Corrective and preventative
actions were applied in consultation with the
regulator.
Embedding heritage management
We continued to improve heritage practices
throughout the period. In FY24 we:
• designed and prepared an Aboriginal Cultural
Heritage Learning Program for field-based
technicians. This training is intended to help
employees become more familiar with heritage
responsibilities, including identification of
common heritage types in the event of an
unexpected discovery, and will be finalised
and implemented in Q1 FY25
• delivered targeted face-to-face training to
Networks employees to uplift capability regarding
practices related to historic heritage places
• delivered regular heritage surveys on the
Moomba Wilton Pipeline in consultation with
First Nations stakeholders. A total of 457 km
was surveyed for heritage over 47 days with
12 First Nations groups involved.
We also uplifted environment and heritage data,
with improvements across three key areas:
• Weed Survey Program: We completed the
second of our three-year Weed Survey Program
to investigate the presence of invasive weeds
along more than 15,000 km of operational assets.
The outcomes of these surveys will inform long-
term monitoring and management measures
and help to quantify potential impacts on nature.
APA has partnered with Biodiversity Australia,
an Indigenous-owned company, in the delivery
of this program.
• Historic heritage and contamination hazards:
We have sourced and centralised these
whole-of-APA data sets to provide a single
source of truth for historic heritage listings
and contamination hazards.
• Waste data: We implemented a new Waste
Protocol, refining and embedding the processes
for waste data management, capture and
handover. A waste data application will facilitate
reporting from waste suppliers across operational
assets with approximately 60% of waste accounts
captured at applicable sites/locations.
Biodiversity and the Task Force for Nature-related
Financial Disclosure (TNFD)
APA recognises biodiversity and nature performance
as a significant topic as reflected in the new
Sustainability Roadmap.
In FY25 we will prepare an approved TNFD
Preparedness Plan which will start with the uplift and
rollout of revised biodiversity-related processes in line
with our Environment Improvement Program. This will
embed foundational requirements, responsibilities
and roles within the business regarding management
of fauna, flora and ecosystems.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
43
APA GROUP
ANNUAL REPORT 2024
Environment warning and penalty notices
FY19
FY20
FY21
FY22
FY24
FY23
0
1
2
3
4
5
6
7
8
9
Environmental warning notices received
Environmental penalty notices received
Climate change transition and risk
Our Climate Report 2024 will be released in
September 2024, in line with our commitment to
report annually on progress against the targets,
goals and supporting actions in our Climate
Transition Plan. Ahead of that report, some
of our key FY24 achievements are included
in the following sections.
Progress achieved for our gas infrastructure
assets included piloting enhanced methane
measurement technology and operating
compressors more efficiently.
We also delivered an assessment to electrify the
main compressor at the Wallumbilla compressor
station. Following a comprehensive technical
and commercial assessment, a final investment
decision has been delayed and we await the
outcome of the Australian Energy Regulator (AER)
regulatory review into the SWQP.
We continued to invest in building our portfolio of
renewable electricity and electricity transmission
assets this year. This included continuing the
development of the 1GW+ Pilbara Energy Systems
renewables pipeline and progressing the construction
of the Port Hedland Solar and Battery plants. We
also signed a new partnership with EDF to support
competitive bids to build the electricity transmission
lines needed to connect customers and communities
to renewable energy zones. These investments help
us progress our emissions intensity goal and support
our customers on their decarbonisation journeys.
In our Climate Transition Plan, the cost of our gas
infrastructure emissions reduction initiatives was
estimated at approximately $150 to $170 million
over the period FY23–FY30 with expected outlays
for compressor electrification, methane abatement
and the acquisition and surrender of offsets and
large-scale generation certificates.
Following the comprehensive assessment for the
Wallumbilla compressor electrification initiative
and enhanced methane measurement pilot, the
expected cost of our gas infrastructure emissions
reduction initiatives for the period FY23–30 are likely
to require revision, which is currently estimated to
be an increase in the order of $100 million due to:
1. Increases in capital costs for the Wallumbilla
compressor electrification initiative, largely
associated with bringing electricity to the
site and market escalation of capital costs.
This project remains subject to a Final
Investment Decision.
2. Operational and capital costs associated with
enhanced methane measurement.
Further work will be undertaken in FY25 to confirm
the cost impact. The original CTP expenditure
estimates were based on preliminary assumptions
that have been revised following the selection of
a specific site for the compressor electrification
initiatives and completion of more detailed scoping
for both initiatives.
We will further revise program and gas infrastructure
emissions reduction costs following the development
of our next Climate Transition Plan as we continue
to explore other options for emissions reduction.
This includes through our Pathfinder Program, which
continues to investigate emerging technologies and
renewable gases to support delivery of sustainable
energy solutions for our customers. For example,
in March 2024, the Future Energy team launched
an expression of interest initiative seeking to source
biomethane supplies to displace emissions from
natural gas and power generation infrastructure.
Our power generation and electricity transmission
goals are investment-led and as such, will be
funded by growth capital. Expenditure will be
announced at the time of final investment decision
on each individual project.
44
ANNUAL REPORT 2024
APA GROUP
ENVIRONMENT (CONTINUED)
We seek respectful and valued relationships
with First Nations People and community
members, working to understand and respond
to their feedback and contribute to local
sustainable development.
As part of this we manage heritage and social
performance to ensure we develop and operate
our assets in a sustainably-responsible way.
First Nations Peoples and reconciliation
As a truly nation-wide business, APA owns and
operates energy infrastructure across many lands
traditionally owned by First Nations Peoples and
we have a significant opportunity to advance
reconciliation and create opportunities for prosperity,
for all Australians.
In October 2023, we launched our inaugural
Reconciliation Action Plan (RAP). The Reflect RAP
builds on the work already underway across our
business with First Nations stakeholders, laying the
foundations across APA for future reconciliation
initiatives in successive plans.
Our Reflect RAP provides an action plan of 72
commitments aimed at promoting reconciliation,
strengthening relationships with First Nations
stakeholders and organisations, increasing cultural
awareness, boosting employment of First Nations
Peoples, and increasing opportunities for First Nations
suppliers and businesses to support improved
economic and social outcomes.
Some outcomes of the RAP in FY24 included:
• the establishment of governance structures
to drive delivery against RAP commitments
• initiation of cultural learning including targeted
sessions for the Executive Leadership group
and Board
• strengthened engagement of First Nations-
owned businesses in the APA supply chain with
50 First Nations businesses engaged in FY24.
Social licence
36 of 72 Reconciliation Action
Plan commitments delivered
and remaining 36 on track.
11,979 landholders engaged
through our Landholder
Contact Program.
$2,754, 000 spend with
First Nations businesses.
Community and social performance
APA is committed to working with our communities
to deliver the energy transition. We recognise
that having strong social performance policies
and systems in place is critical to strengthening
our working relationships and level of trust with
key stakeholders including our community and
First Nations stakeholders. In FY24, we established
foundational social performance requirements
across APA, drawing on best practice, to ensure
we maintain and foster our social licence.
This year we commenced the implementation of
our systems approach to community and social
performance through a pilot in the Mount Isa region.
The pilot aims to strengthen understanding and
relationships with the community while supporting
customer commitments towards transition in the
region. The pilot will continue delivery into FY25.
Developing and maintaining social performance
systems also supports the foundations of our
Human Rights Policy and our approach to ‘just
transition’, both planned for development in FY25.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
45
APA GROUP
ANNUAL REPORT 2024
CASE STUDY
Biodiversity Australia
Biodiversity Australia is a renowned
Indigenous-owned organisation specialising
in ecological surveys, biodiversity conservation
and environmental management. The
company employs botanists and ecologists
to deliver high-quality environmental services
while promoting First Nations training and
employment.
After APA attended the Connect2022
tradeshow (Supply Nation’s flagship annual
tradeshow), we invited Biodiversity Australia
to tender for our national Weed Survey
Program. We conducted a rigorous tender
process, inviting seven suppliers with expertise
in field-based ecological studies.
After meticulous evaluation, Biodiversity
Australia emerged as the preferred supplier,
demonstrating alignment with APA’s objectives
and commitment to First Nations engagement.
Biodiversity Australia’s team completed
surveys on schedule, within budget, and
without safety incidents, highlighting efficient
project management and safety protocols.
They achieved a high standard of completion,
meeting project objectives effectively and
ensuring quality assurance.
After a successful initial 12-month term, their
contract was renewed. Across the three-year
contract we are forecast to spend close to
$1 million with the Biodiversity Australia team.
Our collaboration has led to successful
outcomes, providing expert knowledge
and fostering positive relationships with
First Nations communities.
Young Depot, NSW
46
ANNUAL REPORT 2024
APA GROUP
SOCIAL LICENCE (CONTINUED)
Landholder Contact Program
We recognise the importance of maintaining a
trusted relationship with landholders to support
our operational activities in areas of shared tenure.
In FY24, we continued to run the annual
APA Landholder Contact Program. This program
focuses on building a two-way dialogue where
landholders keep us updated on their activities,
access and notifications requirements, along
with raising any concerns they may have and
we share operational and safety information
with landholders and provide Before-You-Dig
information to support the safety of our operating
assets and the stakeholders located nearby.
The Landholder Contact Program aims to make
contact with at least one representative from each
parcel on our operational footprint every year,
preferably face to face. In FY24, we exchanged
information with 11,979 landholder contacts.
Over the past few years we have consistently
achieved at least 80% of contacts completed in
all major states. In most cases we have achieved
over 90% and in FY24 all states achieved at least
92% completion, and 95% nationally.
Social investment
APA continued to invest in outcomes for communities
in which we operate in line with APA’s Priority Funding
Areas as disclosed in APA’s FY22 Sustainability Report.
In FY24, we provided $1,329,836 in social investment
across partnerships, grants and employee-driven
initiatives.
We continued our investment in community
partnerships and local community support,
prioritising rural and regional communities,
First Nations people, climate transition and
natural environment protection.
Our corporate partnerships are a key part of this.
In FY24, our corporate partners included:
• The Fred Hollows Foundation: Supporting
health outcomes for First Nations Peoples
through their Indigenous Australia Program.
• The Clontarf Foundation and the Stars
Foundation: Supporting educational
and wellbeing outcomes for Aboriginal
and Torres Strait Islander boys and girls.
• Rural Aid: Providing critical support to farmers
affected by natural disaster through financial,
wellbeing and fodder assistance and helping
to create more sustainable communities by
building stronger futures for Australian farmers.
• Uniting: Delivering energy literacy programs
to provide ongoing financial counselling
support for energy customers facing vulnerable
circumstances.
In addition to the partnerships, in FY24 APA
contributed to grants across almost 30 community
organisations as part of our Community Grants
Program. Projects funded under this program
included First Nations initiatives, social infrastructure
investment, and community health and wellbeing
initiatives across our East Coast Grid Expansion,
Kurri Kurri Lateral Pipeline, and Mount Isa and
Cloncurry assets.
Modern slavery
In FY24, we have progressed our Modern Slavery
Program by delivering modern slavery training
to the Executive Leadership Team and APA Board.
This is an important step in the uplift in APA’s
maturity in managing this risk and ensures
Directors and executives are aware of their
respective obligations as Directors and Officers.
More broadly, we continued our Modern Slavery
training program for identified key roles, delivering
face-to-face training for new starters and an
annual refresher module throughout the year.
In addition, we held a Lunch and Learn awareness
session for all employees. We are committed to
ensuring employees understand modern slavery
risks and the steps to raise concerns.
APA successfully renewed our Charted Institute
of Procurement and Supply (CIPS) Corporate
Ethics Mark, as a demonstration of our ongoing
commitment to ethical procurement practices.
We progressed the development of a Supplier
Code of Conduct which is due to be finalised
in FY25 and piloted a modern slavery tender
questionnaire with the intent to roll out to all
tender events using the newly implemented
Workday system.
In early lessons, we identified that a selection
of suppliers provide a broad range of goods and
services and participated in multiple sourcing
events. This resulted in us sending suppliers
repeated requests to complete the same
questionnaires. Through collaboration with the
Procurement Governance and Procurement
Managers, we have conceptualised an alternate
approach, which is being developed. In the interim,
high-risk categories continue to use the current
modern slavery questionnaire.
Throughout the year the Modern Slavery Team
continued to monitor APA’s supply chain for
emerging modern slavery risks and conducted
assessments for high-risk categories of spend.
This work has helped inform the development
of a step-by-step playbook comprising mitigating
actions for high-risk suppliers which will be
introduced in FY25.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
47
APA GROUP
ANNUAL REPORT 2024
Financials
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and profit before tax excluding
significant items are financial measures not prescribed by Australian Accounting Standards (AASB) and represent
the profit under AASB adjusted for specific non-operating and significant items. The Directors consider these measures
to reflect the core earnings of APA Group, and therefore these are described in this report as ‘underlying’ measures.
In FY24, APA delivered a solid result, as shown in the table below. Underlying EBITDA increased 9.7%
to $1,893 million (FY23: $1,725 million) representing growth across all business segments, particularly
the Energy Infrastructure segment with an initial eight-month contribution from Pilbara Energy System
acquired on 1 November 2023, partly offset by higher corporate costs.
Key financial data for FY24
30 June 2024
30 June 2023
Changes
$m
$m
$m
%1
Statutory revenue
Total revenue
3,064
2,913
151
5.2%
Pass-through revenue 2
473
512
(39)
(7.6)%
Total revenue excluding pass-through
2,591
2,401
190
7.9%
Total segment revenue excluding pass-through3
2,582
2,353
229
9.7%
Underlying EBITDA4
1,893
1,725
168
9.7%
Fair value gains/(losses) on contract for difference
(17)
12
(29)
n.m.
Technology transformation projects
(84)
(67)
(17)
(25.4)%
Wallumbilla Gas Pipeline hedge accounting discontinuation
(38)
(37)
(1)
(2.7)%
Pilbara Energy System integration costs
(14)
–
(14)
n.m.
Basslink debt revaluation, interest and integration costs
–
47
(47)
n.m.
Basslink AEMC market compensation
–
15
(15)
n.m.
Payroll review
(4)
(9)
5
55.6%
Total reported EBITDA
1,736
1,686
50
3.0%
Depreciation and amortisation expenses
(919)
(750)
(169)
(22.5)%
Total reported EBIT
817
936
(119)
(12.7)%
Net finance costs and interest income
(579)
(459)
(120)
(26.1)%
Significant items5
835
–
835
n.m.
Profit before income tax
1,073
477
596
124.9%
Income tax expense
(75)
(190)
115
60.4%
Statutory profit after tax including significant items
998
287
711
247.7%
Profit after tax excluding significant items
119
287
(168)
(58.5)%
Financial position
Total assets
19,563
15,866
3,697
23.3%
Total drawn debt 6
12,893
11,240
1,653
14.7%
Total equity
3,248
1,910
1,338
70.1%
Financial ratios
Free cash flow 7
1,073
1,070
3
0.3%
Free cash flow per security (cents)
83.6
90.7
(7.1)
(7.8)%
Earnings per security including significant items (cents)
78.9
24.3
54.6
224.7%
Earnings per security excluding significant items (cents)
9.4
24.3
(14.9)
(61.3)%
Distribution per security (cents)
56.0
55.0
1.0
1.8%
Distribution payout ratio (%)8
67.0
60.6
6.4
10.6%
Weighted average number of securities (millions)
1,265
1,180
85
7.2%
1
Positive/negative changes are shown relative to impact on profit or other relevant performance metric.
2 Pass-through revenue is offset by pass-through expense within EBITDA. Any management fee earned for the provision of these services is recognised
as part of asset management revenues.
3 Total segment revenue excluding pass-through is total revenue excluding pass-through revenue, recurring items arising from other activities
(including interest earned from cash and cash equivalents) and transactions that are not directly attributable to the performance of APA Group’s
business operations.
4 Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) excludes recurring items arising from other activities, transactions
that are not directly attributable to the performance of APA Group’s business operations and significant items.
5 Significant items comprising of $1,051 million fair value remeasurement of APA’s previously held 88.2% interest in Goldfields Gas Pipeline, partly offset
by $72 million Pilbara Energy System acquisition costs and $144 million non-cash impairment of the Moomba Sydney Ethane Pipeline (MSEP).
6 APA’s ability to repay debt at relevant due dates of the drawn facilities. This amount represents the facilities used at balance date in nominal terms
of $12,996 million (2023: $11,561 million), translated to Australian dollars at the hedged rate and where the debt is hedged to currency other than
Australian dollars, translated at the spot rate at balance date.
7 Free cash flow is Operating Cash Flow adjusted for strategically significant transformation projects, acquisition and integration costs and capital returns
from joint ventures less stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.
8 Distribution payout ratio = total distribution applicable to the financial year as a percentage of free cash flow.
48
ANNUAL REPORT 2024
APA GROUP
APA’s total segment revenue (excluding pass-
through) increased $229 million or 9.7% to $2,582
million (FY23: $2,353 million) with Underlying EBITDA
increasing by $168 million or 9.7% to $1,893 million
(FY23: $1,725 million).
The FY24 results reflect a solid performance from
acquisitions and new assets with a full year’s
contribution from Basslink and an initial eight-
month contribution from the Pilbara Energy System,
acquired on 1 November 2023.
Statutory profit after tax including significant items
increased by 247.7% to $998 million (FY23: $287
million) driven by significant items in relation to the
acquisition of the Pilbara Energy System partly offset
by the $144 million non-cash impairment of the MSEP
driven as a result of its single customer entering
voluntary administration and ceasing operations.
As part of the Pilbara Energy System acquisition,
APA acquired the remaining 11.8% interest in Goldfields
Gas Pipeline. As required by accounting standards,
the acquisition resulted in APA’s historical 88.2%
interest being remeasured to fair value, resulting
in a valuation uplift of $1,051 million. In addition,
acquisition and estimated stamp duty costs of
$72 million have been incurred in FY24 as a result
of the purchase of the Pilbara Energy System.
Profit after tax excluding significant items was
$119 million (FY23: $287 million).
Net interest and other finance costs increased by
$120 million or 26.1%, to $579 million (FY23: $459 million)
driven by the establishment of the A$1.25 billion
syndicated term loan and the issuance of €500
million (A$828 million) hybrid subordinated capital
securities, both in November 2023. The average
interest rate applying to drawn debt was 4.77% for
FY24 (FY23: 4.43%), including credit margins. This
increase in average interest rate year-on-year
is largely due to the higher marginal interest rates
on the November 2023 transactions.
Depreciation and amortisation expenses increased
by $169 million or 22.5% due to the growth in the asset
base including the acquisition of the Pilbara Energy
System and changes to the useful life of certain
assets on 1 July 2023.
Income tax expense for FY24 of $75 million resulted
in an effective income tax rate of 7%, compared
with 39.8% in the previous year. The decrease is
predominantly due to the remeasurement of APA’s
previous 88.2% ownership interest in Goldfields
Gas Transmission Pipeline (GGTP), which does not
represent assessable income for tax purposes. This
is partially offset by the estimated stamp duty and
certain transaction costs incurred as part of the
acquisition of Pilbara Energy System entities, which
are not deductible for tax purposes.
FY24 cash tax payable is estimated at $37 million.
This has been reduced by tax losses, primarily those
relating to FY23 and the government’s Temporary Full
Expensing measures that ceased on 30 June 2023.
The effective cash tax payable rate is 3.4% including
significant items for FY24, compared to 0% in FY23.
APA has also published a 2024 Tax Transparency
Report, which includes a reconciliation of accounting
profit to income tax payable.
Free cash flow increased 0.3% to $1,073 million
(FY23: $1,070 million), due to increased earnings
partly offset by the impact of higher interest costs
and tax payments.
APA’s total assets increased $3,697 million or
23.3% to $19,563 million (FY23: $15,866 million)
driven by the $3.1 billion acquisition of the Pilbara
Energy System assets and $1.1 billion investment
in growth, stay-in-business and foundational
capital expenditure.
APA’s total equity increased $1,338 million
or 70.1% to $3,248 million (FY23: $1,910 million)
mainly driven by the $998 million statutory profit
after tax (including significant items), the $875
million impact of institutional and retail equity
raises in November 2023 (to partially fund the
acquisition of the Pilbara Energy System), partly
offset by $682 million of distributions paid to
securityholders during the year.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
49
APA GROUP
ANNUAL REPORT 2024
Business segment review
APA’s principal activities are:
FY24 performance
• Largest business segment contributor to
APA Group results
• Segment revenue (excluding pass-through)
increased 10.1% to $2,438 million (FY23: $2,215
million) and represents 94.4% of Group
segment revenue (excluding pass-through)
• Underlying EBITDA increased 9.3% to
$1,959 million (FY23: $1,793 million) and
represents 95.3% of Group Underlying EBITDA
(before corporate costs)
East Coast Gas
Underlying EBITDA increased 3.7% to $669 million
(FY23: $645 million), driven by inflation-linked
revenues and higher customer demand on the
SWQP and MSP. This was partially offset by lower
demand for short-term contracts on the RBP
and lower earnings on the MSEP with its single
customer entering voluntary administration
and ceasing operations.
Wallumbilla Gladstone Pipeline (WGP)
Underlying EBITDA increased 6.0% to $657 million
(FY23: $620 million). The increase was due to US
inflation-linked tariff escalations and favourable
foreign exchange rates during the period.
West Coast Gas
Underlying EBITDA increased 13.8% to $347 million
(FY23: $305 million). The increase was driven by
higher inflation-linked revenues, higher customer
demand at Mondarra, the acquisition of the
remaining 11.8% interest in the GGP, and the
commissioning of Northern Goldfields Interconnect.
Contracted Power Generation
Underlying EBITDA increased 25.1% to $249 million
(FY23: $199 million). The increase was driven by
the acquisition of Pilbara Energy System and the
commissioning of the Dugald River Solar Farm,
partly offset by lower earnings at Diamantina
Power Station.
Electricity Transmission
Underlying EBITDA increased 54.2% to $37 million
(FY23: $24 million). The increase was driven by
a full year’s contribution from Basslink, partly
offset by business development costs.
Assets by business unit
East Coast Gas
• South West Queensland Pipeline (SWQP)
• Moomba Sydney Pipeline (MSP)
• Moomba Sydney Ethane Pipeline (MSEP)
• Victorian Transmission Systems
• Roma Brisbane Pipeline (RBP)
• Carpentaria Gas Pipeline
• Other Queensland assets
• Amadeus Gas Pipeline
• SESA Pipeline and other South Australia assets
Wallumbilla Gladstone Pipeline (WGP)1
West Coast Gas
• Goldfields Gas Pipeline (GGP)
• Eastern Goldfields Pipeline
• Mondarra Gas Storage and Processing Facility
(Mondarra)
• Pilbara Pipeline System
• Northern Goldfields Interconnect
• Other Western Australia assets
Contracted Power Generation
• North West Power System
• Badgingarra Wind and Solar Farms
• Emu Downs Wind and Solar Farms
• Darling Downs Solar Farm
• Gruyere Power Station
• Pilbara Energy System
Electricity Transmission
• Basslink and others
Energy Infrastructure
Energy
Infrastructure
APA’s wholly or majority-owned
energy infrastructure assets across
gas transmission, compression,
processing, storage, and electricity
generation (gas and renewables)
and transmission and battery
energy storage system.
Asset
Management
The provision of asset
management and operating
services for third parties and the
majority of APA’s investments.
Energy
Investment
APA’s interests in energy
infrastructure investments.
1
Wallumbilla Gladstone Pipeline is separated from East Coast Gas as a result of the significance of its revenue and EBITDA in the Group.
50
ANNUAL REPORT 2024
APA GROUP
FINANCIALS (CONTINUED)
Energy Infrastructure revenue
(excluding pass-through)
FY21
FY22
FY23
FY24
1,994
2,095
2,215
2,438
0
5,00
1,000
1,500
2,000
2,500
(A$m)
Energy Infrastructure EBITDA
1,624
1,707
1,793
1,959
0
500
1,000
1,500
2,000
2,500
FY21
FY22
FY23
FY24
(A$m)
FY24 Energy Infrastructure by counterparty credit rating
44% A- rated or better
29% BBB to BBB+ rated
9% BBB- rated
5% Sub-investment grade
13% Not rated
~83%
Investment
grade
FY24 Energy Infrastructure by revenue type
68% Capacity charge revenue
15% Regulated revenue
3% Contracted fixed revenue
13% Throughput charge and other variable revenue
1% Flexible short-term services
~86%
Take or
pay/regulated
FY24 Energy Infrastructure by customer industry segment
44% Energy
25% Utility
28% Resources
2% Industrial
1% Others
Diverse
Source of
revenue
FY24 revenue analysis
Stable contracted revenue providing predictability
and cash flow support.
Diversification of customers and industry exposures.
East Coast Gas
Wallumbilla Gladstone Pipeline
West Coast Gas
Contracted Power Generation
Electricity Transmission
East Coast Gas
Wallumbilla Gladstone Pipeline
West Coast Gas
Contracted Power Generation
Electricity Transmission
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51
APA GROUP
ANNUAL REPORT 2024
Asset Management
FY24 performance
• Segment revenue (excluding pass-through)
increased 2.6% to $118 million (FY23: $115 million)
contributing 4.6% to Group segment revenue
(excluding pass-through). Customer contributions
for FY24 were $16 million (FY23: $15 million).
• Underlying EBITDA increased 23.2% to $69 million
(FY23: $56 million) contributing 3.4% to Group
Underlying EBITDA (before corporate costs).
• The 23.2% increase in Asset Management
underlying EBITDA was largely driven by higher
recoverable works which fluctuate from one period
to the next, together with lower operational costs.
• APA’s major third-party customers are Australian
Gas Networks Limited (AGN), Energy Infrastructure
Investments (EII) and GDI, who receive asset
management services under long-term contracts.
Asset Management revenue
(excluding pass-through)
FY21
FY22
FY23
FY24
117m
115m
115m
118m
0
20
40
60
80
100
120
(A$m)
Underlying Asset Management revenue
One-off customer contributions
Asset Management EBITDA
FY21
FY22
FY23
FY24
80m
73m
56m
69m
0
20
40
60
80
100
(A$m)
Underlying Asset Management EBITDA
One-off customer contributions
52
ANNUAL REPORT 2024
APA GROUP
FINANCIALS (CONTINUED)
Energy Investments
FY24 performance
• Earnings increased 13.0% to $26 million (FY23:
$23 million) contributing 1.0% to Group segment
revenue (excluding pass-through) and 1.3% to
Group Underlying EBITDA (before corporate costs).
• The 13.0% increase in Energy Investment earnings
is largely due to increased equity income from
SEA Gas as a result of higher variable revenue.
Asset and ownership interests
Asset details and APA services
Partners
Mortlake Gas Pipeline
50%
SEA Gas
(Mortlake)
Partnership
83 km gas pipeline connecting the
Otway Gas Plant to the Mortlake
Power Station
MAINTENANCE
REST
SEA Gas Pipeline
50%
South East
Australia
Gas Pty Ltd
687 km gas pipeline from Iona and
Port Campbell in Victoria to Adelaide
MAINTENANCE
REST
North Brown Hill Wind Farm
20.2%
EII2
132 MW wind farm in South Australia
CORPORATE SERVICES
Foresight
Osaka Gas
Allgas Gas Distribution Network
20%
GDI
~3,900 km Allgas gas distribution
network in Queensland with
~114,000 connections
CORPORATE SERVICES
OPERATIONAL MANAGEMENT
Marubeni
Corporation
State Super
Kogan North Processing Plant
Directlink and Murraylink
Electricity Interconnectors
Nifty and Telfer Gas Pipelines
Wickham Point and Bonaparte
Gas Pipelines
19.9%
Energy
Infrastructure
Investments
Gas processing facilities 12 TJ/day
Electricity transmission 243 km
Gas pipelines totalling 786 km
CORPORATE SERVICES
OPERATIONAL MANAGEMENT
MM Midstream
Investments
Osaka Gas
Corporate costs
Corporate costs increased 9.5% to $161 million (FY23:
$147 million) predominantly due to the continued
investments in corporate capability, technology,
sustainability and a non-cash Long Term Incentives
(LTI) mark-to-market adjustment. Corporate costs are
up 6.3% excluding the impact of the LTI adjustment,
which reflects moderation of the corporate cost base
growth. APA has been building the capability of its
business, including strengthening investments in
technology and business resilience; regulatory, risk
and compliance; sustainability and corporate affairs.
This investment is aligned to our strategy to grow
and capitalise on the energy transition opportunity.
OVERVIEW
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INFORMATION
53
APA GROUP
ANNUAL REPORT 2024
Capital management
APA Group’s objectives when managing capital are to balance growth in distributions to investors and
investments to create long-term value with funding via an efficient mix of debt and equity.
Securityholder returns
On 28 August 2024, the Directors announced a final distribution of 29.50 cents per security, taking APA’s FY24
total distributions to 56.0 cents per security, in line with guidance. This represents an increase of 1.8%, or
1.0 cents, over the FY23 distributions of 55.0 cents per security. We reactivated our distribution reinvestment
plan during the year.
To assist APA securityholders who wish to submit their annual tax return before receiving their annual APA Tax
Statement in mid-September, APA has an indicative online tax estimator tool which is available on the Investor
page on APA’s website.
Prospective projects
In FY24, APA progressed work on several other large
projects including:
• Beetaloo Basin, Northern Territory: In FY24, APA
signed an initial agreement with Empire Energy
Group to progress works associated with the
development of Empire Energy’s pilot project. The
project seeks to connect Empire Energy’s acreage
in the Beetaloo Basin to the existing McArthur River
Mine Pipeline. Under the initial agreement, APA will
commence pre-engineering studies to potentially
develop gathering pipelines, gas processing
infrastructure and transmission pipeline
infrastructure.
• Kurri Kurri Lateral Pipeline, New South Wales:
APA reached a final investment decision to build
the Kurri Kurri Lateral Pipeline, connecting the
Hunter Power Project to the existing Sydney to
Newcastle Pipeline. Under the agreement, APA
will build, own and operate the Kurri Kurri Lateral
Pipeline, a gas transmission pipeline approximately
20 km in length and a 70TJ gas storage facility to
service the Hunter Power Project.
Access to capital
APA Group continues to target BBB/Baa2 investment
grade credit ratings through maintaining sufficient
flexibility to fund organic growth and investment from
internally generated cash flows, debt funding and,
where appropriate, additional equity.
The capital structure of APA Group consists of cash
and cash equivalents, borrowings (including a
hybrid subordinated bond) and equity attributable
to securityholders of APA.
At 30 June 2024, APA had 1,283,352,928 securities
on issue. This increased from 1,179,893,848 at
30 June 2023.
Regulated growth capex
Non-regulated growth capex
SIB capex
Foundation capex
Acquisitions
Capital expenditure
FY24 capital and investment expenditure
FY24
FY23
2,711m
1,180m
0
500
1,000
1,500
2,000
2,500
3,000
(A$m)
Regulated growth capex
• Western Outer Ring Main
• Victorian Transmission System
Non-regulated growth capex
• East Coast Gas Expansion
• Basslink
• Kurri Kurri Lateral Pipeline
• Northern Goldfields Interconnector
• Port Hedland Solar and Battery Projects
SIB capex
• Pipeline integrity works across the portfolio
• Diamantina Power Station maintenance program
• Pilbara Energy System asset maintenance
Foundation capex
• Technology investments
• Corporate Real Estate
Acquisitions
• Pilbara Energy System
54
ANNUAL REPORT 2024
APA GROUP
FINANCIALS (CONTINUED)
Debt facilities
At 30 June 2024, APA had $12,893 million of drawn
debt facilities (compared with $11,240 million at
30 June 2023). APA’s debt portfolio has a broad
spread of maturities across the global debt capital
markets extending out to FY46, with an average
maturity of drawn debt of 5.3 years.
At year end, 100% of interest obligations on gross
drawn borrowings was either hedged into or issued
at fixed interest rates for varying periods extending
out to FY46.
In November 2023 APA raised €500 million
($828 million) in the form of a hybrid subordinated
notes and $1.25 billion in the form of a syndicated
term loan.
In May 2024 APA conducted a tender offer for its
outstanding £350m MTN Notes due in November
2024. The tender was received positively with ~63%
or £221m acceptance and the remaining £129m will
be redeemed at maturity on 26 November 2024.
As part of the Pilbara acquisition APA acquired
$104 million in secured funding from the North
Australia Infrastructure Facility (NAIF) ($80 million)
and the Australian Renewable Energy Agency
(ARENA) ($24 million). These are not included in
the APA core guarantor group, however they are
100% owned and therefore are included in APA’s
total group debt obligations.
Credit ratings
During the year, APA Infrastructure Limited (APAIL),
the borrowing entity of APA, maintained two
investment grade credit ratings:
• BBB long-term corporate credit rating (outlook
Stable) assigned by Standard & Poor’s (S&P) in
June 2009, and last confirmed on 18 December 2023
• Baa2 long-term corporate credit rating (outlook
Stable) assigned by Moody’s Investors Service
(Moody’s) in April 2010, and last affirmed on
6 November 2023.
APA calculates the Funds From Operations (FFO)
to Interest to be 3.2x (FY23: 3.4x) and FFO to Net Debt
to be 10.3 for FY24 (FY23: 11.0%).
FFO to Net Debt is the key quantitative measure used
by S&P and Moody’s to assess APA’s creditworthiness
and credit rating.
Treasury risk management
APA’s policy is to maintain balanced and diverse
funding sources through raising funds locally and
overseas from a variety of capital markets, including
bank loan facilities, to meet anticipated funding
requirements.
APA manages liquidity risk by maintaining adequate
cash reserves and banking facilities, monitoring and,
forecasting cash flow and where possible, arranging
liabilities with longer maturities to closely match its
underlying assets.
Diversity of funding sources and maturities
FY2025
FY2026
FY2027
FY2028
FY2029
FY2030
FY2031
FY2032
FY2033
FY2034
FY2035
FY2036
4.51%
n/a
4.64%
5.29%
5.79%
4.48%
5.09%
4.54%
3.78%
6.56%
5.00%
4.24%
FY2042
2.25%
FY2047
0%
0
500
1,000
1,500
2,000
2,500
Average
interest
rate
198.2
1,544
700
350
500
1,307.5
1,108.5
550
500
828.2
928.2
1,328.6
750
1,017.8
742.4
773.5
500
132.9
449.9
452.1
77
24
Corporate
Liquidity
Facilities
Syndicated
Term Loan
EUR Hybrid
JPY MTN
EUR MTN
GBP MTN
USI44a
NAIF
ARENA
OVERVIEW
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APA INFRASTRUCTURE
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INFORMATION
55
APA GROUP
ANNUAL REPORT 2024
Major trends
Industry, together with governments, continue to
confront the challenge of balancing the competing
demands of the energy sector to deliver reliable,
affordable and lower emissions energy.
Like most countries, Australia strives to balance
these three interconnected objectives as lower
emissions variable renewable electricity (VRE)
begins to replace coal-fired generation.
Both Federal and state governments throughout
Australia are adjusting policy settings in energy
markets to set Australia on a pathway to net zero.
In May 2024, the Federal Government published its
Future Gas Strategy. The strategy recognises that gas
is essential to supporting Australia’s decarbonisation
and that gas-powered generation (GPG) will ensure
the reliability of Australia’s electricity supply as coal
exits the system. The strategy adopts six principles
that will guide future policy actions to achieve the
strategy’s aims. The principles state that gas must
remain affordable for Australian users through the
transition to net zero and that new sources of gas
are needed to meet demand.
Government concerns about the reliability and
affordability of energy, however, mean that
interventions in electricity, gas and coal markets
have continued. These interventions include:
• A significant expansion of the Capacity Investment
Scheme (CIS) to a target of 32 GW of renewable
generation and dispatchable capacity. The CIS
does not include gas generation.
• The Victorian and NSW Governments announced
agreements with the owners of the Loy Yang A
and Eraring Coal Power stations respectively
to maintain the operation of those assets.
• The Federal Government extension to the wholesale
gas price cap of $12/GJ until at least mid-2025 and
formalisation of the exemptions regime for producers
who focus on maintaining domestic supply.
External
environment
We are committed to working with customers,
communities, investors and governments to deliver
an energy transition that prioritises reliable, affordable
and lower emissions energy for all Australians.
• The Federal Government announcement that
the $125/t coal price cap for Queensland and
New South Wales would cease on 30 June 2024.
In September 2023, legislative amendments
incorporating an emissions reduction objective took
effect in the National Electricity Objective, National
Gas Objective and National Energy Retail Objective.
These amendments require the energy market
bodies – including the Australian Energy Regulator
(AER), AEMC and Australian Energy Market Operator
(AEMO) – to consider emissions reduction when
exercising their powers and functions. In May 2024,
the AER released final guidance on how it would value
emissions reductions in regulatory processes.
New monitoring and information-gathering powers
for energy market regulators were also announced
throughout the year. Legislation is being progressed
that will expand the AER’s monitoring and reporting
functions to include wholesale gas markets and
electricity and gas contract markets.
Regulatory matters
Gas pipelines in Australia are regulated under the
National Gas Law (NGL) and National Gas Rules (NGR)
by the AER or the Economic Regulation Authority of
Western Australia (ERA).
On 2 March 2023, amendments to the NGL and
NGR were proclaimed and came into effect across
all states except Western Australia. The legislative
amendments establish two forms of gas regulation:
• Scheme pipeline: Subject to a ‘heavier’ form of
regulation with five-yearly access arrangement
reviews (which typically take 12–15 months) and
the AER setting a ‘reference tariff’ and a ‘regulated
asset base’ (RAB).
• Non-scheme pipeline: Subject to a ‘lighter’ form
of regulation with extensive information and price
disclosure – service providers publish actual prices
paid by every customer on every pipeline, and
arbitration in the event of disputes.
56
ANNUAL REPORT 2024
APA GROUP
Following this legislative change, the AER has the
power to determine the form of regulation to apply
to a particular pipeline. This means the AER can
decide to apply a heavy form of regulation to
pipelines that are currently subject to a light form
of regulation, or vice versa. In the event that heavy
regulation applies, the AER would then have the
role of approving capital and operating expenditure
and rates of return under five-year access
arrangement proposals.
South West Queensland Pipeline form
of regulation review
In February 2024, the AER commenced a regulation
review on the APA-owned and operated South West
Queensland Pipeline (SWQP), which is currently
subject to the lighter form of regulation. On 6 March
2024, the AER published a discussion paper seeking
stakeholders’ views on the form of regulation
for the SWQP. The AER expects to publish a draft
decision in September 2024 and a final decision
in November 2024.
Basslink regulatory conversion application
APA lodged an application to convert Basslink
to a regulated Transmission Network Service
Provider on 14 September 2023 and expects
a final determination by February 2025.
Other key regulatory processes
During 2023–24, other key regulatory processes
relating to APA assets included:
• Goldfields Gas Pipeline: On 21 December 2023,
Goldfields Gas Transmission (GGT) submitted its
2025–29 access arrangement proposal to the ERA.
The ERA’s final decision is expected to be published
in December 2024.
• Directlink Interconnector1: On 30 January 2024,
Directlink submitted its 2025–30 revenue proposal
to the AER. We expect a final decision from the
AER in April 2025.
• Amadeus Gas Pipeline: On 1 July 2025, APA will
submit its access arrangement proposal to the
AER for the 2026–31 regulatory period. We have
commenced consumer engagement to help
inform our proposal.
• APA Port Hedland Network: APA DEWAP’s
electricity transmission network in the North-
West Interconnected System in Western Australia
is subject to light regulation under the Pilbara
Networks Access Code (PNAC). On 31 May 2024,
APA DEWAP published access, pricing, system, and
planning documents for the second pricing period
for public consultation as required under the PNAC.
Final documents were published on 28 June and
took effect from 1 July 2024.
Energy industry policy developments
In FY24, we continued to engage in national and
jurisdictional policy processes predominantly
focused on gas frameworks, electricity market
reforms and the decarbonisation of the economy.
Our submissions included the following key actions:
• Gas strategy: APA submitted that gas and
gas-powered generation is critical to support
renewables and Australia’s transition to net zero.
Our submissions stressed the importance of policy
support for gas-powered generation and the
criticality of bringing new gas supplies to market.
• Electricity market reforms: APA engaged in various
initiatives relating to national and jurisdictional
electricity frameworks, including proposed reform
of transmission access frameworks.
• Hydrogen and renewable gas reforms: APA
lodged submissions to various jurisdictional
processes proposing market-based schemes
to support the development of renewable gases,
including hydrogen.
• Decarbonisation of the economy: APA supported
amendments to the National Energy Objectives
and the Safeguard Mechanism to help drive the
decarbonisation of the economy.
1
APA has 19.9% ownership of Directlink.
OVERVIEW
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57
APA GROUP
ANNUAL REPORT 2024
Embracing
Optimising
Future
proofing
Risks and
opportunities
the energy transition
opportunity
outcomes in an
increasingly regulated
and fluid environment
APA with the right
capability and technology
APA is a leading energy infrastructure
business, and as such, is exposed to risks
that can have a material impact on the
responsible delivery of energy and our
financial success. We have summarised
our approach to managing our material
risks below.
Image: Newman Power Station, WA
58
APA GROUP
ANNUAL REPORT 2024
Risk management framework
Our risk management framework supports the
identification, management, escalation and reporting
of material risks. By implementing an effective risk
management framework, APA’s Board and Executive
Leadership Team ensure strategies are in place to
manage potential threats and optimise opportunities.
APA adopts a ‘Three Lines’ model for managing risks
and controls to promote the behaviours and decision
making that underpins an appropriate and cohesive
risk culture.
In the first line, every employee is accountable for
day-to-day risk management and decision making
within approved risk appetite guidelines.
In the second line, APA’s enterprise and specialist risk
teams review and monitor first line risk management
activities and report on the adequacy of risk
management to the Executive Leadership Team
and the Board’s Risk Management Committee.
In turn, this enables independent assurance by the
third line.
Key:
Accountability, reporting
Delegation, direction, resources, oversight
Alignment, communication, coordination, collaboration
BOARD
Accountable to stakeholders for organisational oversight
RISK MANAGEMENT COMMITTEE/AUDIT AND FINANCE COMMITTEE
Delegates, directs, ensures adequate resourcing and provides oversight
EXECUTIVE RISK MANAGEMENT COMMITTEE
Accountable for risk and reporting to the
Risk Management Committee
MANAGEMENT
INTERNAL AUDIT
LINE ONE
Owns and manages risks
LINE TWO
Builds, reviews and supports
LINE THREE
Independent assurance
Group Executives
Our People
Enterprise/Divisional Risk,
Compliance and Assurance
Teams, HSEH, Enterprise
Security, Enterprise PMO
Internal Audit
•
Provide products/services
to customers
•
Implement risk management
frameworks (identify, assess,
own and manage risks
to achieving objectives)
•
Own internal controls
and actions
•
Own and manage compliance
with legal, regulatory and
ethical expectations
•
Control attestation/
self-assessment
•
Provide expertise, support,
monitoring and challenge
on risk-related matters
•
Maintain and continuously
improve risk management
practices at an enterprise/
function, system or process level
•
Report on the adequacy and
effectiveness of risk management
•
Coordinate insurance
•
Maintain and implement
risk-based control assurance
programs at enterprise/
function level
•
Provide independent
and objective assurance
on all matters related to
achievement of objectives
•
Review that governance
structures and processes
are appropriately designed
and operating as intended
•
Provide oversight and
direction in aligning
governance activities
•
Conduct periodic
effectiveness reviews
of Line Two functions
EXTERNAL ASSURANCE PROVIDERS
(External Audit, Regulator Audit, Third Party Audit, Advisory Reviews)
OVERVIEW
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APA GROUP
ANNUAL REPORT 2024
Material risks
During FY24, key risks and opportunities impacting
our operational and financial performance included
the accelerating energy transition, notification of
regulatory review (that may increase the number of
regulated assets in our portfolio), societal concerns
relating to development of renewable energy
infrastructure, and emerging geopolitical risks.
To create and protect value, APA has focused on
these risks and opportunities, with action plans
in place to enable us to achieve our objectives.
Material risks have ongoing oversight by the
Board, Risk Management Committee and
Executive Leadership Team with a major priority
being the safety of our operations and supporting
activities to provide reliable energy to our customers,
and to maintain our financial strength to respond
to changes in the Australian energy market.
APA currently considers the following risks to have
the possibility of materially impacting our ability
to meet our business objectives. Material risks are
subject to enhanced oversight by management
and the Board Risk Management Committee.
This list is not exhaustive and is subject to change
as new risks emerge.
Strategic risks
Strategic risks are those uncertainties that could materially impact the business’s ability to implement
its strategic objectives.
Risk
Description
Managing the risk
Energy market
transition
Accelerating climate change and carbon
emissions (net zero) targets drives potential
for cleaner power generation, renewables
development, and energy innovation/new entrants
in markets.
Government net zero policies/targets and new
technologies could materially decrease the market
for gas and gas transportation and we may fail to
grow in other energy infrastructure classes, limiting
domestic market growth.
•
Execution of our customer-focused strategy
creates value as the partner of choice,
delivering infrastructure solutions for the
energy transition where we have a competitive
advantage across various asset classes.
•
Actively contribute to government policy
process and advocate for the importance of
APA’s role in supporting energy transition and
managing the intermittency of renewables.
•
Engage with customers and proactively
manage opportunities to retain, recontract or
switch to alternative APA assets via structured,
flexible and competitive price and service
offerings.
Government
and regulatory
intervention
APA is exposed to regulatory policy change and
government interventions.
These may be at federal, state or territory level
and may vary. They could include measures
designed to support decarbonisation, limit
the impacts of climate change or manage the
impact of Australia’s transitioning energy system.
Those policy changes and interventions may
constrain gas supply (including by limiting or
restricting new gas projects), impact the availability
of competitively priced gas, increase compliance
costs for APA and its customers or otherwise place
additional operating restrictions or complexities on
our business and the businesses of our customers.
The Australian Energy Regulator’s (AER) ongoing
form of regulation review may resolve to apply
full regulation to pipelines that are currently
non-scheme.
This may change the commercial viability of
existing or proposed projects or operations
and adversely impact our future business and
operations.
•
Maintain strong regulatory and policy functions
and be an active participant and stakeholder
in the development of regulation and policy.
•
Continually assess and respond to key policy
change proposals that have potential impacts
on our business.
•
Actively engage with updating/developing
relevant Australian standards.
Social licence
We rely on a level of public acceptance for
the development and operation of our assets.
Changing societal and community sentiment
in relation to the energy industry, as well as
our business, may impact our commercial
opportunities and our ability to develop new
projects and operate our assets.
•
Engage with key stakeholders (landholders,
producers, customers, government, traditional
owners, etc.) to identify focus areas.
•
Monitor expectations and major trigger
events within the community and APA’s
reputation score.
•
Drive community and social performance
initiatives and programs working with
First Nations People.
•
Deliver against commitments detailed
in our Reconciliation Action Plan (RAP).
•
Implement APA’s Climate Transition Plan and
Sustainability Roadmap and drive transparent
and proactive annual disclosure.
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RISKS AND OPPORTUNITIES (CONTINUED)
Risk
Description
Managing the risk
Operating multiple
asset types
Successful delivery of our strategy will depend
on effective integration and operation of a diverse
asset portfolio. Risks will arise from the need to
scale up and integrate existing asset structures
for managing people, processes and plant in
electricity generation and transmission.
•
Continue to invest in our capability in electricity
transmission development and engineering,
power generation optimisation and asset
development and integration.
•
Continuous improvement of existing asset
structure and framework for managing people,
processes and plant.
•
Continue to invest in maturing asset
management framework and real-time
data analytics.
Partnering
across multiple
stakeholder groups
APA’s engagement spans a diverse range of
stakeholders (e.g. across state and federal
Government agencies, community, landholders,
customers, suppliers, investors, and employees)
who hold different perspectives and objectives.
Risks arising from engagement with this complex
and changing set of stakeholders could lead
to reputation damage, loss of stakeholder
support/trust which ultimately affects our ability
to win projects, source approvals and diversify
into new energy markets.
•
The development of targeted state-based
stakeholder engagement plans to ensure
appropriate owners are assigned to
stakeholders and there is coordination and
consistent messaging across the business.
•
Continued investment in core capability
and targeted workforce planning.
Operational risks
Operational risks potentially arise from weaknesses in internal processes or systems or from unforeseen
external events.
Risk
Description
Managing the risk
Health and safety
Preventing workplace injury and safeguarding all
employees is our number one priority. Risks arise
from operating within our hazardous industry,
where safety events or major hazards have the
potential to cause illness, injury or impact the
safety (including psychological safety) and
wellbeing of our employees, contractors and
communities.
•
APA’s Board Safety and Sustainability
Committee, has oversight of this risk. The
key focus is prevention, which is achieved
by appropriately identifying, managing and
(where possible) eliminating risks.
•
Continued focus on comprehensive health
and safety management policies, strategies,
frameworks (including employee Wellbeing
Framework), systems and processes.
•
Report key performance metrics are in place
to monitor safe behaviours and identify
continuous improvement opportunities.
Asset operations
APA is exposed to major incidents or events that
may result in harm to our people, environment, and
the communities in which we operate or materially
impact our reputation or financial performance.
•
Comprehensive operational, process
safety, cultural heritage and environment
management programs.
•
Continued engagement with wider industry
to ensure alignment with best practice
asset management processes.
•
Manage assets in accordance with Australian
and International Standards, including a
comprehensive Asset Management Framework
with risk management, compliance and
assurance integrated into asset lifecycle
management, operation, integrity and
maintenance processes.
•
Conduct asset operational monitoring
through control rooms to manage assets
within design parameters and coordinate
asset maintenance issues.
•
Provide comprehensive insurance
arrangements as part of the asset
protection program.
OVERVIEW
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Risk
Description
Managing the risk
Infrastructure
development
Risks associated with the development of
new pipeline capacity, renewable, battery and
gas-fired power generation plants, gas storage
and gas processing assets. This includes typical
construction risks e.g. obtaining necessary
regulatory approvals, employee or equipment
shortages, supply chain constraints, third-party
contractor failure, weather risk and higher-
than-budgeted construction costs impacting
liquidated damages and project delays.
•
Dedicated access and approvals management
for new construction projects.
•
Strategic procurement and supply chain
management.
•
Manage the efficient, safe and quality delivery
of construction projects through dedicated
project management and governance.
Corporate
transformation
APA is exposed to the risks associated with
the design and delivery of enterprise-wide
corporate transformation programs. These
strategic programs include the transformation
of our core financial and people management
processes, technology platforms and capability
uplift to achieve our net zero targets and the
security of critical infrastructure.
•
Strong governance via an experienced
Enterprise Program Management Office.
•
Project/program reporting, risks and issue
management and escalation and oversight
by senior management and the Board.
Sustainability
The risks arising from the management and
disclosure of sustainability issues (including
climate and ESG matters) impacting APA
performance and reputation.
•
APA’s Board Safety and Sustainability
Committee have regular oversight of this risk.
•
Deliver comprehensive environment and
heritage management policies, strategies,
frameworks, systems and processes.
•
Formalise procedures supporting sustainability
including integrated reporting, an enhanced
scorecard and APA’s Sustainability Roadmap
and strategy.
People and culture
Our leaders are held accountable for creating
cultural alignment with APA’s Code of Conduct
to drive expected behaviours and establish a
workplace where everyone feels safe, respected
and included.
Our inclusive culture is a prerequisite to our
ability to attract, engage, develop and retain
a diverse pool of people with the required skills
and capabilities in a competitive talent market.
•
APA’s Board People and Remuneration
Committee has oversight of this risk.
•
Execution of effective talent programs to
develop and maintain talent pipelines.
•
Delivery of comprehensive learning and
development programs including leadership
programs to build the skills and capability
required for now and the future.
•
Implementation of inclusion and diversity
programs to improve diversity, employee
experience, inclusion and belonging.
•
Identification of clear expectations of
behaviour in APA’s Code of Conduct and
Respect at Work procedure.
Technology
strategy and
operations
The risk of interruption to APA’s operations due
to unreliability of information and operational
technology systems, applications, technology
architecture or third-party providers.
•
Manage APA’s information and technology
assets in accordance with recognised
industry standards across hardware, software,
applications and communication systems.
•
Regularly review and test information and
operational technology systems, including
SCADA control systems.
Cyber security
Cyber-attacks are increasing in frequency, scale
and sophistication across both our communities
and industry. We play a pivotal role in Australia’s
essential energy supply chain and could be the
target for a cyber incident. Breaches may involve
sensitive commercial and/or personal information
or impact the operation of critical infrastructure
assets and systems possibly leading to shutdowns
of our energy assets.
•
APA’s Board Risk Management Committee
has oversight of this risk
•
Continue to strengthen the security of APA
assets, cater for emerging threats, security
regulation and stakeholder expectations.
•
Robust security monitoring and incident
response processes supported by regular
exercises and security control assurance
programs.
•
Compulsory security awareness training
for APA Board, employees and contractors,
including how to identify phishing emails
and keep data safe and a regular program
of random testing.
•
Apply cyber security standards across APA
information and technology systems, including
those managed by third-party vendors, with
standards continually assessed against new
threats and vulnerabilities.
Operational risks (continued)
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RISKS AND OPPORTUNITIES (CONTINUED)
Financial and compliance risks
Financial risks are those arising from the management of APA’s financial resources, accounting, tax and
financial disclosures.
Risk
Description
Managing the risk
Legal, compliance
and operating
licences
APA is exposed to the risk of operating within
a highly regulated environment with complex
legal requirements, operating licence conditions,
industry standards/code of practice and
corporate obligations.
•
Comprehensive Enterprise Compliance
Management Framework is in place with
regulations identified, controls monitored
and assurance operating.
•
Dedicated specialist teams provide asset
level monitoring and assurance for technical,
safety, environment and cultural heritage
compliance.
Debt and capital
management
The risk arising from reduced business and
financial flexibility due to ineffective management
of APA’s debt and capital or limited availability, or
unfavorable pricing, timing and access to debt
and equity funding.
•
Board-approved risk limits and Treasury Risk
Management Policy.
•
Annual independent reviews of corporate
and asset models underpinning investment
decisions.
•
Effective debt and capital management
strategy and hedging against interest rate
movements and foreign currency rate
fluctuations.
•
Maintain access to a broad range of global
banking and debt capital markets.
Key emerging risks
Below we note several key emerging risks that are highly uncertain by nature.
These are reviewed by the Board Risk Management Committee regularly and the full Board in strategic
reviews on an annual basis.
Emerging Risk
Description
Approach
Global economic
slowdown
Global economic slowdown impacts financial
markets and customer demand, potentially
reducing gas contract capacity demand and
recontracting revenue, access to new debt
markets and liquidity and commodity prices.
•
Harness strong capital management
disciplines, including hedging arrangements
and customer credit monitoring.
•
Actively monitor commodity pricing impacting
the sourcing of goods and materials used
in large construction projects and domestic
demand.
•
Closely monitor changes in energy demand
including substitution.
Geopolitical
uncertainty
Geopolitical uncertainty with rising tensions
in the region and continuation of the Russia/
Ukraine and Middle East conflicts impacting
changes in sanctions regimes, international
energy demand, rising national security interests
and worsening supply chain disruption.
•
Continue to evaluate options for alternative
sources of supply for international construction
procurement.
•
Conduct resilience updates for information
technology infrastructure, including cyber
resilience.
•
Focus on gas reserving management,
including increases in gas line pack to
meet high demand periods.
Severe commodity
shocks
Abrupt shocks to the supply and demand of
systemically important commodities at a global
scale that strain budgets: chemicals, emissions,
energy, foods, metals and minerals.
•
Continue to diversify across energy sectors –
gas, wind, solar and batteries, as well as
diversifying our customer base.
Uncontrolled
misinformation and
disinformation
Simple to use interfaces of social media coupled
with AI has already enabled a volume of synthetic
content that deepens polarised views and
confrontation. There is a risk of misrepresentation
and long-term reputational damage and
disruption of business operations.
•
Continued planning and engagement with
local communities, government and the
media to ensure energy information is timely
and correct.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
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GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
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Outlook
Based on current available
information and with the
Pilbara Energy System
acquisition included in full
for FY25, Underlying EBITDA
1
guidance is being provided
for FY25 of $1,960 million
to $2,020 million.
The FY25 distribution is expected to be 57.0 cents
per security, an increase of 1.8% on FY24. The level
of growth in distribution reflects APA’s disciplined
approach to capital management which balances
distribution growth and funding our growth
opportunities while maintaining our BBB/Baa2
investment grade credit ratings.
As part of the energy supply chain, APA can
be affected by regulatory changes, economic
downturns and reductions in energy demand.
Given market conditions are not certain, APA’s
revenues will continue to be subject to regulatory
dynamics, customer recontracting and
investment decisions.
Looking ahead, APA is in a strong position to
continue executing its growth program, investing
for the long-term energy needs of its customers.
Refer to the Risks and Opportunities section of
this report for detail of APA Group’s approach
to managing material risks, opportunities and
emerging trends.
1
Underlying earnings before interest, tax, depreciation, and amortisation (‘EBITDA’) excludes recurring items arising from other activities, transactions that
are not directly attributable to the performance of APA Group’s business operations and significant items.
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Image: Badgingarra Wind Farm, WA
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
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ANNUAL REPORT 2024
Governance
Robust corporate governance policies and
practices facilitate the responsible creation
of long-term value for securityholders and
help us to meet the expectations of other
stakeholders.
Image: Mondarra Gas Storage and Processing Facility, WA
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APA Group Board
The Board of APA is responsible for the proper
management of APA’s business and affairs. The
Board’s primary role is to approve APA’s strategic
intent, provide leadership and effectively oversee
the implementation of strategy and a system
of risk management. To assist it in carrying out
its responsibilities, the Board has established
five standing committees, each with its own
charter approved by the Board. The Board has
also delegated responsibility for the day-to-day
management of APA to the Chief Executive
Officer and Managing Director and other members
of the Executive Leadership Team, subject to the
Delegations of Authority Policy, as amended by
the Board from time to time.
The specific responsibilities of the Board and each
standing committee are detailed in APA’s Corporate
Governance Statement. Copies of our Corporate
Governance Framework and related Deed Poll can
be found on our website at apa.com.au
OVERVIEW
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ANNUAL REPORT 2024
APA Group Board
Michael Fraser
BCom FCPA MAICD
Independent
Chairman
Appointed
1 September 2015
Appointed Chairman
27 October 2017
Michael Fraser has more than 35 years’ experience in the Australian
energy and infrastructure sectors.
Michael has an extensive background in all aspects of the Australian
energy market, including with the development of renewable energy
projects and related firming infrastructure. He has held various executive
positions at AGL Energy, including the role of Managing Director and
Chief Executive Officer for a period of seven years to February 2015.
Michael is a current Director of Orora Limited. He is a former Chairman
of the Clean Energy Council, Elgas Limited, ActewAGL and the NEMMCO
Participants Advisory Committee, as well as a former Director of Aurizon
Holdings Limited, Queensland Gas Company Limited, the Australian
Gas Association and the Energy Retailers Association of Australia.
Michael is Chair of the Nomination Committee and a member
of the Safety & Sustainability Committee.
Adam Watson
BBus FCPA GAICD
Chief Executive
Officer and
Managing Director
Appointed
19 December 2022
Adam Watson was appointed Chief Executive Officer and Managing
Director in December 2022. He joined APA Group in November 2020 as
Chief Financial Officer (CFO).
Adam has deep local and international experience in the industrial and
manufacturing sectors and in the development, delivery and operations
of critical infrastructure. He previously held senior executive roles at
Transurban, Australia’s largest infrastructure business, Melbourne Airport
and BlueScope Steel. Adam has extensive experience in public private
partnerships and his senior leadership roles have spanned finance,
commercial, strategy, corporate development and operations.
Adam is a Director of Energy Networks Australia and a member of the
Climate Leaders Coalition and Champions of Change.
James Fazzino
BEc (Hons) FCPA
Independent
Director
Appointed
21 February 2019
James Fazzino brings to the Board extensive local and international
experience in industrial, manufacturing and emerging energy markets.
James held the role of Managing Director and Chief Executive Officer
at Incitec Pivot Limited for eight years up until 2017. In this role he built
significant experience in sustainability and in the safe operation of
high hazard and high-risk facilities in remote locations. James also
has experience building strategic customer relationships and in the
delivery of world-scale hydrogen projects.
James is currently the Chair of Manufacturing Australia and Chair of
Rabobank Australia Limited and a Director of Qube Holdings Limited.
He is also a convenor of the Champions of Change Coalition, a group
of senior business executives focused on gender equality and inclusive
workplaces. He was formerly the Chairman of Tassal Group Limited
and Osteon Medical.
James is Chair of the Safety & Sustainability Committee, and a
member of the Audit & Finance Committee, Risk Management
Committee and the Nomination Committee.
Debra (Debbie)
Goodin
BEc FCA MAICD
Independent
Director
Appointed
1 September 2015
Debra (Debbie) Goodin brings to the Board experience in the
infrastructure, construction, engineering services and energy
sectors as both a senior executive and director.
Debbie has held senior finance, operations and corporate
development roles in both the private and public sectors, including as
a chief financial officer and chief operating officer. As an experienced
non-executive director, Debbie has local and global experience in
organisational leadership, financial management, operations and risk
management and as chairman and audit and risk committee, chair
of organisations in the infrastructure and service delivery sectors.
Debbie is currently Chairman of Atlas Arteria Limited and a Director
of Ansell Limited. She was formerly a Director of oOh!media Limited,
Senex Energy Limited, Ten Network Holdings Limited and Australia
Pacific Airports Corporation Limited.
Debbie is Chair of the Audit & Finance Committee and a member of
the Risk Management Committee and the Nomination Committee.
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GOVERNANCE (CONTINUED)
Nino Ficca
BEEL, GradDip
(Management),
Fellow (FIEAust), MAICD
Independent
Director
Appointed
1 September 2023
Nino Ficca brings to the Board over 40 years’ experience in the energy
and infrastructure sectors.
Nino has extensive senior executive experience in strategic and
operational roles, including in the National Electricity Market and
gas markets. He held the role of Managing Director of AusNet
Services Limited and its predecessors, SP AusNet and SPI Powernet,
from 2001–2019.
Nino is currently a Non-Executive Director of the Australian Energy
Market Operator and Transurban Queensland Group, Co-Founder
and Adviser of TasRex and a member of Deakin University Council.
He is a previous Director and Chair of Energy Networks Australia
and CIGRE Australia.
Nino is a member of the People & Remuneration Committee, the
Safety & Sustainability Committee and the Nomination Committee.
Peter Wasow
BCom GradDip
(Management)
Fellow (CPA Australia)
Independent
Director
Appointed
19 March 2018
Peter Wasow brings to the Board significant global experience in the
energy and resources sectors as both a senior executive and director.
He retired as Managing Director and Chief Executive Officer of
Alumina Limited in 2017 and previously held senior executive positions
at Santos Limited and BHP.
Peter was formerly a Non-Executive Director of Alcoa of Australia
Limited, AWA Brazil Limitada, AWAC LLC, Alumina Limited, Oz Minerals
Limited and the privately held GHD Group.
Peter is Chair of the People & Remuneration Committee, and a
member of the Audit & Finance Committee, Risk Management
Committee and the Nomination Committee.
Rhoda Phillippo
MSc
Telecommunications
Business GAICD
Independent
Director
Appointed
1 June 2020
Rhoda Phillippo brings to the Board over 30 years of local and
international experience in the telecommunications, technology
and energy sectors.
Rhoda has held senior executive roles in the telecommunications,
IT and energy sectors in the UK, NZ and Australia including as
Managing Director of Lumo Energy. She also has significant
experience in infrastructure mergers and acquisitions in Australia
and overseas.
Rhoda is currently a Non-Executive Director with Dexus Funds
Management Ltd and Waveconn Group Holdings Management
Pty Ltd.
She was formerly a Non-Executive Director and Chair of Kinetic IT Pty
Ltd, Non-Executive Director of Pacific Hydro, Datacom Group Limited,
Vocus Group Ltd and LINQ, the Chair of Snapper Services in New
Zealand and Deputy Chair of Kiwibank in New Zealand.
Rhoda is Chair of the Risk Management Committee and a member
of the Audit & Finance Committee, People & Remuneration
Committee and the Nomination Committee.
OVERVIEW
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ANNUAL REPORT 2024
APA Executive Leadership
Petrea Bradford
BEng GAICD
Group Executive
Operations
Petrea Bradford joined APA Group in August 2023 as Group Executive
Operations and is responsible for the operations of APA Group’s
infrastructure portfolio.
Petrea has 25 years’ experience in the oil and gas, renewables and
aviation sectors, including senior leadership roles in operations,
engineering, international development and strategy.
Petrea is responsible for the operations, maintenance, stay
in business capital projects and asset management of APA’s
infrastructure portfolio that spans electricity and gas transmission,
renewable power generation and gas distribution networks.
Amanda
Cheney
LLB (Hons) BArts FGIA
Group Executive
Legal and
Governance
Amanda Cheney is responsible for APA Group’s legal, company
secretariat, risk, compliance and insurance, and internal audit functions.
Amanda has over 20 years’ experience advising on major energy
and infrastructure projects in Australia and internationally. She joined
APA more than 10 years ago and has played a pivotal role in driving
transformation and growth in a range of projects across the business.
Prior to joining APA, Amanda worked as a lawyer in private practice
with leading law firms in Australia and Japan.
Ross Gersbach
BBus
Group Executive
Strategy and
Corporate
Development
Ross Gersbach is responsible for APA Group’s strategy, market
analytics, corporate development, and regulation and policy
functions.
Ross has over 25 years’ experience in senior commercial positions
across a range of energy-related sectors, covering infrastructure
investments, mergers and acquisitions, strategic development and
the management of energy infrastructure assets.
Ross joined APA in 2008 and has previously held several leadership
positions, including Chief Executive, Strategy and Corporate
Development.
Kevin Lester
BEng MIEAust CPEng
EngExec GAICD
Group Executive
Infrastructure
Delivery
Kevin Lester is responsible for APA Group’s Infrastructure Delivery
division, including the planning, approvals, engineering, procurement,
construction and commissioning of the company’s growth projects.
Kevin has over 35 years’ experience across the mining, resources and
energy sectors managing the delivery of major infrastructure projects.
Kevin joined APA over 10 years ago and is responsible for supporting
APA’s $22 billion portfolio of assets, developing and delivering growth
projects, which pursues innovation, technology and new energy
opportunities.
Elizabeth (Liz)
McNamara
BEc (Hons) PCSB
GAICD
Group Executive
Sustainability and
Corporate Affairs
Elizabeth (Liz) McNamara is responsible for APA Group’s sustainability
and corporate affairs functions.
Liz has 25 years’ experience in corporate affairs and leadership
roles across large public service and ASX-listed organisations,
including in energy, mining, investment banking and transport.
Liz joined APA in 2022 to lead the company’s Sustainability and
Corporate Affairs division and is responsible for the development
and execution of APA’s climate change and sustainability,
government and industry relations, communications and
brand functions.
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GOVERNANCE (CONTINUED)
Darren Rogers
BEng MEng MBA GAICD
Group Executive
Energy Solutions
Darren Rogers is responsible for APA Group’s customer, business
development and commercial functions, along with the company’s
work in future energy, including APA’s Pathfinder program.
Darren has experience across the energy sector working in large
and complex businesses, including in senior commercial, operations,
engineering and asset management roles.
Darren joined APA in 2017 and previously held the role of Group
Executive, Operations, responsible for the safe operations,
maintenance and asset management of the company’s
infrastructure portfolio, including gas and electricity transmission,
renewable power generation and gas distribution networks.
Garrick
Rollason
BA BCom MAppFin
Melb FCA (ICAEW)
Chief Financial
Officer
Garrick Rollason joined APA Group as Chief Financial Officer (CFO) in
October 2023.
Garrick is responsible for APA’s finance, taxation, treasury capital
markets, corporate finance, investor relations, technology, cyber
and physical security, procurement, real estate, and shared services
activities.
Garrick has more than 20 years’ experience in energy, infrastructure
and capital markets, including leadership roles in finance, insurance,
revenue management, investment, risk, governance, procurement,
and property.
Prior to APA Group, Garrick was CFO at Victoria Power Networks
(CitiPower & Powercor) and United Energy and previously a Director
in the Investment Banking Division at Credit Suisse.
Jane Thomas
BBus LLB (Hons)
MPsychol (org)
GAICD Fellow AHRI
Group Executive
People, Safety and
Culture
Jane Thomas is responsible for APA Group’s health, safety,
environment and heritage systems, and people and culture functions.
Jane has 30 years’ experience across industries spanning energy,
mining, banking and finance, retail and manufacturing.
Jane joined APA in 2021 and has driven a strengthened focus on
culture and business transformation across the organisation. Prior
to joining APA, she held senior leadership roles in major ASX-listed
organisations and multinational global companies, leading people,
health, safety, environment, community and legal functions.
Vin Vassallo
BEng (Hons)
Group Executive
Electricity
Transmission
Vin Vassallo is responsible for APA Group’s Electricity Transmission
division.
Vin has more than 30 years’ experience in leading the development
and delivery of infrastructure both in Australia and North America,
including under Private Public Partnerships, and managing business
teams in complex environments.
Vin joined APA in 2022 and is responsible for the development of new
business in electricity transmission with a focus on contracted and
regulated electricity transmission infrastructure.
OVERVIEW
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ANNUAL REPORT 2024
Corporate Governance Framework
overview
APA comprises two registered managed investment
schemes – APA Infrastructure Trust and APA Investment
Trust – the securities of which are stapled together
and traded on the ASX.
APA Group Limited is the responsible entity of
those trusts and is responsible for APA’s corporate
governance practices.
The Board and our Executive Leadership Team
are committed to conducting APA’s business in
accordance with high standards of corporate
governance. We believe robust corporate
governance policies and practices help us to
create long-term value for securityholders and
to meet the expectations of other stakeholders.
Due to our stapled trust structure, there are certain
governance and remuneration-related obligations
under the Corporations Act and the ASX Listing Rules
that do not apply to us.
In line with the Board’s commitment to high
standards of corporate governance, we have:
• adopted a Corporate Governance Framework
(1 July 2017)
• entered into a related Deed Poll
(adopted in 2004 and amended in 2011)
which together are designed to ensure that APA’s
corporate governance regime is consistent, as far
as is practicable, with the best practice procedures
of public-listed companies.
APA complies with each of the recommendations of
the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations
(Fourth Edition). The Board periodically reviews and
approves material corporate governance principles,
policies and procedures in line with market practice,
the expectations of our stakeholders and regulatory
developments.
Our 2024 Corporate Governance Statement
provides further information about our approach
to governance during FY24.
Our Corporate Governance Framework
Board
Executive Leadership Team
Chief Executive Officer and Managing Director
Audit and
Finance
Committee
Risk
Management
Committee
Safety and
Sustainability
Committee
People and
Remuneration
Committee
Nomination
Committee
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GOVERNANCE (CONTINUED)
Board skills matrix
In FY24, the Board adopted a graded reporting style
to the Board skills matrix whereby Directors assessed
their competency against each skill according to a
rating of High, Practiced and Awareness. The Board
skills matrix in APA’s 2024 Corporate Governance
Statement includes a full breakdown of Directorsʼ
skills and experience, and level of competency, in
areas of strategic importance to APA.
Key focus areas of the Board
The APA Board has actively overseen
management’s delivery against APA’s strategy
over FY24. Major activities and actions taken
by the Board are summarised below. Further
information on the activities of the Board and
Board Committees is disclosed within the
Corporate Governance Statement.
PEOPLE
• Continue to refine APA’s remuneration principles to align with market practice,
APA’s behaviours, purpose, strategic direction and risk appetite.
• Approved APA’s Gender Target Action Plan including gender related targets to be
included in senior executive KPIs.
• Continued to invest in leadership and talent development for people, building
capability, engaging our workforce and driving a high-performance culture through
our partnership with externally facilitated executive leadership programs.
INFRASTRUCTURE
AND BUSINESS
INTELLIGENCE
• Oversee the delivery of projects through regular reporting and Post-Investment
Reviews to ensure we continually learn and improve our approach to project
management and delivery outcomes.
• Visit APA sites including Basslink Interconnector in George Town, Tasmania and
APA’s newly acquired Pilbara Energy System assets in Port Hedland to observe site
operations, and interact with our team members to gain a better understanding
of key risks and opportunities, and challenges.
• Consider project approvals aligned to APA’s strategy to maximise long-term
securityholder value and become the partner of choice for our customers.
OUR CUSTOMERS
AND PARTNERS
• Engaged with customers, securityholders and other key stakeholders at industry events,
site visits and meetings.
• Received updates on customer and stakeholder engagement as well as reputation
and perception measurements.
ENVIRONMENT
• Approved APA’s 2023 Climate Report.
• Monitor progress against APA’s Climate Transition Plan through quarterly reporting
to the Safety & Sustainability Committee.
• Review quarterly climate updates on climate-related risks, opportunities and progress.
• Through the Audit & Finance Committee, received an update on APA’s readiness
for adoption of the mandatory climate reporting disclosures under the proposed
Australian Sustainability Reporting Standards – Disclosure of Climate-related
Financial Information Exposure Draft.
SOCIAL LICENCE
• Receive updates on our modern slavery risks across our operations and supply chain
including approving APA’s Modern Slavery Statement.
• Through the Safety & Sustainability Committee, oversaw progress against APA’s
commitments identified in our Reflect Reconciliation Action Plan.
FINANCIAL
• Oversaw the acquisition and capital raise for the Pilbara Energy System assets.
• Maintain a strong financial position and prudent approach to capital management
to ensure APA executes its strategy and maximises long-term securityholder value.
• Reviewed relevant accounting issues and policies, including Delegations of Authority
and Treasury Risk Management.
• Diversified sources of capital.
• Maintain investment grade credit rating with key rating agencies.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
73
APA GROUP
ANNUAL REPORT 2024
Directors’ Report
The Directors of APA Group Limited (the Responsible Entity) submit their report of APA Infrastructure Trust (APA
Infra) and its controlled entities (together, APA or Consolidated Entity) for the financial year ended 30 June 2024.
This report refers to the consolidated results of APA and APA Investment Trust (APA Invest).
Directors
The names of the Directors of the Responsible Entity during the year and since year end are:
Current Directors
First appointed
Michael Fraser
1 September 2015 and appointed Chairman 27 October 2017
Adam Watson
Appointed Chief Executive Officer and Managing Director 19 December 2022
James Fazzino
21 February 2019
Nino Ficca
1 September 2023
Debra (Debbie) Goodin
1 September 2015
Rhoda Phillippo
1 June 2020
Peter Wasow
19 March 2018
Shirley In’t Veld
19 March 2018. Retired on 28 March 2024
The Company Secretaries of the Responsible Entity during the year were Amanda Cheney and Bronwyn Weir.
Executive Leadership changes
• Chief Financial Officer (CFO): Garrick Rollason appointed as CFO effective 16 October 2023.
• Group Executive Operations: Petrea Bradford appointed as Group Executive of Operations effective
28 August 2023.
Subsequent events
On 28 August 2024, the Board announced the retirement of Debra Goodin and Peter Wasow and the appointment
of Samantha Lewis and David Lamont as Directors of APA. The appointment of Samantha Lewis and David Lamont
will be effective 1 October 2024. To ensure a smooth transition, Debra Goodin will remain on the Board until late
February 2025. Peter Wasow will retire at the conclusion of the Annual Meeting in October 2024.
Final distribution declaration
On 28 August 2024, the Directors declared a final distribution of 29.5 cents per security ($378 million) for APA Group,
an increase of 1.7%, or 0.5 cents per security over the previous corresponding period (30 June 2023: 29.0 cents).
This comprises a distribution of 28.48 cents per security from APA Infrastructure Trust and a distribution of 1.02
cents per security from APA Investment Trust.
The APA Infrastructure Trust distribution represents 28.48 cents per security partially franked profit distribution.
The APA Investment Trust distribution represents a 1.02 cent per security unfranked profit distribution.
The distribution is expected to be paid on 18 September 2024.
Other than noted above and as disclosed elsewhere in this report, in the interval between 30 June 2024 and
the date of this report, no matter or circumstance has significantly affected, or may significantly affect, the
Group’s operations, the results of those operations, or the Group’s state of affairs, in future financial years.
Principal activities
Information on the principal activities of the Group and its business strategies and prospects is set out
on page 50 of the Annual Report and forms part of this Directors’ Report.
Operating Financial Review
Information on the operations and financial position of the Group and its business strategies and prospects
is set out on pages 10–64 of the Annual Report and forms part of this Directors’ Report.
74
ANNUAL REPORT 2024
APA GROUP
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
Directors
Information on Directors and Company Secretary
For information relating to the qualifications and experience of Directors and Company Secretaries refer
to pages 68–69.
Directorships of other listed companies
Directorships of other listed companies held by Directors at any time in the three years immediately before
the end of the financial year:
Name
Company
Period of directorship
Michael Fraser
Aurizon Holdings Limited
February 2016 to February 2022
Orora Limited
Since April 2022
Adam Watson
—
—
James Fazzino
Tassal Group Limited
May 2020 to November 2022
Qube Holdings Limited
Since February 2024
Nino Ficca
—
—
Debra Goodin
Atlas Arteria Limited
Since September 2017, Chair since November 2020
Ansell Limited
Since December 2022
Rhoda Phillippo
Dexus Funds Management Limited
Since February 2023
Peter Wasow
Oz Minerals Limited
November 2017 to May 2023
Directors’ Meetings
Further information on the Board and Committees can be found in APA’s Corporate Governance Statement
which is available on our website.
During the year, 11 Board meetings, four Risk Management Committee meetings, four Audit and Finance
Committee meetings, five People and Remuneration Committee meetings, five Safety and Sustainability
Committee meetings, and six Nomination Committee meetings were held.
Board
People and
Remuneration
Committee
Audit and
Finance
Committee
Risk
Management
Committee
Safety and
Sustainability
Committee
Nomination
Committee
Directors
A
B
A
B
A
B
A
B
A
B
A
B
Michael Fraser
11
11
–
–
–
–
–
–
5
5
6
6
Adam Watson
11
11
–
–
–
–
–
–
–
–
–
–
James Fazzino
11
11
–
–
4
4
4
4
5
5
2
2
Nico Ficca1
8
8
3
3
–
–
–
–
4
4
2
2
Debra Goodin
11
9
–
–
4
4
4
4
1
1
6
6
Rhoda Phillippo
11
11
5
5
4
4
4
4
–
–
2
2
Peter Wasow
11
10
5
5
4
4
4
4
–
–
2
2
1
Nino Ficca appointed as a Director effective 1 September 2023
A Number of meetings held during the time the Director held office or was a member of the committee during the financial year.
B Number of meetings attended.
Directors’ security holdings
The aggregate number of APA securities held directly, indirectly or beneficially by Directors or their related
entities at 30 June 2024 is 328,285.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
75
APA GROUP
ANNUAL REPORT 2024
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
Directors’ relevant interests in APA securities
Name
Fully paid securities as at
1 July 2023
Securities acquired
Securities disposed
Fully paid securities as at
30 June 2024
Michael Fraser
102,942
3,547
–
106,489
Adam Watson
55,556
41,844
–
97,400
James Fazzino
30,751
3,547
–
34,298
Nino Ficca1
–
12,500
–
12,500
Debra Goodin
24,179
3,547
–
27,726
Rhoda Phillippo
17,960
2,365
–
20,325
Peter Wasow
26,000
3,547
–
29,547
Shirley In’t Veld2
25,000
–
–
25,000
1
Nino Ficca was appointed as a Director effective 1 September 2023 at which time he held nil securities.
2 Shirley In’t Veld retired as a Director 28 March 2024. Balance as at date of ceasing to be a Director.
As at 30 June 2024, Adam Watson held 595,930 performance rights granted under APA Group’s long-term
incentive plan. Each performance right is a right to receive one ordinary stapled security in APA subject
to satisfaction of certain performance hurdles. Further information can be found in section 9 of APA’s
Remuneration Report.
The Directors hold no other rights or options over APA securities. There are no contracts to which a Director is a
party or under which the Director is entitled to a benefit and that confer a right to call for or deliver APA securities.
Options granted
No options over unissued APA securities were granted during or since the end of the financial year. No unissued
APA securities were under option at the date of this report. No APA securities were issued during or since the
end of the financial year as a result of an option being exercised over unissued APA securities.
Indemnification of Officers
During the year, the Responsible Entity paid a premium on a contract insuring the Directors and Officers of any
APA Group entity against certain liability incurred in performing those roles. The contract of insurance prohibits
disclosure of the specific nature of the liability and the amount of the premium.
APA Group Limited, in its own capacity and as responsible entity of APA Infra and APA Invest, indemnifies
each Director and Company Secretary, and certain other executives, former executives and officers of the
Responsible Entity or any APA Group entity, under a range of deed polls and indemnity agreements, which have
been in place since 1 July 2000. The indemnity operates to the full extent allowed by law but only to the extent
not covered by insurance and is on terms the Board considers usual for arrangements of this type.
Under its constitution, APA Group Limited (in its personal capacity) indemnifies each person who is or has been
a Director, Company Secretary or Executive Officer of that Company.
The Responsible Entity has not otherwise, during or since the end of the financial year, indemnified or agreed
to indemnify an officer or external auditor of the Responsible Entity or any APA Group entity against a liability
incurred by such an officer or auditor.
76
ANNUAL REPORT 2024
APA GROUP
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
Remuneration Report
The Remuneration Report is set out on pages 78–97 of the Annual Report and forms part of this
Directors’ Report.
Auditors
Auditor’s independence
A copy of the independence declaration of the auditor, Deloitte Touche Tohmatsu, as required under section
307C of the Corporations Act 2001, is included on page 174.
Non-audit services
A description of any non-audit services provided during the financial year by the Auditor and the amounts
paid or payable to the Auditor for these services are set out in note 28 to the financial statements.
The Board has considered the non-audit services provided by the Auditor. In accordance with advice provided
by the Audit and Finance Committee (the Committee), the Board is satisfied that this provision is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001 and does not
compromise the auditor independence requirements of the Act.
The Board concluded that the non-audit services provided did not compromise the Auditor’s independence
because:
• All non-audit services were subject to APA’s corporate governance procedures with respect to such
matters and have been reviewed by the Committee to ensure they do not impact on the Auditor’s
impartiality and objectivity.
• The non-audit services provided did not undermine the general principles relating to auditor independence
as they did not involve reviewing or auditing the Auditor’s own work, acting in a management or decision-
making capacity for APA, acting as an advocate for APA or jointly sharing risks and rewards.
• The Auditor has provided a letter to the Committee with respect to the Auditor’s independence and the
Auditor’s independence declaration referred to above.
Information required for registered schemes
Fees paid to the Responsible Entity and its associates (including Directors and Secretaries of the
Responsible Entity, related bodies corporate and Directors and Secretaries of related bodies corporate)
out of APA scheme property during the financial year are disclosed in note 27 to the financial statements.
Except as disclosed in this report, neither the Responsible Entity nor any of its associates holds any
APA securities.
The number of APA securities issued during the financial year, and the number of APA securities on issue
at the end of the financial year, are disclosed in note 21 to the financial statements.
The value of APA’s assets at the end of the financial year is disclosed in the balance sheet in total assets.
The basis of valuation is disclosed in the notes to the financial statements.
Rounding of amounts
APA is an entity of the kind referred to in ASIC Corporations Instrument 2016/191. In accordance with that Class
Order, amounts in the Directors’ Report and the financial report are rounded to the nearest million dollars,
unless otherwise indicated.
Authorisation and signatures
The Directors’ Report is signed in accordance with a resolution of the Directors of the Responsible Entity made
pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the Directors
Michael Fraser
Adam Watson
Chairman
Chief Executive Officer and Managing Director
Sydney, 28 August 2024.
OVERVIEW
OPERATING AND
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
77
APA GROUP
ANNUAL REPORT 2024
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
Letter from the Chair of the People and Remuneration Committee
I am pleased to present the Remuneration Report of the APA Group (APA or the Company) for financial year 2024.
APA has delivered solid growth in earnings and distributions with new assets,including the Pilbara Energy System
(Pilbara) business, making a strong contribution. Underlying EBITDA increased by 9.7% to $1,893 million and our
distribution increased by 1.8% to 56.0 cents. Our Free Cash Flow (FCF) was flat (increasing by 0.3% to $1,073m), this is
reflective of higher interest costs to fund growth, higher tax payments and changes in working capital, partly
offset by improved net receipts and payments.
Key Management Personnel (KMP) changes in FY24
In FY24 we appointed Mr Garrick Rollason as Chief Financial Officer and Ms Petrea Bradford as Group Executive
(GE) Operations and Mr Darren Rogers moved into the GE Energy Solutions role.
FY24 executive remuneration framework and outcomes
There were no increases to Fixed Pay for the KMP roles in FY24. As foreshadowed in last year’s Remuneration
Report, the Short-Term Incentive (STI) opportunities for KMP roles (excluding the CEO/MD) were increased from a
target opportunity of 40% of Fixed Pay (maximum of 60%) to a target opportunity of 50% of Fixed Pay (maximum of
75%). This change was based on a review of market benchmarking data and despite increasing the STI
opportunity, our executive remuneration packages continue to place a higher weighting on the Long-Term
Incentive (LTI) component.
Reflecting FY24 financial and non-financial performance, the STI outcome was 62.7% of maximum (94.0% of
target) for the CEO/MD, and between 65.3% and 92.7% of maximum (98.0% and 139.0% of target) for other KMP roles.
The FY22 LTI was tested at the end of FY24. The relative Total Shareholder Return (TSR) performance metric was
not met, however the Return on Capital (ROC) metric was met. This resulted in 50% of the LTI becoming available
to vest according to APA’s LTI vesting schedule.
Remuneration report strike at the 2023 AGM
25.79% of APA securities that were voted at the 2023 AGM voted against the FY23 Remuneration Report resulting in
a “first strike”. We have engaged with securityholders to understand their concerns, and a summary of the
feedback and how we are addressing this feedback is set out in this report.
FY25 refinement to executive remuneration framework
There is one notable change being made to the framework for FY25 which relates to the LTI plan TSR metric. For
the FY25 LTI grant we are expanding the TSR peer group to include additional companies of a similar size that are
in similar or adjacent sectors. Further, we are aligning the vesting schedule to market practice (50% vesting at
50th percentile and 100% vesting at 75th percentile). The details of the FY25 LTI grant will be set out in our 2024
Notice of Meeting.
I hope you find this Remuneration Report informative. We look forward to your support and any questions at the
2024 AGM.
[Signature to be added]
Peter Wasow
People and Remuneration Committee Chair
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
78 APA GROUP ANNUAL REPORT 2024
Contents
1.
Remuneration strike response
80
2.
Individuals covered by the Remuneration Report
81
3.
Executive summary
82
4.
FY24 performance and executive incentive outcomes
84
5.
Executive remuneration policy and framework
89
6.
Executive KMP contracts
91
7.
Non-executive Director remuneration
92
8.
Remuneration governance
93
9.
Statutory tables
94
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
ANNUAL REPORT 2024 APA GROUP 79
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
1. Remuneration strike response
In the lead up to the 2023 AGM and during FY24, APA engaged with proxy advisors and securityholders to
understand the concerns that impacted voting at the 2023 AGM. This engagement highlighted two key issues
that contributed to the 25.79% of votes being cast against the FY23 Remuneration Report. These issues are
summarised below, including how APA is responding to the feedback.
Issue 1 – EBITDA targets for the STI plan
The core issue raised by some securityholders was a concern related to the appropriateness of the outcome of
the EBITDA component of the FY23 STI. The feedback was that the targets did not appear to be sufficiently
challenging relative to the prior year result and relative to FY23 market consensus.
APA’s actions in response:
In response to the feedback received the following actions have been taken:
•
The Board reviewed the FY24 EBITDA targets that had been set in June 2023 to ensure they were appropriately
challenging. This included consideration of management’s forecasts, year-on-year performance and market
expectations of APA (i.e. market consensus). As part of this work, the EBITDA targets and FCF targets for KMP
were increased primarily to incorporate the Pilbara Energy acquisition. Through this review, the Board was
satisfied that the FY24 targets were appropriately challenging.
•
The Remuneration Report disclosure of targets and outcomes has been enhanced. This extends beyond
EBITDA and has been enhanced across all the performance measures in the CEO/MD's scorecard.
Issue 2 – FY24 LTI grant TSR performance period and allocation price
A secondary issue that was raised by a smaller number of securityholders was feedback regarding the FY24 LTI
grant, which was concurrent with the timing of the 2023 capital raising to fund the Pilbara Energy acquisition.
Specifically, APA did not sufficiently explain the approach used for the FY24 LTI to set the Volume Weighted
Average Price (VWAP) for allocation and the TSR performance period which was different from prior years. Further,
there was a view expressed that the approach was not aligned with securityholders.
APA’s actions in response:
The matter itself was specific to the FY24 LTI grant due to the concurrent timing of the capital raising and is not an
on-going part of APA's approach to executive remuneration. The Board recognise that more disclosure could
have been provided by APA as to why this approach was adopted. In addition, and not specifically in response to
this concern, APA will provide more disclosure on LTI grants going forward.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
80 APA GROUP ANNUAL REPORT 2024
2. Individuals covered by the Remuneration Report
The Remuneration Report (the Report) for APA for FY24 has been prepared in accordance with Section 300A of the
Corporations Act 2001. The information provided in this Report has been audited, unless indicated otherwise, and
forms part of the Directors’ Report.
This Report includes the following KMP:
Name
Role
Term as KMP
Non-Executive Directors (NEDs)
Michael Fraser
Chair
Full year
James Fazzino
Director
Full year
Nino Ficca
Director
Part year from 1 September 2023
Debra (Debbie) Goodin
Director
Full year
Rhoda Phillippo
Director
Full year
Peter Wasow
Director
Full year
Former NEDs
Steven (Steve) Crane
Director
Part year until 15 September 2022
Shirley In’t Veld
Director
Part year until 28 March 2024
Executive KMP
Adam Watson
Chief Executive Officer and
Managing Director (CEO/MD)
Full year
Petrea Bradford
Group Executive (GE) Operations
Part year commencing 28 August 2023
Darren Rogers
GE Energy Solutions
Full year
(GE Strategy & Commercial until 15 August 2023 and GE
Energy Solutions commencing from 16 August 2023)
Garrick Rollason
Chief Financial Officer
Part year commencing 16 October 2023
Former Executive KMP
Robert Wheals
Former CEO/MD
Part year until 30 September 2022 when ceased
employment
Ross Gersbach
Former President North American
Development
Part year KMP until 22 August 2022 when changed roles into
a non-KMP role
Julian Peck
Former GE Strategy & Commercial
Part year KMP until 25 August 2022, and ceased employment
28 October 2022
The Board considered whether the Acting Chief Financial Officer (CFO) and Acting GE Operations that were in
place for the initial months of FY24 met the definition of KMP. Both roles have been excluded from disclosure in the
Remuneration Report on the basis that they were acting roles, and the CEO/MD and Board had authority and
increased oversight over their activities and decisions.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
ANNUAL REPORT 2024 APA GROUP 81
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
3. Executive summary
3.1. Remuneration strategy
The Board recognises the important role remuneration plays in supporting and implementing the achievement
of APA’s operational strategy over both the short and long-term. The key principles of the remuneration policy
and a summary of the executive remuneration framework are outlined below.
3.2. Executive remuneration snapshot
Fixed Pay
STI
LTI
Purpose
To be market competitive to attract,
motivate and retain individuals.
To reward executives for their
contribution to APA's annual budget
and performance targets, which will
enable the achievement of long-
term goals.
To focus executives on the
achievement of APA’s long-term
business strategy and to create value
and alignment with the experience of
securityholders.
FY24 approach
Executive KMP roles are
benchmarked against external
positions in companies with a
comparable market capitalisation,
operate in a similar industry and/or
are key competitors.
The STI opportunity for Executive
KMP (excluding the CEO/MD) was
increased from a target opportunity
of 40% of Fixed Pay (maximum of
60%) to a target opportunity of 50%
of Fixed Pay (maximum of 75%).
Subject to meeting the EBITDA
gateway, performance is assessed
against a scorecard of financial and
non-financial measures.
Each Executive KMP member has a
unique scorecard comprising Group
measures and role specific key
performance indicators (KPI’s), to
reflect Group and individual
accountabilities.
Performance Rights are assessed
against relative TSR (50%) and ROC
(50%) over a three year performance
period, with vested Performance Rights
converting to securities in equal
tranches over Years 3, 4 and 5
FY24
remuneration
outcomes
No remuneration increases were
applied to Executive KMP roles.
As the EBITDA gateway was met, the
STI pool was funded and outcomes
were:
•
CEO: 62.7% of maximum (94.0% of
target).
•
Other Executive KMP: ranged
from 65.3% and 92.7% of
maximum (98.0% and 139.0% of
target)
Section 4.2 provides details on
scorecard outcomes.
The FY22 LTI award was tested at 30
June 2024 resulting in an outcome of
50% vesting.
These rights will vest over 3 years with
1/3 vesting in August 2024, and the
remaining 2/3 vesting in equal tranches
in 2025 and 2026.
Section 4.5 provides details on results
against the relative TSR and ROC
measures.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
82 APA GROUP ANNUAL REPORT 2024
Minimum
security holding
requirement
APA’s minimum security holding requirement requires key executives to hold a material security holding in APA
Group. The requirement is to hold securities with a value of at least:
•
CEO/MD: 100% of fixed pay; and
•
Other Executive KMP: 50% of fixed pay.
Where the minimum security holding requirement has not been met, 1/3 of the STI payable will be deferred into
Restricted Securities to help build individual security holding levels.
Executive KMP have five years from the date of appointment to their role to accumulate the required minimum
value of securities.
Reward time
horizon
Pay Mix
The pay mix graph below displays the proportion of fixed vs variable remuneration (STI and LTI) when the incentives
are achieved at maximum (i.e. the STI at maximum, and the LTI calculated at face value assuming 100% vesting).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
ANNUAL REPORT 2024 APA GROUP 83
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
4. FY24 performance and executive incentive outcomes
4.1. Company performance
The table below summarises APA’s financial performance for the past 5 years.
Measure
FY24
FY23
FY22
FY21¹
FY20¹
Underlying EBITDA($m)²
1,893
1,725
1,692
1,629
1,650
Profit after tax including significant items ($m)³
998
287
260
1
309
Profit after tax excluding significant items($m)
119
287
240
279
309
Free cash flow per security (cents)
83.6
90.7
91.6
76.4
81.1
Distribution per security (cents)
56.0
55.0
53.0
51.0
50.0
Closing security price at 30 June ($)
7.99
9.69
11.27
8.90
11.13
CEO STI outcome (% of maximum)
62.7
78.9
66.1
66.4
37.0
Since listing in 2000, APA has paid an interim and full year distribution every year. Our distribution per security of
56.0 cents for FY24 represents a 1.8% increase on FY23.
1
Restated for the impact of the provision for payroll review.
2
Underlying EBITDA is EBITDA excluding non-recurring items arising from other activities, transactions not directly attributable to the performance of APA
Group's business operations and significant items. The Board considers this to best reflect the core earnings of APA. Refer to note 3 of the Financial
Statements.
3
Significant items in FY24 comprising of $1,051 million fair value remeasurement of APA's previously held 88.2% interest in Goldfields Gas Pipeline, $(72) million
Pilbara Energy System acquisition costs and $(144) million non-cash impairment of the Moomba Sydney Ethane Pipeline (MSEP).
4.2. FY24 STI scorecard outcomes – CEO/MD
The Board reviewed the CEO/MD’s performance considering his performance against the KPI’s in his STI scorecard.
The underlying EBITDA gateway was exceeded, and therefore the STI was available to be earned.
The Board assessed business performance against the STI scorecard and the CEO/MD’s individual contribution to
these results. As part of the assessment the Board considered the behaviours demonstrated in delivering against
the scorecard and any other performance throughout the year (not already reflected in the STI scorecard).
Based on the Board’s assessment, it deemed the scorecard outcome to be a holistic reflection of FY24
performance.
The table below summarises the outcomes against each KPI. Each KPI was assessed against a threshold (50%),
target (100%) and stretch (150%) outcome. The KPIs are a mix of quantitative (70% of KPIs) and qualitative (30% of
KPIs).
Financial
Underlying EBITDA (20% weighting)
EBITDA is our key financial metric to
assess the financial health of our
business. We aim to maintain financial
strength through solid EBITDA growth.
The EBITDA targets were originally
based on budget for the year and an
assessment of the potential risks and
opportunities to inform the range of
threshold and stretch.
The EBITDA targets were increased from
those that had been set at the outset of
the year, primarily to include the
business plan expected contribution to
FY24 EBITDA from the Pilbara Energy
acquisition (+$89m).
Underlying EBITDA outcome was $1,893 million (in line with
budget and guidance) against a threshold of $1,853 million,
a target of $1,891 million and a stretch of $1,929 million.
The EBITDA result is a 9.7% growth vs FY23.
Free Cash Flow (10% weighting)
A focus on strong free cash flow growth
ensures APA can continue to increase
distributions and fund stay in business
capital.
The FCF targets were originally based
on the budget for the year and an
assessment of the potential risks and
opportunities to inform the range of
threshold and stretch.
The FCF targets were increased during
the year to include the business plan
expected contribution to FY24 FCF from
the Pilbara Energy acquisition (+$17m).
This FCF target was flat to FY23 due to
higher interest costs to fund growth,
higher tax payments and changes to
working capital. partly offset by
improved net receipts and payments.
Free cash flow was $1,073 million against a threshold of
$1,019 million, a target of $1,073 million and a stretch of $1,116
million.
Measures and rationale
FY24 outcome
Further detail
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Deliver organic growth from deploying CAPEX (10% weighting)
Assesses our ability to grow revenue
streams organically. The metric is the
dollar value of Final Investment
Decisions on capex spend that meet
APA's required hurdle rates.
The target (and the threshold and
stretch) is based on the pipeline of
opportunities for the year ahead and
an assessment of their probabilities.
Actual outcome of $336 million of new approved capex
spend against a threshold of $175 million, a target of $325
million and a stretch of $475 million.
Execution of growth strategy (20% weighting)
KPIs focussed on key strategic
opportunities and capital investments
that support the execution of our
growth strategy. Each of these projects
have strong links to APA's financial
performance in terms of revenue
opportunities, customer growth,
efficiency and costs.
Strong foundational progress was made during the year
including the Pilbara acquisition and its related growth
opportunities. Whilst those growth opportunities continue
to progress they have not yet reached Final Investment
Decisions.
The New England Renewable Energy Zone (REZ) was a key
strategic growth focus and whilst good progress was
made in positioning APA to bid competitively including
establishing a partnership with EDF, the project has been
delayed due to NSW Government processes.
The integration of Basslink and the ERP implementation
have both progressed according to plan and the Grid
project that was also a key focus for FY24 is progressing as
expected.
Good progress continues with the broader growth pipeline
including Kurri Kurri and CS Energy Brigalow.
Considering all of the above and that some projects have
yet to reach Final Investment Decision this KPI was
assessed as threshold.
Non-financial
Deliver Climate Transition Plan Objectives (10% weighting)
Ensure progress against the FY24
priorities in the APA Climate Transition
Plan.
Note: Further information on APA’s
progress against the Climate Transition
Plan is set out on page 44, and in our
Climate Report which will be released in
September 2024.
Delivery against priorities set for FY24 were assessed by
the Board to be at the target level of expectation.
Progress during FY24 included reductions in emissions in
line with APA's commitments, reducing APA's energy
intensity, continued progress with CTP abatement
initiatives, pipeline leak repair and gas recovery, piloting
enhanced methane measurement technology and
operating targeted compressors more efficiently.
Health, Safety, Environment & Heritage (10% weighting)
To improve safety, wellbeing,
environmental and heritage
performance and lead a safety
focussed culture.
Performance is assessed against a combination of lead
and lag indicators.
The performance against the lead indicators (including
HSEH interactions and execution of the HSEH priorities), was
strong and assessed between Target and Stretch.
The performance against the lag indicators showed
strong progress on reducing overdue compliance orders,
but there were three Tier 1 process safety incidents in the
gas transmission business and two actual serious harm
incidents.
This resulted in an overall assessment of below target.
Culture (10% weighting)
Support the culture of APA through our
approach to Inclusion & Diversity, our
employee engagement and
robustness of succession planning
Performance is assessed against a combination of culture
related metrics.
•
Improvements against the majority of our gender
representation targets continued in FY24 with total
employee representation of women rising to 32.4%,
senior leader representation rising to 39.2%, and
extended leadership representation rising to 37.7%.
However, some of these fell slightly short of our
aspiration for the year.
•
The 2023 culture and engagement survey score was
72%, which was an increase on 2022 and ahead of our
aspiration for the year.
•
Performance against the talent retention and
succession metrics was also strong and ahead of our
targets for the year.
Reputation (10% weighting)
Maintain APA's reputation across
internal and external stakeholders.
This is measured using Reptrack and
Newgate surveys.
Reputation is measured against the Reptrack Priority
Stakeholder Score, the Reptrack General Score vs peers,
and the Newgate Priority Stakeholder Trust Score. Each of
these scores exceeded our targets for the year.
Scorecard outcome
62.7% of Maximum
94.0% of Target
Measures and rationale
FY24 outcome
Further detail
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4.3. FY24 STI performance scorecard outcomes – Other Executive KMP
Detailed below are the individual scorecard outcomes for Other Executive KMP. A number of group-wide KPIs
(outlined in the CEO/ MD’s STI scorecard above) apply as well as individual-specific KPIs, to reflect the nature of
their role and contribution to APA’s business outcomes.
Other Executive KMP outcomes ranged from 65.3% to 92.7% of maximum (98.0% to 139.0% of target).
Commentary on Ms Petrea Bradford’s performance
Overall outcome of 103.0% of target, with key contributions being:
•
The integration of the Pilbara and Basslink assets into APA's operations portfolio; and
•
Driving strong operational performance including the management of change, reduction in overdue compliance work orders and
cost management.
Commentary on Mr Darren Rogers’ performance
Overall outcome of 139.0% of target, with key contributions being:
•
Strong results in our re-contracting and securing organic growth opportunities during FY24, including Kurri Kurri; and
•
Leading the acquisition and the successful integration of the Pilbara Energy business into APA.
Commentary on Mr Garrick Rollason’s performance
Overall outcome of 98.0% of target, with key contributions being:
•
The successful debt re-financing during FY24; and
•
The delivery of the ERP project on time and budget.
4.4. STI outcomes
The table below provides an overview of the STI outcomes for FY24 for current KMP, delivered in a mix of cash and
restricted securities.
STI earned
STI forfeited
Executive KMP
Cash $
Restricted
securities
(deferred) $
Total $
% of target
% of maximum
Foregone $
% of maximum
A Watson
902,400
—
902,400
94.0 %
62.7 %
537,600
37.3 %
P Bradford⁴
241,253
120,626
361,879
103.0 %
68.7 %
165,129
31.3 %
D Rogers
639,400
—
639,400
139.0 %
92.7 %
50,600
7.3 %
G Rollason⁵
212,672
106,336
319,009
98.0 %
65.3 %
169,270
34.7 %
4 Commenced employment on 28 August 2023.
5
Commenced employment on 16 October 2023.
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4.5. LTI outcomes
Performance measurement approach
APA’s LTI is designed to focus Executive KMP on the achievement of APA’s long-term business strategy and to
create alignment with the experience of securityholders. The LTI has two performance measures:
•
50% is subject to a relative TSR performance metric; and
•
50% is subject to a ROC performance metric.
Vesting of the LTI is dependent on achieving the above performance metrics with the Board having overarching
discretion to ensure vesting outcomes are aligned to overall APA performance and the securityholder
experience.
FY22 LTI testing and vesting
Performance period is from 1 July 2021 to 30 June 2024.
TSR (50% weighting)
•
APA’s TSR is measured against a group of ASX 100 bespoke peers in the infrastructure and gas sectors.
•
As measured over the 3-years to 30 June 2024, APA’s TSR performance was below the median relative to the peer group.
•
0% of the performance rights linked to the TSR hurdle vested.
Threshold
Maximum
Actual
Vesting outcome
50th percentile
82.5th percentile
26.67th percentile
0%
ROC (50% weighting)
•
The ROC metric measures APA Group’s operating earnings relative to the value of operating assets over a three-year performance
period. A target range (a threshold and a maximum) is set based on the APA business plan. Refer to section 5.3 of this report for
further detail of the ROC definition.
•
APA’s approach is to set and disclose ROC targets at the beginning of the performance period based on the outlook for the
business at that time. If there are any significant changes to the outlook related to acquisitions or divestment transactions then as
a matter of process APA adjusts the targets to account for these. This ensures:
▪
A like-for-like comparison of targets with actual performance (which includes the impact of transactions), and
▪
Management is held to account for delivering the outcomes intended as part of any transaction and are not materially
advantaged or disadvantaged for pursuing or not pursuing a transaction.
•
Typically incorporating a transaction into the ROC targets will reduce the targets as a non-depreciated asset is being added to the
calculation. Conversely removing an assumed transaction that didn’t proceed will typically increase the ROC targets.
•
APA’s approach resulted in the ROC targets for the FY20 and FY21 LTI plans being increased as no transaction in the United States
was pursued (which had been assumed in the targets).
▪
For the FY20 LTI this resulted in the vesting outcome being approx 31% lower than if the targets had not been adjusted.
▪
For the FY21 LTI this resulted in no change to vesting.
•
For the FY22 LTI, the original ROC targets set were 11.2% (threshold) and 11.5% (maximum). This was based on an assumption that an
acquisition would be executed in the United States and were set before the Basslink and Pilbara transactions were known.
Consistent with the approach in prior years, the Board adjusted the FY22 LTI targets to remove the US transaction which didn’t
proceed and include the Basslink and Pilbara transactions to ensure management are held to account for the performance of
those acquisitions in line with the investment case and there is no material advantage or disadvantage. Overall, this lowered the
ROC target as the impact of Pilbara and Basslink investment case on ROC targets was greater than the removal of the assumed
United States transaction. However, this did not result in any change to the vesting outcome as illustrated in the table below. The
actual result of 11.63% was higher than both the original and adjusted target
Threshold
Maximum
Actual
Vesting outcome
Original targets
11.2%
11.5%
11.63%
100%
Adjusted targets⁶
10.8%
11.1%
Overall 50% percent of the FY22 LTI vested to the CEO & MD and other participants
FY23 LTI due to be tested at the end of FY25
The FY23 LTI plan is due to be performance tested at 30 June 2025.
The ROC targets for the FY23 LTI do not include any assumption about a US transaction (unlike prior grants) and
they were set prior to the Basslink and Pilbara Energy transactions being concluded.
Consistent with the FY20, FY21 and FY22 LTI plans the Board’s intention is to apply the same approach to those
targets and adjust for the Basslink and Pilbara Energy acquisitions and any other significant changes related to
transaction activity if any.
6 Adjusted to remove the assumed United States transaction that did not occur (increasing the targets), and to include the Basslink and Pilbara transactions
(lowering the targets given the proportionally higher asset base for the return generated compared with the existing asset base).
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4.6. FY24 actual remuneration
The actual remuneration detailed in the table below differs from the statutory remuneration disclosed in section
8 which is subject to requirements under the Accounting Standards and Corporations Act.
The following is included in the table:
•
Fixed pay and Cash STI – as received which relates to FY24.
•
STI deferred equity released – awards from prior years which have met time restrictions as at 30 June 2024,
but will be released in August 2024 following announcement of APA's FY24 financial results.
•
LTI equity vested & released – FY20 LTI (Tranche 3), FY21 LTI (Tranche 2) and FY22 LTI (Tranche 1) that have met
performance and time restrictions as at 30 June 2024, but will vest in August 2024 following announcement of
APA's FY24 financial results.
Given this is not a statutory disclosure, only current KMP are included.
Executive KMP
Fixed pay $⁷
Cash STI $⁸
STI deferred equity
released $⁹
LTI equity vested &
released $¹⁰
Total $
A Watson
1,600,000
902,400
—
326,921
2,829,321
P Bradford¹¹
669,896
241,253
—
—
911,149
D Rogers
920,000
639,400
96,983
352,585
2,008,968
G Rollason¹²
656,189
212,672
—
—
868,861
7
Fixed pay is inclusive of cash salary, employer superannuation, and any salary sacrifice items (including any relevant fringe benefits tax).
8 Cash STI refers to the cash portion of the STI, relating to performance in FY24. Payment will be made in September 2024.
9
STI deferred equity released is based on a VWAP of $8.3541 (being the 20 trading days leading up to 30 June 2024).
10 Relates to rights vesting and converting to securities for Tranche 3 of the FY20 Performance Rights plan, Tranche 2 of FY21 Performance Rights plan and
Tranche 1 of the FY22 Performance Rights plan. Valued based on a VWAP of $8.3541 (being the 20 trading days leading up to 30 June 2024).
11
Commenced employment on 28 August 2023.
12 Commenced employment on 16 October 2023.
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5. Executive remuneration policy and framework
APA’s remuneration objective is to reward executives at the median of observed total remuneration for selected
comparable companies when performance is at target and up to the 75th percentile for above target
performance.
5.1. Fixed pay
Fixed pay includes base salary, employer superannuation, and any salary sacrifice items (including any relevant
fringe benefits tax) such as car parking, motor vehicles and superannuation. The level of fixed pay is based on
multiple factors, including the skills and experience of the individual, external market positioning and the size and
complexity of the role.
5.2. STI plan
In addition to the information covered in section 3, further detail on the operation of the FY24 STI plan is provided
below:
Feature
Description
Target
opportunity
CEO/MD: 60% of fixed pay
Other Executive KMP: 50% of fixed pay
Maximum
Opportunity
CEO/MD: 90% of fixed pay
Other Executive KMP: 75% of fixed pay
Performance
period
One year.
Delivery
Cash (2/3) paid at the end of FY24 (in September 2024) and deferred equity (1/3) delivered as Restricted Securities
which vest after 2-years (in August 2026) where the minimum security holding requirement is not met.
Allocation
methodology of
deferred STI
Restricted Securities are allocated at face value using a volume weighted average price (VWAP) of the 20 trading
days leading up to (but not including) the day APA releases its full year financial results.
5.3. LTI plan
In addition to the information covered in section 3, further detail on the operation of the FY24 LTI plan is provided
below:
Opportunity
CEO/MD: 150% of fixed pay
Other Executive KMP: 125% of fixed pay
Performance
period
ROC: Three years (FY24, FY25 and FY26)
TSR: 24 August 2023 to 30 June 2026
Grant date
6 November 2023
Delivery
Performance Rights are tested at the end of year three. Vested Performance Rights convert to securities and are
released from restrictions in equal tranches at the end of year three, four and five. Performance Rights which do not
vest are forfeited automatically unless the Board determines otherwise.
Allocation
methodology
Performance Rights were allocated at face value using a VWAP of the 5 trading days from 24 August 2023 to 30
August 2023. No amount is payable on the grant or vesting of Performance Rights.
Performance
measures
Relative TSR (50%)
Relative TSR measures the Group’s TSR over a three-year period against a group of ASX 100 bespoke peers in the
infrastructure and gas sectors. Relative TSR has been selected to align executives with the experience of security
holders and to ensure executives are only rewarded for outperformance against our peers.
The peer group comprises of the following companies:
•
AGL Energy
•
Atlas Arteria
•
Aurizon Holdings
•
Dexus
•
Goodman Group
•
GPT Group
•
Mirvac
•
Qube Holdings
•
Scentre Group
•
Stockland
•
Telstra
•
TPG Telecom
•
Transurban
•
Vicinity Centres
The Board retains discretion to vary the relative TSR peer group at the end of the performance period to reflect de-
listings, mergers and other corporate actions.
The relative TSR component vests in accordance with the following scale:
Feature
Description
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Hurdle
Vesting outcome
Below 50th percentile
Nil
At 50th percentile
50%
Between 50th and 82.5th percentile
Straight line pro-rata vesting between 50% and 100%
At 82.5th percentile and above
100%
Return on capital (50%)
The ROC metric measures APA Group’s operating earnings achieved relative to value of operating assets over a
three-year performance period. It has been selected to ensure management balances earnings improvements
with prudent capital management.
ROC is calculated as an average over three years by dividing underlying EBITDA by Funds Employed (FE). FE is
determined by adjusting total assets per the balance sheet by excluding capital work in progress, excluding current
and non-current portion of other financial assets (excluding redeemable preference shares), including working
capital relating to assets under construction and normalised cash balances. Underlying EBITDA is the average for
the current and following two financial years and FE is the average of seven data points as at the June and
December half year ends for the current financial year and following two financial years, including the opening
balance for the first year.
Calculation of ROC will be determined by the Board and the Board retains discretion to adjust EBITDA and FE to
account for extraordinary items, acquisitions, organisational changes or otherwise ensure that the vesting
outcomes are appropriate.
The ROC component vests in accordance with the following scale (which incorporate the Pilbara Energy
acquisition):
Hurdle
Vesting outcome
Less than 11.1%
0%
Equal to 11.1%
33%
Greater than 11.1% up to 11.4%
Straight line pro-rata vesting between 33% and 100%
At or above 11.4%
100%
Retesting
Re-testing of LTI awards is not permitted.
Feature
Description
5.4. Additional provisions
The table below summarises additional provisions as they relate to the remuneration of Executive KMP for FY24.
Provision
STI
LTI
Malus / Clawback
The Board in its discretion may determine that some, or all, of an Executive KMP's STI and/or LTI awards be forfeited
(malus) or recouped (clawback) in the event of misconduct or of a material misstatement in the year-end financial
statements, in accordance with provisions that are included within the STI and LTI plans and offer documentation to
Executive KMP’s.
Distribution and
voting rights
Restricted Securities carry the same distribution and
voting rights as ordinary securities.
Unvested Performance Rights do not carry distribution and
voting rights.
Cessation of
employment
Subject to Board discretion:
•
Where the participant is terminated summarily or
resigns having breached their terms of
employment, they will not be eligible for a STI
payment for the relevant financial year.
•
Where employment ceases for any other reason, a
pro-rated STI award may be paid based on the
performance period served and restricted
securities awarded in prior years remain on-foot
and are released in the ordinary course.
Subject to Board discretion:
•
Where the participant is terminated summarily or
resigns having breached their terms of employment, all
Performance Rights will automatically lapse.
•
Where employment ceases for any other reason,
unvested Performance Rights will remain on-foot
subject to the original terms of grant and tested against
performance metrics in the ordinary course.
Change of control
Subject to Board discretion, if a change of control
occurs, an STI award will be paid out based on the
proportion of the period that has passed at the time of
change of control to the extent to which performance
conditions have been met.
The Board has absolute discretion to determine
whether any or all Restricted Securities are released
from restrictions. Where the Board does not make a
determination, all Restricted Securities will be released
from dealing restrictions.
The Board has absolute discretion to determine whether
any or all Performance Rights vest. Where the Board does
not make a determination, all Performance Rights will vest.
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5.5. Executive KMP minimum security holding requirement
The minimum security holding requirement aligns the interests of Executive KMP and securityholders.
Within five years from the date of appointment to their role:
•
The CEO/MD is required to hold securities to the value of 100% of Fixed Pay; and
•
Other Executive KMP are required to hold securities to the value of 50% of Fixed Pay.
Mr Adam Watson and Mr Darren Rogers have met the minimum security holding requirement.
Mr Garrick Rollason and Ms Petrea Bradford are yet to meet the requirement. However, both remain within the
five-year timeframe allowed to meet the requirement.
Details of Executive KMP security holdings may be found in Section 8.
6. Executive KMP contracts
Remuneration arrangements for Executive KMP are formalised in individual employment agreements.
Termination arrangements, in addition to normal statutory entitlements, are summarised in the table below.
Total Fixed Pay
(as at 30 June 2024)
Notice period
A Watson
$1,600,000
•
9 months’ notice by either APA or CEO/MD.
•
APA may provide payment in lieu of notice.
•
No notice is required by APA for termination for cause.
P Bradford
$835,000
•
6 months’ notice by either APA or the individual.
•
APA may provide payment in lieu of notice.
•
No notice is required by APA for termination for cause.
D Rogers
$920,000
G Rollason
$920,000
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7. Non-executive Director remuneration
7.1. Determination of NED fees
The Board seeks to attract and retain high calibre NEDs who are equipped with the diverse skills needed to
oversee all functions of APA in an increasingly complex environment. NED fees comprise of:
•
A Board fee; and
•
An additional fee for serving as a Chair or member of a Board Committee.
NED fees are inclusive of superannuation contributions which are provided in accordance with the statutory
requirements under the Superannuation Guarantee Act. NEDs do not receive incentive payments nor participate
in incentive plans.
The Board Chair does not receive additional fees for his membership on other Committees.
One-off ‘per diems’ may be paid in exceptional circumstances. No per-diem payments were made in FY24.
7.2. Aggregate NED fee pool
The aggregate NED fee pool as at 30 June 2024 was $2,500,000.
7.3. Director fees
During FY24 the Board did not make any changes to director fees.
The following table sets out the FY24 NED fee policy.
Chair
$
Member
$
Board
513,735
182,806
Audit & Finance Committee
40,883
20,391
Risk Management Committee
40,883
20,391
Safety & Sustainability Committee
40,883
20,391
People & Remuneration Committee
40,833
20,391
Nomination Committee
Nil
Nil
7.4. NED minimum security holding requirement
The minimum security holding requirement helps to ensure the alignment of the interests of NEDs and
securityholders.
NEDs are expected to hold securities to a value not less than their annual Board fee (before tax and excluding
fees payable for their membership on Committees). This level of security holding is to be held throughout their
tenure as a NED and the requirement is to be met within five years of their appointment.
As at 30 June 2024, all NEDs met this requirement other than Mr Nino Ficca who joined the Board in 2023 and is
within the timeframe available to accumulate the holding. Details of NED security holdings may be found in
section 8.
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8. Remuneration governance
The diagram below outlines the remuneration governance framework in place at APA.
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9. Statutory tables
The following tables outline the amounts recognised as an expense in the respective years, determined in
accordance with the relevant accounting standards.
9.1. Executive KMP statutory remuneration
Short-Term Employment Benefits
Post
Employment
Security-based
payments
Salary¹³
Awarded
Cash STI¹⁴ STI Deferral
Termination
¹⁵
Other
Superannuat
ion
Legacy LTI
Plan
Equity
settled
Security
Based¹⁶
Total
A Watson
2024
1,572,601
902,400
—
—
—
27,399
—
900,215
3,402,615
2023¹⁷
1,441,355
765,377
201,359
—
—
25,292
—
608,563
3,041,946
P Bradford
2024¹⁸
642,497
241,253
120,626
—
—
27,399
—
154,142
1,185,917
D Rogers
2024¹⁹
892,601
639,400
—
—
—
27,399
92,405
578,435 2,230,240
2023
883,120
415,576
—
—
—
25,292
59,189
480,030
1,863,207
G Rollason
2024²⁰
635,640
212,672
106,336
—
—
20,549
—
169,834
1,145,031
Former Executive KMP
R Wheals²¹
2023
412,427
253,361
—
1,645,153
—
12,646
104,077
2,120,475
4,548,139
R Gersbach²²
2023
152,437
63,747
—
—
36,778
3,673
16,726
76,953
350,314
J Peck²³
2023
136,213
58,755
—
62,763
—
5,951
—
—
263,682
Total
Remuneration
2024
3,743,339
1,995,725
226,962
—
—
102,746
92,405
1,802,626 7,963,803
2023
3,025,552
1,556,816
201,359
1,707,916
36,778
72,854
179,992
3,286,021 10,067,288
13 Salary includes both fixed pay and any salary sacrificed items, such as motor vehicles or car parking (including any applicable fringe benefits tax). It is
exclusive of any superannuation contributions.
14 Awarded STI relates to that element of remuneration which is earned by the Executive KMP in respect of performance during the financial year (or for the
relevant period that they were KMP as set out in the Report).
15 Reflects the payment in lieu of notice and other statutory entitlements required to be paid on termination.
16 For equity settled security-based payments, an expense is recognised equal to the portion of service received based on the fair value of the equity
instrument at grant date.
17 Remuneration reflects KMP position moves during the period, including time in CFO, Acting CEO/MD, and CEO/MD positions.
18 Commenced employment on 28 August 2023.
19 Legacy LTI Plan amount represents the outcome which vested as at 30 June 2023 and was paid in August 2023, as disclosed in the 2023 Remuneration
Report.
20 Commenced employment on 16 October 2023.
21 Ceased employment on 30 September 2022.
22 Ceased as KMP on 22 August 2022.
23 Ceased as KMP on 25 August 2022.
.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
94 APA GROUP ANNUAL REPORT 2024
9.2. NED statutory remuneration disclosure
Short-term
employment
benefits
Post-employment
benefits
Total $
Financial Year
Fees $
Superannuation $
M Fraser
FY24
486,336
27,399
513,735
FY23
488,443
25,292
513,735
J Fazzino
FY24
238,263
26,209
264,472
FY23
230,276
24,179
254,455
N Ficca²⁴
FY24
167,859
18,465
186,324
D Goodin
FY24
222,954
24,525
247,479
FY23
239,191
25,115
264,306
R Phillippo
FY24
238,263
26,209
264,472
FY23
229,256
24,072
253,328
P Wasow
FY24
238,263
26,209
264,472
FY23
235,377
24,715
260,092
Former NEDs
S Crane²⁵
FY23
43,868
4,512
48,380
S Int ‘Veld²⁶
FY24
150,274
16,530
166,804
FY23
207,490
21,786
229,276
Total
FY24
1,742,212
165,545
1,907,758
FY23
1,673,901
149,671
1,823,572
24 Commenced in role on 1 September 2023.
25 Ceased in role on 15 September 2022.
26 Ceased in role on 28 March 2024.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
ANNUAL REPORT 2024 APA GROUP 95
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
9.3. Outstanding awards under current LTI plan
The following table sets out the movements in the number of Performance Rights granted to executives as
remuneration, and any amounts vested or forfeited during the financial year.
Opening
balance
at 1 July 2023
Performance
Rights
granted in
FY24 as
remuneration
Grant date
Vested in
FY24
Forfeited /
lapsed or
other change
in FY24
Closing
balance
on 30 June
2024
Fair value of
Performance
Rights at
grant date $
A Watson
FY21 LTI
106,426
–
12/11/2020
17,738
53,213
35,475
682,723
FY22 LTI
128,367
–
11/12/2020
–
–
128,367
683,340
FY23 LTI
162,462
–
12/16/2022
–
–
162,462
1,050,588
FY24 LTI
–
269,626
11/6/2023
–
–
269,626
1,406,100
P Bradford
FY24 LTI
–
117,259
11/6/2023
–
–
117,259
611,506
D Rogers
FY20 LTI
24,476
–
12/13/2019
12,238
–
12,238
342,895
FY21 LTI
71,698
–
11/12/2020
11,950
35,849
23,899
459,943
FY22 LTI
108,098
–
11/10/2021
–
–
108,098
575,442
FY23 LTI
100,990
–
12/16/2022
–
–
100,990
653,069
FY24 LTI
–
129,196
11/6/2023
–
–
129,196
673,757
G Rollason
FY24 LTI
–
129,196
11/6/2023
–
–
129,196
673,757
The fair value of performance rights in the above is calculated based on fair value, grant date, vesting date and
individual vesting conditions for the relative TSR and ROC metric vesting conditions as set out in the table below.
Grant year
TSR
ROC
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
FY20
Fair value
$4.47
$4.27
$4.08
$9.57
$9.15
$8.75
Grant date
13/12/2019
13/12/2019
Vesting date
August 2022
August 2023
August 2024
August 2022
August 2023
August 2024
FY21
Fair value
$4.17
$3.97
$3.79
$9.28
$8.85
$8.43
Grant date
12/11/2020
12/11/2020
Vesting date
August 2023
August 2024
August 2025
August 2023
August 2024
August 2025
FY22
Fair value
$3.58
$3.40
$3.23
$7.62
$7.24
$6.87
Grant date
10/11/2021
10/11/2021
Vesting date
August 2024
August 2025
August 2026
August 2024
August 2025
August 2026
FY23
Fair value
$4.19
$3.98
$3.79
$9.40
$8.94
$8.50
Grant date
16/12/2022
16/12/2022
Vesting date
August 2025
August 2026
August 2027
August 2025
August 2026
August 2027
FY24
Fair value
$3.88
$3.66
$3.46
$7.14
$6.76
$6.39
Grant date
3/11/2023
3/11/2023
Vesting date
August 2026
August 2027
August 2028
August 2026
August 2027
August 2028
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
96 APA GROUP ANNUAL REPORT 2024
9.4. Sign-on equity awards
The following table sets out the sign on equity awards made to Executive KMP. These awards were to
compensate for equity and incentives forgone by resigning from their previous employers. No performance
conditions were attached to these sign-on awards.
Grant Date
Number of rights
Vesting date
P Bradford
02/10/2023
49,154
28/08/2024
G Rollason
03/11/2023
22,896
16/10/2024
9.5. Security holdings
The following table sets out APA Group stapled securities held by KMP or their closely related parties, directly,
indirectly or beneficially.
Year ended 30 June 2024
Opening Balance
at 1 July 2023
Securities
Acquired
Securities
Disposed
Closing Balance
at 30 June 2024
Meets minimum
security holding
requirement
as at 30 June 2024
NEDS
M Fraser
102,942
3,547
–
106,489
Yes
J Fazzino
30,751
3,547
–
34,298
Yes
N Ficca²⁷
–
12,500
–
12,500
No
D Goodin
24,179
3,547
–
27,726
Yes
R Phillippo
17,960
2,365
–
20,325
Yes
P Wasow
26,000
3,547
–
29,547
Yes
Former NEDs
S In’t Veld²⁸
25,000
–
–
25,000
N/A
Executive KMP
A Watson
55,556
41,844
—
97,400
Yes
P Bradford²⁹
–
–
–
–
No
D Rogers
49,597
27,735
–
77,332
Yes
G Rollason³⁰
–
–
–
–
No
27 Commenced in role on 1 September 2023 hence opening balance is shown as at this date. Still within 3 year period to achieve MSR requirement of 100% of
base fee.
28 Ceased in role on 28 March 2024 hence closing balance is shown as at this date.
29 Commenced employment on 28 August 2023 hence opening balance is shown as at this date. Still within 5 year period to achieve MSR requirement of 50% of
TFR
30 Commenced employment on 16 October 2023 hence opening balance is shown as at this date. Still within 5 year period to achieve MSR requirement of 50%
of TFR.
9.6. Loans to KMP and other transaction of KMP and personally related entities
During FY24, there were no transaction between KMP or their close family members and APA Group other than as
described in this report.
There are no loans with any KMP.
A number of KMP have control or joint control of other entities (outside APA Group). During the year, there have
been no transactions between those entities and APA Group, and no amounts were owed by or to APA Group
from those entities.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
ANNUAL REPORT 2024 APA GROUP 97
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
2024
2023
Note
$m
$m
Revenue
3,039
2,890
Share of net profits of associates and joint ventures using the equity method
25
23
4
3,064
2,913
Asset operation and management expenses
(253)
(227)
Depreciation and amortisation expenses
5
(919)
(750)
Other operating costs – pass-through
5
(473)
(512)
Finance costs
5
(627)
(479)
Employee benefit expense
5
(470)
(398)
Other income/(expenses) ¹
912
(82)
Fair value (losses)/gains on contracts for difference
19
(17)
12
Impairment of property, plant and equipment ²
2
(144)
–
Profit before tax
1,073
477
Income tax expense
6
(75)
(190)
Profit for the year
998
287
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit plan
7
5
Income tax relating to items that will not be reclassified subsequently
(2)
(1)
5
4
Items that may be reclassified subsequently to profit or loss:
Transfer of gain on cash flow hedges to profit or loss
262
167
Loss on cash flow hedges taken to equity
(45)
(705)
(Loss)/gain on associate hedges taken to equity
(9)
4
Income tax relating to items that may be reclassified subsequently
(62)
160
146
(374)
Other comprehensive income/(loss), net of income tax
151
(370)
Total comprehensive income/(loss) for the year
1,149
(83)
Profit attributable to:
Unitholders of the parent
978
263
Non-controlling interest – APA Investment Trust unitholders
20
24
APA stapled securityholders
998
287
Total comprehensive income attributable to:
Unitholders of the parent
1,129
(107)
Non-controlling interest – APA Investment Trust unitholders
20
24
APA stapled securityholders
1,149
(83)
Earnings per security
2024
2023
Basic and diluted (cents per security)
7
78.9
24.3
1
On 1 November 2023, APA Group acquired the Pilbara Energy System business (being Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman
Storage) Pty Ltd). As part of the acquisition, APA Group acquired the remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint operations.. The
acquisition required APA Group's historical 88.2% interest to be remeasured to fair value resulting in a valuation uplift of $1,051 million. Refer to note 2 and note
25 for further details relating to the acquisition.
2
During the year, APA Group impaired the carrying value of the Moomba Sydney Ethane Pipeline (MSEP) due to the customer on this single user pipeline
entering into voluntary administration. Refer to note 2 and note 13 for further details.
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
98 APA GROUP ANNUAL REPORT 2024
Consolidated Statement of Financial Position
2024
2023
Note
$m
$m
Current assets
Cash and cash equivalents
18
676
513
Trade and other receivables
9
433
374
Other financial assets
20
176
49
Inventories
83
55
Other
19
42
Current assets
1,387
1,033
Non-current assets
Trade and other receivables
9
7
27
Other financial assets
20
220
430
Investments accounted for using the equity method
23
262
273
Property, plant and equipment
11
12,477
10,755
Goodwill
12
1,882
1,184
Other intangible assets
12
3,293
2,130
Other
15
35
34
Non-current assets
18,176
14,833
Total assets
19,563
15,866
Current liabilities
Trade and other payables
10
555
471
Lease liabilities
17
20
16
Borrowings
18
1,899
202
Other financial liabilities
20
215
207
Provisions
14
160
159
Unearned revenue
15
13
Current liabilities
2,864
1,068
Non-current liabilities
Trade and other payables
10
1
9
Lease liabilities
17
50
47
Borrowings
18
11,023
11,321
Other financial liabilities
20
443
452
Deferred tax liabilities
6
1,469
894
Provisions
14
386
113
Unearned revenue
79
52
Non-current liabilities
13,451
12,888
Total liabilities
16,315
13,956
Net assets
3,248
1,910
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
AS AT 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 99
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Consolidated Statement of Financial Position (continued)
2024
2023
Note
$m
$m
Equity
APA Infrastructure Trust equity:
Issued capital
21
2,400
1,964
Reserves
(553)
(700)
Retained earnings
654
79
Equity attributable to unitholders of the parent
2,501
1,343
Non-controlling interests:
APA Investment Trust:
Issued capital
734
555
Retained earnings
13
12
Equity attributable to unitholders of APA Investment Trust
22
747
567
Total equity
3,248
1,910
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
AS AT 30 JUNE 2024
100 APA GROUP ANNUAL REPORT 2024
Consolidated Statement of Changes in Equity
APA Infrastructure Trust
APA Investment Trust
Issued capital
Asset
revaluation
reserve ¹
Share-based
payments
reserve ²
Hedging
reserve ³
Retained
earnings
Attributable to
owners of the
parent
Issued capital
Retained
earnings
APA
Investment
Trust
Total
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
Balance at 1 July 2022
2,225
9
6
(343)
75
1,972
644
13
657
2,629
Profit for the year
—
—
—
—
263
263
—
24
24
287
Other comprehensive income
—
—
—
(534)
5
(529)
—
—
—
(529)
Income tax relating to components of other
comprehensive income
—
—
—
160
(1)
159
—
—
—
159
Total comprehensive income for the year
—
—
—
(374)
267
(107)
—
24
24
(83)
Payment of distributions (note 8)
(261)
—
—
—
(263)
(524)
(89)
(25)
(114)
(638)
Equity settled long-term incentives (net of tax)
—
—
2
—
—
2
—
—
—
2
Balance at 30 June 2023
1,964
9
8
(717)
79
1,343
555
12
567
1,910
Balance at 1 July 2023
1,964
9
8
(717)
79
1,343
555
12
567
1,910
Profit for the year
—
—
—
—
978
978
—
20
20
998
Other comprehensive income
—
—
—
208
7
215
—
—
—
215
Income tax relating to components of other
comprehensive income
—
—
—
(62)
(2)
(64)
—
—
—
(64)
Total comprehensive income for the year
—
—
—
146
983
1,129
—
20
20
1,149
Payment of distributions (note 8)
(177)
—
—
—
(408)
(585)
(78)
(19)
(97)
(682)
Equity settled long-term incentives (net of tax)
—
—
1
—
—
1
—
—
—
1
Securities issued under institutional placement ⁴
475
—
—
—
—
475
200
—
200
675
Securities issued under retail securities purchase
plan ⁵
141
—
—
—
—
141
59
—
59
200
Securities issued under distribution reinvestment
plan⁶
2
—
—
—
—
2
1
—
1
3
Security issues costs, net of tax
(5)
—
—
—
—
(5)
(3)
—
(3)
(8)
Balance at 30 June 2024
2,400
9
9
(571)
654
2,501
734
13
747
3,248
1
The asset revaluation reserve arose on the revaluation of the existing interest in a pipeline as a result of a business combination. Where revalued pipelines are sold, the portion of the asset revaluation reserve which relates to that asset is
effectively realised and is transferred directly to retained earnings. The reserve can be used to pay distributions only in limited circumstances.
2
The share-based payments reserve represents the expenses recognised in the Consolidated Statement of Profit or Loss equal to the portion of the services received based on the fair value of the equity instrument at grant date.
3
The hedging reserve represents the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. The cumulative deferred gain or loss on the
hedge is recognised in the Consolidated Statement of Profit or Loss when the hedged transaction impacts profit or loss, consistent with the applicable accounting policy.
4 On 29 August 2023, the Group issued 79.4 million new stapled securities via institutional placement at an issue price of $8.50.
5
On 22 September 2023, the Group issued 23.7 million new stapled securities via security purchase plan at an issue price of $8.46.
6 On 14 March 2024, the Group issued 0.4 million new stapled securities via distribution reinvestment plan (DRP) at an issue price of $8.27.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 101
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Consolidated Statement of Cash Flows
2024
2023
Note
$m
$m
Cash flows from operating activities
Receipts from customers
3,272
3,126
Payments to suppliers and employees
(1,586)
(1,479)
Dividends received from associates and joint ventures
14
19
Proceeds from repayments of finance leases
1
1
Interest received
47
21
Interest and other costs of finance paid
(540)
(460)
Income taxes paid
(52)
(22)
Net cash provided by operating activities
1,156
1,206
Cash flows from investing activities
Payments for property, plant and equipment ¹
(1,053)
(1,166)
Proceeds from sale of property, plant and equipment ²
41
211
Payments for intangible assets
(43)
(14)
Payments for controlled entities, net of cash acquired ³
(1,615)
–
Capital return from Joint Venture
13
–
Net cash used in investing activities
(2,657)
(969)
Cash flows from financing activities
Proceeds from borrowings
3,423
–
Repayments of borrowings
(1,905)
(3)
Receipts from debt and hedge settlements
4
–
Proceeds from issue of securities
875
–
Payments for security issue costs
(11)
–
Repayments of lease liabilities
(18)
(16)
Transaction costs related to borrowings
(25)
(7)
Distributions paid to:
Unitholders of APA Infrastructure Trust (net of DRP issuance)
8
(582)
(524)
Unitholders of non-controlling interests – APA Investment Trust (net of DRP issuance)
8
(97)
(114)
Net cash provided by/(used in) financing activities
1,664
(664)
Net increase/(decrease) in cash and cash equivalents
163
(427)
Cash and cash equivalents at beginning of financial year
513
940
Cash and cash equivalents at end of financial year
18
676
513
1
Included in FY23 is the net consideration paid of $110 million to acquire Basslink.
2
Included in FY24 is the second post completion proceeds of $40 million from the sale of the Orbost Gas Processing Plant on 28 July 2022. Included in FY23 is
the proceeds from the $210 million upfront component of the proceeds from the same asset sale.
3
Payments for acquisition of subsidiaries, net of cash acquired is the consideration paid to acquire the Pilbara Energy System business, including the
remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint operations. Refer to note 25 for further details.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
102 APA GROUP ANNUAL REPORT 2024
Consolidated Statement of Cash Flows (continued)
Reconciliation of profit for the year to the net cash provided by operating activities
2024
2023
Note
$m
$m
Profit for the year
998
287
Impairment of property, plant and equipment
2
144
–
Profit on disposal of property, plant and equipment
(1)
–
Share of net profits of joint ventures and associates using the equity method
(25)
(23)
Dividends received from equity accounted investments
14
19
Remeasurement of APA's previous 88.2% interest in GGT joint operations ¹
2
(1,051)
–
Depreciation and amortisation expenses
919
750
Finance costs
60
2
Effect of exchange rate changes
1
3
Amortisation of hedging loss
–
4
Wallumbilla Gladstone Pipeline hedge accounting discontinuation ²
38
37
Equity settled long-term incentives
1
2
Changes in assets and liabilities:
Trade and other receivables
(39)
(51)
Inventories
(19)
(9)
Other assets
16
(13)
Trade and other payables
73
21
Provisions
(11)
16
Other liabilities
15
(8)
Income tax balances
23
169
Net cash provided by operating activities
1,156
1,206
1
The remeasurement relating to APA's previously held interest of 88.2% in Goldfields Gas Transmission (GGT) joint operations in accordance with AASB 3 Business
Combinations. Refer to note 2 and 25 for further details.
2
In February 2022, following entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated from early
calendar year 2022 to late calendar year 2025. The revenues were previously hedged by USD denominated 144A notes. WGP hedge accounting discontinuation
reflects the non-cash amortisation of the amount deferred in the hedging reserve over the same period relating to the discontinued hedge relationship.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
within operating cash flows.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 103
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements
Basis of Preparation
1. About this report
In the following financial statements, note disclosures are grouped into six sections being: Basis of Preparation;
Financial Performance; Operating Assets and Liabilities; Capital Management; Group Structure; and Other. Each
note sets out the accounting policies applied in producing the results along with any key judgements and
estimates used.
Basis of Preparation
104
1.
About this report
104
2.
General information
105
Financial Performance
107
3.
Segment information
107
4.
Revenue
112
5.
Expenses
114
6.
Income tax
115
7.
Earnings per security
118
8.
Distributions
119
Operating Assets and Liabilities
121
9.
Receivables
121
10.
Payables
121
11.
Property, plant and equipment
122
12.
Goodwill and intangibles
124
13.
Impairment of non-financial assets
126
14.
Provisions
129
15.
Other non-current assets
131
16.
Employee superannuation plans
131
17.
Leases
133
Capital Management
135
18.
Net debt
136
19.
Financial risk management
139
20.
Other financial instruments
153
21.
Issued capital
156
Group Structure
157
22.
Non-controlling interests
157
23.
Joint arrangements and associates
158
24.
Subsidiaries
160
Other
164
25.
Acquisition of Pilbara Energy System
164
26.
Commitments and contingencies
167
27.
Director and Executive Key Management
Personnel remuneration
168
28.
Remuneration of external auditor
169
29.
Related party transactions
170
30.
Parent entity information
171
31.
Adoption of new and revised Accounting
Standards
172
32.
Events occurring after reporting date
172
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
104 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Basis of Preparation (continued)
2. General information
APA Group comprises of two trusts, APA Infrastructure Trust and APA Investment Trust, which are registered
managed investment schemes regulated by the Corporations Act 2001. APA Infrastructure Trust units are
"stapled" to APA Investment Trust units on a one-to-one basis so that one APA Infrastructure Trust unit and one
APA Investment Trust unit form a single stapled security which trades on the Australian Securities Exchange under
the code “APA”.
Australian Accounting Standards require one of the stapled entities of a stapled structure to be identified as the
parent entity for the purposes of preparing a consolidated financial report. In accordance with this requirement,
APA Infrastructure Trust is deemed to be the parent entity. The results and equity attributable to APA Investment
Trust, being the other stapled entity which is not directly or indirectly held by APA Infrastructure Trust, are shown
separately in the financial statements as non-controlling interests.
The financial report represents the consolidated financial statements of APA Infrastructure Trust and APA
Investment Trust (together the "Trusts"), their respective subsidiaries and their share of joint arrangements and
associates (together "APA Group"). For the purposes of preparing the consolidated financial report, APA Group is a
for-profit entity.
Total comprehensive income attributable to non-controlling interests is reported as disclosed in the separate
financial statements of APA Investment Trust. Comprehensive income arising from transactions between the
parent (APA Infrastructure Trust) group entities and the non-controlling interest (APA Investment Trust) have not
been eliminated in the reporting of total comprehensive income attributable to non-controlling interests.
All intra-group transactions and balances have been eliminated on consolidation. Where necessary, adjustments
are made to the assets, liabilities, and results of subsidiaries, joint arrangements and associates to bring their
accounting policies into line with those used by APA Group.
APA Infrastructure Trust's registered office and principal place of business is as follows:
Level 25
580 George Street
SYDNEY NSW 2000
Tel: (02) 9693 0000
The consolidated general purpose financial report for the year ended 30 June 2024 was authorised for issue in
accordance with a resolution of the directors on 28 August 2024.
This general purpose financial report has been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board ("AASB") and also complies with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting Standards Board.
The financial report has been prepared on the basis of historical cost, except for the revaluation of financial
instruments. The financial report including prior year comparatives is presented in Australian dollars and all
values are rounded to the nearest million dollars ($ million) in accordance with ASIC Corporations Instrument
2016/191, unless otherwise stated.
Foreign currency transactions
Both the functional and presentation currency of APA Group is Australian dollars (A$). All foreign currency
transactions during the financial year are brought to account using the exchange rate in effect at the date of the
transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at
that date and resulting exchange differences are recognised in profit or loss in the period in which they arise,
unless they qualify for hedge accounting.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 105
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Basis of Preparation (continued)
2. General information (continued)
Critical accounting judgements and key sources of estimation uncertainty
In the process of applying APA Group’s accounting policies, a number of judgements and estimates have been
made. Judgements and estimates which are material to the financial statements are found in the following
disclosures:
•
Property, plant and equipment (note 11)
•
Carrying value of non-financial assets (note 13)
•
Provision for payroll review (note 14)
•
Restoration provision (note 14)
•
Fair value of financial instruments (note 19(c))
•
Equity accounted investments (note 23)
•
Acquisition of Pilbara Energy System (note 25)
•
Commitments and contingencies (note 26)
Judgements and estimates require assumptions to be made about highly uncertain external factors such as:
discount rates; probability factors; the effects of inflation within the Reserve Bank of Australia's guidance range;
the outlook for global and regional gas market supply-and-demand conditions; contract renewals; outcome of
regulatory review and determination; asset useful lives; environmental regulations; and climate-related risks. As
such the actual outcomes may differ as a result of change in these judgements and assumptions.
These judgements, estimates and assumptions are based on the most current facts and circumstances and are
reassessed on an ongoing basis, the results of which form the basis of the reported amounts that are not readily
apparent from other sources. Actual results may differ from these estimates under different assumptions and
conditions in respect of laws, regulations, climate change, licences and recognised practising codes including
health, safety and environment, employee entitlements, environmental laws and regulations and asset
construction and operation. This may materially affect the financial results and the financial position to be
reported in future periods.
Working capital
As at 30 June 2024, APA Group's current liabilities exceeded current assets by $1,477 million (2023: current liabilities
exceeded current assets by $35 million) primarily as a result of current borrowings of $1,899 million.
APA has access to sufficient available cash and committed undrawn bank facilities of $2,276 million as at 30 June
2024 (2023: $2,111 million) to meet the repayment of current borrowings on the due date and to assist in the
ongoing funding of the business. APA Group continues to fund its growth with appropriate levels of equity, cash
retained in the business, and debt in order to maintain strong BBB/Baa2 credit ratings.
The Directors continually monitor APA Group's working capital position, including forecast working capital
requirements and have ensured that there are appropriate funding strategies and debt facilities in place to
accommodate the funding of capital expenditure and debt repayments as and when they fall due.
Significant items
Individually significant items included in profit after income tax expense are as follows:
2024
2023
$m
$m
Significant items impacting profit before tax
Remeasurement of APA's previous 88.2% interest in GGT joint operations
1
1,051
–
Impairment of property, plant and equipment ²
(144)
–
Pilbara Energy System acquisition costs ³
(72)
–
Total significant items impacting profit before tax
835
—
Income tax related to significant items above
44
—
Profit from significant items after income tax
879
—
1
The remeasurement relating to APA's previously held interest of 88.2% in Goldfields Gas Transmission (GGT) joint operations in accordance with AASB 3
Business Combinations. The tax effect is included in the deferred tax recognised on acquisition. Refer to note 25 for further details.
2
During the year, APA Group impaired the carrying value of the Moomba Sydney Ethane Pipeline (MSEP) due to the customer on this single user pipeline
entering into voluntary administration. Refer to note 13 for further details.
3
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). Acquisition and stamp duty costs of $72 million have been incurred to 30 June 2024. Refer to note 25 for further details.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
106 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Basis of Preparation (continued)
Financial Performance
3. Segment information
APA Group operates in one geographical segment, being Australia and the revenue from major products and
services is shown by the reportable segments.
APA Group comprises the following reportable segments:
•
Energy Infrastructure: APA’s wholly or majority owned energy infrastructure assets across gas transmission,
compression, processing, storage, electricity generation and transmission (gas and renewables), and battery
energy storage system;
•
Asset Management: The provision of asset management and operating services for third parties and the
majority of APA’s Energy Investments; and
•
Energy Investments: APA’s interests in energy infrastructure investments.
Reportable segments
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2024
$m
$m
$m
$m
$m
Segment revenue ¹
Revenue from contracts with customers
2,424
118
—
—
2,542
Pass-through revenue
55
418
—
—
473
Total revenue from contracts with customers
2,479
536
—
—
3,015
Equity accounted net profits
—
—
25
—
25
Other income
13
—
—
—
13
Finance lease and investment interest income
1
—
1
—
2
Total segment revenue
2,493
536
26
—
3,055
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation ²
(38)
—
—
—
(38)
Other interest income
—
—
—
47
47
Total revenue
2,455
536
26
47
3,064
1
The segment revenue reported represents revenue generated from external customers. Any inter-segment sales were immaterial.
2
In February 2022, following the entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated
from early calendar year 2022 to late calendar year 2025 that were hedged by USD denominated 144A notes. The segment result reflects the hedged rate for
revenues in this period, while the WGP hedge accounting discontinuation reflects the non-cash amortisation of the amount deferred in the hedging reserve
over the same period relating to the discontinued hedge relationship.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 107
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
2024
Energy
Infrastructure
$m
Asset
Management
$m
Energy
Investments
$m
Other
$m
Consolidated
$m
Segment result
Segment underlying EBITDA
1
1,959
69
—
—
2,028
Share of net profits of joint ventures and associates
using the equity method
—
—
25
—
25
Finance lease and investment interest income
—
—
1
—
1
Corporate costs
—
—
—
(161)
(161)
Total underlying EBITDA
1
1,959
69
26
(161)
1,893
Fair value loss on contracts for difference
2
(17)
—
—
—
(17)
Technology transformation projects
3
—
—
—
(84)
(84)
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation
4
(38)
—
—
—
(38)
Pilbara Energy System integration costs
5
—
—
—
(14)
(14)
Payroll review ⁶
—
—
—
(4)
(4)
Total reported EBITDA ⁷
1,904
69
26
(263)
1,736
Depreciation and amortisation
(901)
(18)
—
—
(919)
Total reported EBIT ⁸
1,003
51
26
(263)
817
Net interest cost
9
(579)
Profit before tax excluding significant items
238
Income tax expense
(119)
Profit after tax excluding significant items
119
Significant items before tax ¹⁰
835
Reported profit before tax
1,073
Significant items after tax ¹⁰
879
Reported profit after tax
998
1
Underlying earnings before interest, tax, depreciation, and amortisation ("EBITDA") excludes recurring items arising from other activities and transactions that
are not directly attributable to the performance of APA Group's business operations and significant items.
2
The amount represents a net loss arising from electricity contracts for difference that economically hedge the future cash flows of the electricity contracts
for which hedge accounting is not applicable.
3
The amount represents costs associated with technology and transformation projects to develop and uplift organisation capabilities, including SaaS
customisation and configuration costs incurred during implementation.
4 In February 2022, following the entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated
from early calendar year 2022 to late calendar year 2025 that were hedged by USD denominated 144A notes. The segment result reflects the hedged rate for
revenues in this period, while the WGP hedge accounting discontinuation reflects the non-cash amortisation of the amount deferred in the hedging reserve
over the same period relating to the discontinued hedge relationship.
5
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). Integration costs of $14 million have been incurred to 30 June 2024. Refer to note 25 for further details.
6 Interest and other related costs associated with the payroll review are included within reported EBITDA.
7
Earnings before interest, tax, depreciation, and amortisation ("EBITDA"), including non-operating items and excluding significant items.
8 Earnings before interest and tax ("EBIT").
9
Excluding finance lease and investment interest income, any gains or losses on revaluation of derivatives included as part of EBIT for segment reporting
purposes, but including other interest income.
10 Refer to note 2 significant items section for further details.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
108 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Infrastructure
Management
Investments
Other
Consolidated
2024
$m
$m
$m
$m
$m
Segment assets and liabilities
Segment assets
18,047
191
12
—
18,250
Carrying value of investments using the equity
method
—
—
262
—
262
Unallocated assets ¹
—
—
—
1,051
1,051
Total assets
18,047
191
274
1,051
19,563
Segment liabilities
1,088
105
—
—
1,193
Unallocated liabilities ²
—
—
—
15,122
15,122
Total liabilities
1,088
105
—
15,122
16,315
Energy
Asset
Energy
1
Unallocated assets consist of cash and cash equivalents, fair value of cross currency swaps, foreign currency forward exchange contracts and equity
forwards.
2
Unallocated liabilities consist of current and non-current borrowings, deferred tax liabilities, fair value of cross currency swaps, foreign currency forward
exchange contracts and equity forwards.
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2023
$m
$m
$m
$m
$m
Segment revenue ¹
Revenue from contracts with customers
2,208
114
—
—
2,322
Pass-through revenue
51
461
—
—
512
Total revenue from contracts with customers
2,259
575
—
—
2,834
Equity accounted net profits
—
—
23
—
23
Other income
6
1
—
—
7
Finance lease and investment interest income
1
—
—
—
1
Total segment revenue
2,266
576
23
—
2,865
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation ²
(37)
—
—
—
(37)
Income on Basslink debt investment ³
—
—
50
—
50
Basslink AEMC market compensation ⁴
15
—
—
—
15
Other interest income
—
—
—
20
20
Total revenue
2,244
576
73
20
2,913
1
The segment revenue reported represents revenue generated from external customers. Any inter-segment sales were immaterial.
2
In February 2022, following the entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated
from early calendar year 2022 to late calendar year 2025 that were hedged by USD denominated 144A notes. The segment result reflects the hedged rate for
revenues in this period, while the WGP hedge accounting unwind reflects the non-cash amortisation of the amount deferred in hedging reserve over the
same period relating to the discontinued hedge relationship.
3
Income including accrued interest and the revaluation gain up until the date of acquisition of Basslink Pty Ltd and its subsidiary on 20 October 2022. As part
of the net consideration, APA was repaid the face value of its 100% interest in Basslink’s senior secured debt of $648 million.
4 On 15 December 2022, the Australian Energy Market Commission (AEMC) approved Basslink's compensation claim of $15 million for direct costs following the
application of the administered price cap during an administered price period in Queensland, New South Wales, Victoria and South Australia in June 2022.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 109
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2023
$m
$m
$m
$m
$m
Segment result
Segment underlying EBITDA
1
1,792
56
—
—
1,848
Share of net profits of joint ventures and associates
using the equity method
—
—
23
—
23
Finance lease and investment interest income
1
—
—
—
1
Corporate costs
—
—
—
(147)
(147)
Total underlying EBITDA
1
1,793
56
23
(147)
1,725
Fair value gain on contracts for difference
2
12
—
—
—
12
Technology transformation projects
3
—
—
—
(67)
(67)
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation
4
(37)
—
—
—
(37)
Basslink debt revaluation, interest and integration
costs
5
—
—
47
—
47
Basslink AEMC market compensation
6
15
—
—
—
15
Payroll review
7
—
—
—
(9)
(9)
Total reported EBITDA
8
1,783
56
70
(223)
1,686
Depreciation and amortisation
(733)
(17)
—
—
(750)
Total reported EBIT
9
1,050
39
70
(223)
936
Net interest cost ¹⁰
(459)
Profit before tax
477
Income tax expense
(190)
Profit after tax
287
1
Earnings before interest, tax, depreciation, and amortisation ("EBITDA") excludes recurring items arising from other activities and transactions that are not
directly attributable to the performance of APA Group's business operations.
2
The amount represents a net gain arising from electricity contracts for difference that economically hedge the future cash flows of the electricity contracts
for which hedge accounting is not applicable.
3
The amount represents costs associated with technology and transformation projects to develop and uplift organisation capabilities, including SaaS
customisation and configuration costs incurred during implementation.
4 In February 2022, following entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated from
early calendar year 2022 to late calendar year 2025. The revenues were previously hedged by USD denominated 144A notes. WGP hedge accounting
discontinuation reflects the non-cash amortisation of the amount deferred in the hedging reserve over the same period relating to the discontinued hedge
relationship.
5
Income including accrued interest and the revaluation gain up until the date of acquisition of Basslink Pty Ltd and its subsidiary on 20 October 2022, net of
integration costs of $3 million incurred in the full year to 30 June 2023. As part of the net consideration to acquire Basslink, APA was repaid the face value of its
100% interest in Basslink’s senior secured debt of $648 million.
6 On 15 December 2022, the Australian Energy Market Commission (AEMC) approved Basslink's compensation claim of $15 million for direct costs following the
application of the administered price cap during an administered price period in Queensland, New South Wales, Victoria and South Australia in June 2022.
7
Estimated payment shortfalls for the year ended 30 June 2023 are included within underlying EBITDA. Interest and other related costs are included within
reported EBITDA.
8 Earnings before interest, tax, depreciation, and amortisation ("EBITDA").
9
Earnings before interest and tax ("EBIT").
10 Excluding finance lease and investment interest income, any gains or losses on revaluation of derivatives included as part of EBIT for segment reporting
purposes, but including other interest income.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
110 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2023
$m
$m
$m
$m
$m
Segment assets and liabilities
Segment assets
14,422
177
11
—
14,610
Carrying value of investments using the equity
method
—
—
273
—
273
Unallocated assets ¹
—
—
—
983
983
Total assets
14,422
177
284
983
15,866
Segment liabilities
659
94
—
—
753
Unallocated liabilities ²
—
—
—
13,203
13,203
Total liabilities
659
94
—
13,203
13,956
1
Unallocated assets consist of cash and cash equivalents, fair value of cross currency swaps, foreign currency forward exchange contracts and equity
forwards.
2
Unallocated liabilities consist of current and non-current borrowings, deferred tax liabilities, fair value of cross currency swaps, foreign currency forward
exchange contracts and equity forwards.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 111
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
4. Revenue
Disaggregation of revenue
Revenue is disaggregated below by business unit and region.
2024
2023
$m
$m
Energy Infrastructure
Wallumbilla Gladstone Pipeline ¹
659
622
East Coast Gas
833
808
West Coast Gas
410
369
Contracted Power Generation ²
453
365
Electricity Transmission ²
69
44
Energy Infrastructure revenue
2,424
2,208
Asset Management revenue
118
114
Pass-through revenue
473
512
Total revenue from contracts with customers
3,015
2,834
Energy Investments
25
23
Other non-contract revenue
15
8
Total segment revenue
3,055
2,865
Wallumbilla Gladstone Pipeline hedge accounting discontinuation ³
(38)
(37)
Income on Basslink debt investment ⁴
—
50
Basslink AEMC market compensation ⁵
—
15
Other interest income
47
20
Total revenue
3,064
2,913
1
Wallumbilla Gladstone Pipeline is separated from East Coast Gas in this note as a result of the significance of its revenue and EBITDA in the Group. It is
categorised as part of the East Coast Grid cash-generating unit for impairment assessment purposes in note 13.
2
Electricity Generation and Transmission has been split into Contracted Power Generation and Electricity Transmission to align the business segments with
the nature of operations. The results of the Pilbara Energy System business are included within Contracted Power Generation and the remaining 11.8% of GGT
joint operations is included within West Coast Gas following the acquisition on 1 November 2023.
3
In February 2022, following entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP revenues to be generated from
early calendar year 2022 to late calendar year 2025. The revenues were previously hedged by USD denominated 144A notes. WGP hedge accounting
discontinuation reflects the non-cash amortisation of the amount deferred in the hedging reserve over the same period relating to the discontinued hedge
relationship.
4 Included in FY23 is accrued interest and the revaluation gain up until the date of acquisition of Basslink Pty Ltd and its subsidiary on 20 October 2022. As part
of the net consideration, APA was repaid the face value of its 100% interest in Basslink’s senior secured debt of $648 million.
5
Included in FY23 is $15 million relating to a compensation claim which was approved by the Australian Energy Market Commission (AEMC) for direct costs
following the application of the administered price cap during an administered price period in Queensland, New South Wales, Victoria and South Australia in
June 2022.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
112 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
4. Revenue (continued)
Revenue is recognised at an amount that reflects the consideration to which the Group expects to be
entitled in exchange for the provision of services or for the transferring of goods to a customer (the
performance obligations) under a contract. APA Group recognises revenue when control of a product or
service is transferred to the customer. Amounts disclosed as revenue are net of duties, goods and services
tax (“GST”) and other taxes paid, except where the amount of GST incurred is not recoverable from the
taxation authority. Given the nature of APA Group’s services there is no significant right of return or warranty
provided.
Revenue from contracts with customers is derived from the major business activities as follows:
•
Energy Infrastructure revenue from contracts with customers, is derived from the transportation, processing
and storage of gas and other related services (transmission revenue), and the generation and storage of
electricity and other related services including the sale of Renewable Energy Certificates and carbon credits
(power generation revenue). Revenue from contracts with customers may either be identified as separate
performance obligations or a series of distinct performance obligations that are substantially the same, have
the same pattern of transfer and are therefore treated as a single performance obligation that is satisfied
over time. This includes both firm and interruptible services. The consideration is primarily volume based and is
recognised as revenue in a manner that depicts the transfer based on output to the customer. This method
most accurately depicts the progress towards satisfaction of the performance obligation of the services
provided, as the customer simultaneously receives and consumes the benefits of APA Group’s service and
obtains value as each volume of output is transported by APA Group. The amount billed corresponds directly
to the value of the performance to date;
•
Asset Management revenue from contracts with customers, is derived from the provision of commercial
services, operating services, asset management services and/or asset maintenance services to APA Group's
energy investments and other third parties. APA Group recognises revenue at the amount to which APA Group
has a right to invoice; and
•
Pass-through revenue, is revenue from contracts with customers for the provision of commercial services,
operating services, asset management services and/or asset maintenance services to APA Group’s energy
investments. Any management fee earned for the provision of these services is recognised as part of asset
management revenues. APA Group recognises revenue at the amount to which APA Group has a right to
invoice. APA Group is determined to be the principal in these relationships.
Other types of revenue are recognised as follows:
•
Other non-contract revenue: includes dividend income, which is recognised when the right to receive the
payment has been established; and
•
Unallocated revenue: interest income, which is recognised as it accrues and is determined using the effective
interest method and finance lease income, which is allocated to accounting periods so as to reflect a
constant periodic rate of return on APA Group's net investment outstanding in respect of the leases.
Contract liabilities – unearned revenue
Where amounts have been received in advance of fulfilling the contract obligation these amounts are deferred
in the balance sheet as unearned revenue until the performance obligation is fulfilled. Where the period between
the payment by the customer and the fulfilment of the obligation is expected to exceed one year any amounts
associated with the finance component of this deferred revenue is recognised as interest expense.
Included in the unearned revenue are customer upfront contributions on contracts with customers and
government grants received in advance. During the year, APA Group recognised $7 million (2023: $8 million) in
revenue from contracts with customers from the unearned revenue balance at 30 June 2023.
Contract assets – accrued revenue
Contract assets primarily relate to APA Group’s right to consideration for work completed but not billed at the
reporting date. These amounts are known as accrued revenue and are disclosed in note 9.
Accrued revenue is transferred to trade receivables when the rights become unconditional. This usually occurs
when APA Group issues an invoice to the customer.
Accounting for costs to obtain contracts
APA Group expenses costs to obtain contracts as they are incurred, since they incurred whether the contract is
obtained or not (e.g. staff salaries, professional fees, etc.).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 113
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
4. Revenue (continued)
Future revenues from remaining performance obligations
As at 30 June 2024, future contracted Energy Infrastructure revenues extending through to 2051 are
approximately $15.9 billion (2023: $16.4 billion extending through to 2051), of which $1.9 billion is expected to be
recognised in the year ending 30 June 2025. These amounts relate to Energy Infrastructure revenue from
contracts, with a significant portion of customers being high credit worthy counterparties.
Future contracted Energy Infrastructure revenues outlined above are in nominal 2024 dollars escalated by CPI.
Variable revenues, potential future revenues from new contracts, contract renewals or extensions, and revenues
from potential new assets or expansions where a contract does not currently exist with a customer are not
included. As such, the future contract revenues described above represent only part of APA Group's forecast
revenues for the year ended 30 June 2025 and beyond.
Information about major customers
Included in revenues from contracts with customers arising from Energy Infrastructure of $2,424 million (2023:
$2,208 million) are revenues of approximately $778 million (2023: $783 million) which arose from sales to APA
Group's top three customers, of which $355 million is derived from a single customer.
5. Expenses
2024
2023
$m
$m
Depreciation of non-current assets
687
554
Amortisation of non-current assets
232
196
Depreciation and amortisation expense
919
750
Energy infrastructure costs – pass-through
55
51
Asset management costs – pass-through
418
461
Other operating costs – pass-through
473
512
Interest on bank overdrafts and borrowings ¹
597
498
Amortisation of deferred borrowing costs
18
10
Other finance costs
8
8
623
516
Less: amounts included in the cost of qualifying assets
(30)
(42)
593
474
Loss/(gain) on derivatives ²
17
(7)
Unwinding of discount on non-current liabilities
12
8
Unwinding of discount on deferred revenue
2
2
Interest incurred on lease liabilities
3
2
Finance costs
627
479
Defined contribution plans
34
26
Defined benefit plans (note 16)
2
2
Post-employment benefits
36
28
Termination benefits
1
2
Cash settled long-term incentive payments ³
44
36
Equity settled long-term incentive payments ³
10
8
Other employee benefits
379
324
Employee benefit expense ⁴
470
398
1
The average interest rate applicable to drawn debt is 4.77% p.a. (2023: 4.43% p.a.) excluding finance costs associated with amortisation of borrowing costs.
2
Represents unrealised gains and losses on the mark-to-market valuation of indexed revenue contract, hedge de-designation and hedge ineffectiveness on
other financial instruments.
3
APA Group provides benefits to certain employees in the form of long-term incentive payments. For cash settled long-term incentive payments, a liability
equal to the portion of services received is recognised at the current fair value determined at each reporting date. For equity settled long-term incentive
payments, a reserve is recognised equal to the portion of services received based on the fair value of the equity instrument at grant date.
4 Employee benefit expense of $95 million (2023: $77 million) is recharged as pass-through revenue and presented as part of other operating costs – pass-
through.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
114 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Income tax
The major components of tax expense are:
2024
2023
$m
$m
Income statement
Current tax (expense)/benefit in respect of the current year
(38)
122
Adjustments recognised in the current year in relation to current tax of prior years
1
(2)
Deferred tax expense relating to the origination and reversal of temporary differences
(38)
(310)
Total tax expense
(75)
(190)
Tax reconciliation
Profit before tax
1,073
477
Income tax expense calculated at 30%
(322)
(143)
Non-assessable trust distribution
6
7
Non-deductible expenses
(76)
(53)
Non-assessable income
316
—
(76)
(189)
Franking credits received
1
1
Other
—
(2)
(75)
(190)
Income tax expense comprises of current and deferred tax. Income tax is recognised in profit or loss except to
the extent that it relates to items recognised directly in other comprehensive income, in which case it is
recognised in equity. Current tax represents the expected taxable income at the applicable tax rate for the
financial year, and any adjustment to tax payable in respect of previous financial years.
Income tax expense for the year is $75 million (2023: $190 million). $15 million income tax receivable has been
recognised (2023: nil income tax payable or receivable). Refer to note 9 for further details.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 115
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Income tax (continued)
Deferred tax balances
Deferred tax (liabilities)/assets arise from the following:
Opening
balance
Charged to
income
Charged to
equity
Acquisition ¹
Closing
balance
2024
$m
$m
$m
$m
$m
Gross deferred tax liabilities
Property, plant and equipment and intangibles
(1,498)
(5)
—
(493)
(1,996)
Investments equity accounted
(2)
—
1
—
(1)
Deferred expenses
(48)
6
—
—
(42)
(1,548)
1
1
(493)
(2,039)
Gross deferred tax assets
Provisions
87
75
—
18
180
Cash flow hedges
320
(8)
(62)
—
250
Borrowings
—
—
—
(11)
(11)
Security issuance costs
—
(2)
2
—
—
Deferred revenue
13
8
—
11
32
Defined benefit obligation
1
(1)
(2)
—
(2)
Tax losses
232
(113)
—
—
119
Other
1
2
(1)
—
2
654
(39)
(63)
18
570
Net deferred tax liability
(894)
(38)
(62)
(475)
(1,469)
2023
Gross deferred tax liabilities
Property, plant and equipment and intangibles
(1,176)
(322)
—
—
(1,498)
Investments equity accounted
(1)
—
(1)
—
(2)
Deferred expenses
(51)
3
—
—
(48)
Other
(1)
2
—
—
1
(1,229)
(317)
(1)
—
(1,547)
Gross deferred tax assets
—
Provisions
83
4
—
—
87
Cash flow hedges
154
5
161
—
320
Deferred revenue
17
(4)
—
—
13
Defined benefit obligation
2
—
(1)
—
1
Tax losses
110
122
—
—
232
366
127
160
—
653
Net deferred tax liability
(863)
(190)
159
—
(894)
1
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). Refer to note 25 for further details. Deferred tax liability disclosed in note 25 comprised of $475 million deferred tax
recognised on acquisition and $67 million deferred tax relating to the Group's pre-existing interest in GGT joint operations.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
116 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Income tax (continued)
Deferred tax assets
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. The following temporary differences are not provided for:
•
Initial recognition of goodwill;
•
Initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and
•
Differences relating to investments in wholly-owned entities to the extent that they will probably not reverse in
the foreseeable future.
Deferred tax is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using the appropriate tax rates at the end of the reporting period.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Tax consolidation
APA Infrastructure Trust and its wholly-owned Australian resident entities formed a tax-consolidated group with
effect from 1 July 2003 and are therefore taxed as a single entity from that date. The head entity within the tax-
consolidated group is APA Infrastructure Trust. The members of the tax-consolidated group are identified at note
24.
Tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of the
members of the tax- consolidated group are recognised in the separate financial reports of the members of the
tax-consolidated group using the 'separate taxpayer within group' approach, by reference to the carrying
amounts in the separate financial reports of each entity and the tax values applying under tax consolidation.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the wholly-owned
entities are assumed by the head entity in the tax-consolidated group and are recognised as amounts payable/
(receivable) to/(from) other entities in the tax- consolidated group in conjunction with any tax funding
arrangement amounts.
The head entity recognises deferred tax assets arising from unused tax losses of the tax-consolidated group to
the extent that it is probable that future taxable profits of the tax-consolidated group will be available against
which the assets can be utilised.
Nature of tax funding arrangement and tax sharing agreement
Entities within the tax-consolidated group have entered into a tax funding arrangement and a tax sharing
agreement with the head entity. Under the terms of the tax funding arrangement, each of the entities in the tax-
consolidated group have agreed to pay a tax equivalent payment to or from the head entity based on the
current tax liability or current tax asset of the entity. Such amounts are reflected in amounts receivable from or
payable to other entities in the tax-consolidated group.
The tax sharing agreement entered into between members of the tax-consolidated group provides for the
determination of the allocation of income tax liabilities between the entities should the head entity default on its
tax payment obligations or if an entity should leave the tax-consolidated group. The effect of the tax sharing
agreement is that each member's liability for the tax payable by the tax-consolidated group is limited to the
amount payable to the head entity under the tax funding arrangement.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 117
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
7. Earnings per security
2024
2023
cents
cents
Earnings per security
Basic and diluted earnings per unit attributable to the parent
77.3
22.3
Basic and diluted earnings per unit attributable to the non-controlling interest
1.6
2.0
Basic and diluted earnings per security
78.9
24.3
Earnings per security excluding significant items
Basic and diluted earnings excluding significant items per unit attributable to the parent
7.8
22.3
Basic and diluted earnings excluding significant items per unit attributable to
the non-controlling interest
1.6
2.0
Basic and diluted earnings per security excluding significant items
9.4
24.3
Underlying earnings per security ¹
Underlying basic and diluted earnings per unit attributable to the parent
16.6
24.6
Underlying basic and diluted earnings per unit attributable to the non-controlling interest
1.6
2.0
Underlying basic and diluted earnings per security
18.2
26.6
1
Excludes recurring items arising from other activities and transactions that are not directly attributable to the performance of APA Group's business
operations and significant items.
The earnings and weighted average number of ordinary securities used in the calculation of basic and diluted
earnings per security are as follows:
2024
2023
$m
$m
Net profit
Net profit attributable to unitholders of the parent
978
263
Net profit attributable to unitholders of the non-controlling interest
20
24
Net profit attributable to stapled securityholders for calculating basic and diluted earnings per
security (note 3)
998
287
Underlying net profit
Net profit attributable to unitholders of the parent
978
263
Significant items, net of tax (note 2)
(879)
—
Net profit excluding significant items attributable to unitholders of the parent
99
263
Fair value losses/(gains) on contracts for difference, net of tax
12
(8)
Technology transformation projects, net of tax
59
47
Wallumbilla Gladstone Pipeline hedge accounting discontinuation, net of tax
27
26
Basslink debt revaluation, interest and integration costs, net of tax
—
(33)
Basslink AEMC Market Compensation, net of tax
—
(11)
Payroll review, net of tax
3
6
Pilbara Energy System integration costs, net of tax
10
—
Underlying net profit attributable to unitholders of the parent
210
290
Underlying net profit attributable to unitholders of the non-controlling interest
20
24
Underlying net profit attributable to stapled securityholders for calculating basic and diluted earnings
per security
230
314
2024
2023
No. of
securities
No. of
securities
millions
millions
Weighted average number of ordinary securities used in the calculation of:
Basic earnings per security
1,265
1,180
Diluted earnings per security ¹
1,268
1,182
1
Includes 4 million (2023: 3 million) performance rights granted under long-term incentive plan. Each performance right is a right to receive one ordinary
stapled security in APA Group subject to satisfaction of certain performance hurdles and board approval. Further information can be found in the most
recent annual report. APA Group has historically instructed Link Market Services to acquire securities on-market to minimise dilution of existing
securityholders
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
118 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
8. Distributions
2024
2024
2023
2023
cents per
Total
cents per
Total
security
$m
security
$m
Recognised amounts
Final FY23 distribution paid on 13 September 2023
( 30 June 2022: Final FY22 distribution paid on 14 September 2022)
Profit distribution – APA Infrastructure Trust ¹
6.64
79
6.31
74
Capital distribution – APA Infrastructure Trust
15.02
177
15.40
182
Profit distribution – APA Investment Trust ²
1.00
12
1.14
13
Capital distribution – APA Investment Trust
6.34
74
5.15
61
29.00
342
28.00
330
1
30 June 2023: APA Infrastructure Trust profit distributions were unfranked (30 June 2022: fully franked).
2
APA Investment Trust profit distributions were unfranked.
2024
2024
2023
2023
cents per
Total
cents per
Total
security
$m
security
$m
Interim FY24 distribution paid on 14 March 2024
(31 December 2022: Interim FY23 distribution paid on 16 March 2023)
Profit distribution – APA Infrastructure Trust ¹
25.63
329
15.92
189
Capital distribution – APA Infrastructure Trust
—
—
6.67
79
Profit distribution – APA Investment Trust ²
0.57
7
1.01
12
Capital distribution – APA Investment Trust
0.30
4
2.40
28
26.50
340
26.00
308
Total distributions recognised
Profit distributions
33.84
427
24.38
288
Capital distributions
21.66
255
29.62
350
55.50
682
54.00
638
1
31 December 2023: APA Infrastructure Trust profit distribution were unfranked (31 December 2022: partially franked).
2
APA Investment Trust profit distributions were unfranked.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 119
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
8. Distributions (continued)
2024
2024
2023
2023
cents per
Total
cents per
Total
security
$m
security
$m
Unrecognised amounts
Final FY24 distribution payable on 18 September 2024 ¹
( 30 June 2023: Final FY23 distribution paid on 13 September 2023)
Profit distribution – APA Infrastructure Trust ²
28.48
366
6.64
79
Capital distribution – APA Infrastructure Trust
—
—
15.02
177
Profit distribution – APA Investment Trust ³
1.02
13
1.00
12
Capital distribution – APA Investment Trust
—
—
6.34
74
29.50
379
29.00
342
1
Record date 28 June 2024.
2
30 June 2024: APA Infrastructure Trust profit distributions are partially franked resulting in franking credits of 3.02 per security (30 June 2023: unfranked).
3
APA Investment Trust profit distributions are unfranked.
The final distribution in respect of the financial year has not been recognised in this financial report because the
final distribution was not declared, determined or publicly confirmed prior to the end of the financial year.
2024
2023
$m
$m
Franking account balance
54
2
Income tax (receivable)/payable
(15)
(2)
Adjusted franking account balance
39
—
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
120 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities
9. Receivables
2024
2023
$m
$m
Trade receivables
105
76
Accrued revenue
278
247
Loss allowance (note 19)
(4)
(4)
Trade receivables
379
319
Income tax receivable
15
—
Receivables from associates and related parties
16
12
Finance lease receivables (note 17)
1
1
Interest receivable
2
2
Other receivables
20
40
Current
433
374
Finance lease receivables (note 17)
7
8
Other receivables
—
19
Non-current
7
27
Trade receivables are non-interest bearing and are generally on 14 to 30 day terms. There are no material trade
receivables past due and not provided for.
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in
an active market are classified as loans and receivables. Trade and other receivables are initially recognised at
fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are stated at
amortised cost less impairment.
10. Payables
2024
2023
$m
$m
Trade payables
87
68
Other payables
468
403
Current
555
471
Other payables
1
9
Non-current
1
9
Trade payables are non-interest bearing and are normally settled on 15 to 30 day terms.
Trade and other payables are recognised when APA Group becomes obliged to make future payments resulting
from the purchase of goods and services. Trade and other payables are initially recognised at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, they are stated at amortised cost.
Payables are recognised inclusive of GST, except for accrued revenue and accrued expense at balance dates
which exclude GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables. GST receivable or GST payable is only recognised once a tax invoice has been received or issued.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 121
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
11. Property, plant and equipment
Freehold
ROU
ROU
land and
Leasehold
Plant and
Work in
land and
plant and
buildings
improvements
equipment
progress
buildings
equipment
– at cost
– at cost
– at cost
– at cost
– at cost
– at cost
Total
$m
$m
$m
$m
$m
$m
$m
Gross carrying amount
Balance at 1 July 2022
280
15
12,268
651
59
17
13,290
Additions
39
2
698
1,127
17
8
1,891
Disposals
—
—
(17)
—
(13)
(5)
(35)
Transfers
—
—
1,145
(1,145)
—
—
—
Balance at 30 June 2023
319
17
14,094
633
63
20
15,146
Balance at 1 July 2023
319
17
14,094
633
63
20
15,146
Additions ¹
—
—
224
1,064
13
13
1,314
Acquired through business
combinations ²
—
—
1,171
70
—
—
1,241
Impairment ³
—
—
(172)
(2)
—
—
(174)
Reclassified to Other Intangible
Assets
—
—
—
(2)
—
—
(2)
Disposals
—
—
(1)
—
—
(3)
(4)
Transfers
25
—
589
(614)
—
—
—
Balance at 30 June 2024
344
17
15,905
1,149
76
30
17,521
Accumulated depreciation and
impairment
Balance at 1 July 2022
(78)
(7)
(3,755)
—
(22)
(8)
(3,870)
Disposals
—
—
15
—
13
5
33
Depreciation expense (note 5)
(8)
(2)
(528)
—
(11)
(5)
(554)
Balance at 30 June 2023
(86)
(9)
(4,268)
—
(20)
(8)
(4,391)
Balance at 1 July 2023
(86)
(9)
(4,268)
—
(20)
(8)
(4,391)
Impairment ³
—
—
30
—
—
—
30
Disposals
—
—
1
—
—
3
4
Depreciation expense (note 5)
(5)
(2)
(664)
—
(11)
(5)
(687)
Balance at 30 June 2024
(91)
(11)
(4,901)
—
(31)
(10)
(5,044)
Net book value
As at 30 June 2023
233
8
9,826
633
43
12
10,755
As at 30 June 2024
253
6
11,004
1,149
45
20
12,477
1
Includes non-cash capitalised restoration costs following remeasurement of the restoration provision. Refer to note 14 for further details.
2
During the year, APA acquired the Pilbara Energy System business, including the remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint operations.
Refer to note 25 for further details. Property, plant and equipment disclosed in note 25 comprised of $1,241 million recognised on acquisition and $452 million
relating to the Group's pre-existing interest in GGT joint operations.
3
During the year, APA Group impaired the carrying value of the Moomba Sydney Ethane Pipeline (MSEP) due to the customer on this single user pipeline
entering into voluntary administration. Refer to note 13 for further details.
Property, plant and equipment is stated at cost, less accumulated depreciation and impairment losses. Work in
progress is stated at cost. Cost includes expenditure that is directly attributable to the acquisition or construction
of the item.
The right-of-use (ROU) asset is initially measured at cost comprising the initial measurement of the lease liability
(as outlined in note 17) adjusted for any lease payments made before the commencement date and reduced by
any lease incentives received plus initial direct costs incurred in obtaining the lease. Any make good
requirements are recognised and measured under AASB 137 Provisions, Contingent Liabilities and Contingent
Assets and to the extent that the costs relate to a ROU asset these are included in the related ROU asset.
A ROU asset is subsequently measured using the cost model less any accumulated depreciation and any
accumulated impairment losses, and adjusted for any remeasurement of the lease liability. The ROU asset is
depreciated over the term of the lease.
Subsequently, APA Group applies AASB 136 Impairment of Assets to determine whether a ROU asset is impaired
and accounts for any impairment as described in note 13.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
122 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
11. Property, plant and equipment (continued)
Depreciation is provided on property, plant and equipment excluding land. Depreciation is calculated on a
straight-line basis depending on the nature of the asset so as to write off the net cost of each asset over its
estimated useful life.
Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the
shorter, using the straight-line method. The estimated useful lives and depreciation methods are reviewed at the
end of each reporting period, with the effect of any changes recognised on a prospective basis.
Where the ROU asset is adjusted due to changes in the lease liability, the depreciation for the ROU asset is
adjusted on a prospective basis.
The depreciation charge for each period is recognised in profit or loss unless it is included in the cost of another
asset.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets (i.e. assets
that take a substantial period of time to get ready for their intended use or sale) are added to the cost of those
assets until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Critical accounting judgements and key sources of estimation uncertainty – useful lives of non-current assets
APA Group reviews the estimated useful lives of property, plant and equipment at the end of each annual
reporting period. Physical, economic, climate and environmental factors are taken into consideration in
assessing the useful lives of the assets, including but not limited to asset condition and obsolescence, technology
changes, regulatory determinations, government policy, commercial contract lives and renewals, global and
regional gas supply-and-demand, and certain climate-related risks and policies.
Any changes to useful lives or any other estimates or assumptions, including the impact of climate change and
the timing of the energy transition, may affect prospective depreciation rates, asset carrying values and
restoration provisions.
The impact of the above indicators and other factors that may emerge are uncertain at this time and difficult to
predict. Refer to note 13 for additional critical judgements that underpin APA’s assessments in relation to the
potential impact of climate transition risks on APA Group’s portfolio of assets which may affect asset carrying
values and prospective depreciation rates.
Energy Infrastructure Assets
In FY23 APA completed a detailed review of the estimated useful lives of its Energy Infrastructure assets giving
consideration to APA’s Net Zero commitments, goals and targets together with APA’s most recent commercial,
operational, and technical outlooks to reduce stranded asset risk. Effective from this financial year, all gas
infrastructure and electricity generation and transmission assets have a maximum useful life end date of FY60
and FY57 respectively.
As at 30 June 2024, the following estimated useful lives from the date of construction are used in the calculation
of depreciation:
•
Buildings
30 – 50 years;
•
Compressors
10 – 50 years;
•
Gas transportation systems
10 – 80 years;
•
Meters
20 – 30 years;
•
Power generation facilities
3 – 36 years;
•
Gas processing facilities
10 – 25 years;
•
Other plant and equipment
3 – 20 years;
•
ROU land and buildings
1 – 40 years; and
•
ROU property, plant and equipment
1 – 4 years.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 123
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. Goodwill and intangibles
2024
2023
$m
$m
Goodwill
Balance at beginning of financial year
1,184
1,184
Acquired through business combinations (Note 25)
698
—
Balance at end of financial year
1,882
1,184
Goodwill acquired in a business combination is initially measured at cost and subsequently at cost less
accumulated impairment.
Allocation of goodwill to cash-generating units
Goodwill has been allocated to individual cash-generating units for impairment testing purposes. The perimeter
of the cash-generating units may change as a result of business combinations or changes in business direction.
The East Coast Grid is an interconnected pipeline network that includes, inter alia, the Wallumbilla Gladstone,
Moomba Sydney, Roma Brisbane, Carpentaria Gas and South West Queensland pipelines and the Victorian
Transmission System. Since the acquisition of the South West Queensland Pipeline to complete the formation of
APA’s East Coast Grid in December 2012, APA has installed facilities to enable bi-directional transportation of gas
to meet the demand of our major customers who now typically operate portfolios of gas supply and demand.
Through the provision of multi-asset services, bi-directional transportation, capacity trading and gas storage and
parking facilities, APA’s East Coast Grid delivers options for customers to choose from, and move gas between,
around 60 receipt points and over 220 delivery points on the east coast of Australia. The East Coast Grid is
categorised as an individual cash-generating unit.
The Pilbara Energy System business is underpinned by contracted operational assets along the Goldfields Gas
Pipeline and a significant development pipeline of projects in the Western Australia’s Pilbara region,
complementing APA’s existing development and delivery capability in the Pilbara region. The acquisition of the
remaining 11.8% interest in Goldfields Gas Transmission joint operations enables new product offerings and
increased supply reliability. Following the acquisition of the Pilbara Energy System business on 1 November 2023,
the goodwill arising from the acquisition has been allocated to the Pilbara Energy System and the Goldfields Gas
Pipeline cash-generating unit, which is comprised of the Goldfields Gas Pipeline, Eastern Goldfields Pipeline,
Northern Goldfields Interconnect Pipeline and laterals.
Refer to note 13 for critical accounting judgements and key sources of estimation uncertainty relating to
impairment of assets.
The carrying amount of goodwill allocated to cash-generating units that are significant individually or in
aggregate are as follows:
2024
2023
$m
$m
Asset Management business
22
22
Energy Infrastructure
East Coast Grid
1,061
1,061
North-West Power System
43
43
Pilbara Energy System ¹
717
19
Other energy infrastructure ²
39
39
1,882
1,184
1
Comprised of the goodwill arising from the acquisition of Pilbara Energy System business ($698 million) and the existing goodwill in the Goldfields Gas
Pipeline cash-generating unit ($19 million). FY23 comparative goodwill amount relating to Goldfields Gas Pipeline cash-generating unit ($19 million) has been
reclassified from Other energy infrastructure to conform to current year presentation.
2
Primarily represents goodwill relating to the Pilbara Pipeline System ($33 million).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
124 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. Goodwill and intangibles (continued)
Software, licences, contract and other intangibles
Software and
Development
Work in
Contract
Licenses
assets
progress
and other
– at cost
– at cost
– at cost
– at cost ¹
Total
$m
$m
$m
$m
$m
Gross carrying amount
Balance at 1 July 2022
110
—
17
3,594
3,721
Additions
—
—
12
2
14
Transfer
18
—
(18)
—
—
Balance at 30 June 2023
128
—
11
3,596
3,735
Balance at 1 July 2023
128
—
11
3,596
3,735
Additions
2
4
37
—
43
Acquired through business combinations ²
1
125
—
1,224
1,350
Reclassified from Property, Plant and Equipment
—
—
2
—
2
Transfer
3
—
(3)
—
—
Balance at 30 June 2024
134
129
47
4,820
5,130
Accumulated amortisation
Balance at 1 July 2022
(80)
—
—
(1,329)
(1,409)
Amortisation expense (note 5)
(14)
—
—
(182)
(196)
Balance at 30 June 2023
(94)
—
—
(1,511)
(1,605)
Balance at 1 July 2023
(94)
—
—
(1,511)
(1,605)
Amortisation expense (note 5)
(14)
—
—
(218)
(232)
Balance at 30 June 2024
(108)
—
—
(1,729)
(1,837)
Net book value
As at 30 June 2023
34
—
11
2,085
2,130
As at 30 June 2024
26
129
47
3,091
3,293
1
Includes $1,862 million (30 June 2023: $2,033 million) of contract intangibles associated with the acquisition of Wallumbilla Gladstone Pipeline in FY15 (Useful
life: 20 years) and $1,189 million (30 June 2023: $nil) of contract intangibles associated with the acquisition of Pilbara Energy System business in FY24 (Useful
life: 23 to 24 years).
2
During the year, APA acquired the Pilbara Energy System business, including the remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint operations.
Refer to note 25 for further details.
Intangible assets acquired separately are initially measured at cost. Intangible assets acquired in a business
combination are identified and recognised separately from goodwill and are initially recognised at their fair
value at the acquisition date.
Finite life intangible assets are amortised over their useful lives. Intangible assets that are not yet ready for use
are not amortised, and are reviewed annually for impairment or more frequently if there is indication of
impairment. Following initial recognition, intangible assets, other than development assets, are carried at cost
less accumulated amortisation and impairment losses. Development assets are subsequently measured at cost
less accumulated impairment losses.
Amortisation is recognised on a straight-line basis over the estimated useful life of each asset. The estimated
useful life and amortisation method are reviewed at the end of each annual reporting period, with the effects of
any changes in estimate being accounted for on a prospective basis. Amortisation expense is a non-cash item,
and is included in the line item of depreciation and amortisation expense in the statement of profit or loss and
other comprehensive income.
The following useful lives are used in the calculation of amortisation:
•
Contract and other intangibles
1 – 24 years;
•
Software
4 – 7 years; and
•
Licences
4 years.
Software and Licenses
Software is measured at cost less accumulated amortisation and impairment losses. Cost includes expenditure
that is directly attributable to the acquisition or development of software.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 125
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. Goodwill and intangibles (continued)
Licences are carried at cost less any accumulated amortisation and impairment losses.
Contract and other intangibles
APA Group holds various third party operating and maintenance contracts, power purchase agreements and
gas transportation agreements. The combined gross carrying amount of $4,820 million amortises over terms
ranging from 1 to 24 years. Useful life is determined based on the underlying contractual terms.
Development assets
Expenditure on development activities is capitalised as intangible assets if the project is assessed to be
technically and commercially feasible and the Group intends to complete the project for use or for sale.
The Group's development assets comprised of a portfolio of projects under development, including solar farm,
wind farm, battery storage and transmission line developments. The development costs capitalised are
comprised of costs incurred directly on the projects and the costs ascribed to the projects as part of the fair
value attribution on acquisition.
For projects whereby the conditions for recognition as a development asset are not met, the development
project costs are expensed in the period in which they are incurred.
No amortisation is charged during the development phase. At the point construction commences, the
accumulated costs cease to be classified as development assets and are transferred to property, plant and
equipment as work in progress. Once the asset is in operation, depreciation will be recognised over the expected
useful life of the asset. At the point a project is no longer expected to reach the construction phase, the carrying
amount of the project is impaired.
13. Impairment of non-financial assets
APA Group tests goodwill for impairment at least annually or whenever there is an indication that the asset may
be impaired. Other non-financial assets with finite useful lives are assessed for indicators of impairment at least
annually. Assets other than goodwill that have previously reported an impairment are reviewed for possible
reversal of the impairment at each reporting period.
If the asset does not generate independent cash inflows and its value in use cannot be estimated to be close to
its fair value, the asset is tested for impairment as part of the cash-generating unit to which it belongs.
Assets are impaired if their carrying value exceeds their recoverable amount. The recoverable amount of an
asset or cash-generating unit is determined as the higher of its fair value less costs of disposal or value-in-use.
Determining whether identifiable intangible assets and goodwill are impaired requires an estimation of the
value-in-use or fair value of the cash-generating units.
Value-in-use calculations require APA Group to estimate the future cash flows expected to arise from the asset
or cash-generating units and apply suitable discount rates in order to calculate the present value of cash-
generating units. These estimates and assumptions are reviewed on an ongoing basis.
Fair value less costs to dispose calculations utilise comparable market transactions less estimated costs of
disposal. When the recoverable amount is measured by reference to fair value less costs of disposal, the
valuation is further classified in accordance with the fair value hierarchy.
For the 2024 and 2023 reporting periods, apart from the recently acquired Pilbara Energy System which was
tested based on the acquisition model (fair value less cost to sell calculation), the recoverable amount of the
Group's cash-generating units was determined based on value-in-use calculations. The Group's value-in-use
calculations use cash flow projections based on a three year financial business plan and thereafter a further 17
year financial model inclusive of appropriate terminal values. This is the basis of APA Group's forecasting and
planning processes which represents the underlying long term nature of associated customer contracts on
these assets.
Judgement may be required in identifying the Group's cash-generating units, particularly when assets belong to
integrated operations. A summary of APA's main cash-generating units, being the cash-generating units
containing goodwill and intangible assets in development, are disclosed in note 12. Certain non-financial assets
(excluding goodwill) are assessed for impairment on a cash-generating unit basis.
In accordance with the requirements of AASB 136 Impairment of Assets, APA Group performed an annual
impairment test for all cash-generating units to which goodwill had been allocated and reviewed its non-
financial assets other than goodwill for indicators of impairment at the end of the reporting period. Apart from
the impairment of Moomba Sydney Ethane Pipeline asset discussed below, the Group has not identified other
impairment indicators and no other impairment was recognised during the year.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
126 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
13. Impairment of non-financial assets (continued)
Critical accounting judgements and key sources of estimation uncertainty – impairment of assets
The key estimates and assumptions used in the assessment of impairment include but are not limited to: asset
capacity; asset lives; generation and transmission volumes; forecast operating costs and margins; gas field
reserve estimates; for some assets, availability of gas supply from undeveloped gas fields and contingent
resources to meet forecast demand; the effect of inflation; discount rates; customer contract terms and
renewals; residual value; and asset construction costs. Where the key assumptions for the assessment of new
assets such as expected construction costs, expected time to commissioning, expected revenues, expected
operating and capital costs at the time of investment differs from the final outcomes, significant variances to the
key assumptions may cause triggers for impairment.
These assumptions have been determined with reference to historic information, current performance and
expected changes taking into account external information such as market inputs on discount rates, the effects
of inflation within Reserve Bank of Australia's guidance range, the outlook for global and regional gas market
supply-and-demand conditions, internal information such as contract renewals and forecast input costs. Such
estimates may change as new information becomes available.
APA is exposed to a range of climate-related risks and opportunities across its energy infrastructure and
investment portfolios. Risks and opportunities associated with climate change including the transition to a low
carbon economy (“transition risks”) are assessed and considered as part of APA’s policy, strategy, and
commercial management practices. APA is committed to embedding consideration of its climate-related goals,
targets and commitments as outlined in its Climate Transition Plan, as well as climate risks, into its business
strategy, processes and decision-making. APA will disclose progress against its commitments and Climate
Transition Plan in accordance with the Taskforce for Climate Related Financial Disclosures.
APA continues to develop its assessment of the potential physical impacts and transition risks of climate change
which may have a material impact on the Australian energy market and may result in a material change to APA’s
estimated cash inflows and the carrying values of APA’s asset portfolio. APA has included estimates for the
potential impacts of climate change in its carrying value assessment based on its current understanding,
however recognises that there is an increased pace of change in the energy industry including continuously
evolving government policy and market regulation, and will continue to review and update its estimates,
assumptions and judgements, utilising inputs from external experts where necessary.
Cash flow projections include the estimated impact of mandated government climate policies, such as the
Safeguard Mechanism. Future changes in government climate policies may impose significant costs on APA and
its customers and limit future investment in the Australian energy market such as the development of new gas
fields. APA does not consider the potential physical impacts and transition risks of climate change on the carrying
value of its existing assets to be significant based on the estimated profile of long-term cash flow returns.
Cash flows are estimated for a period of up to 20 years, and for many assets include a terminal value, which
assumes steady to slightly declining cash flows over time, recognising the long term nature of the assets. The
pre-tax discount rates used are 8.3% p.a. (2023: 7.5% p.a.) for Energy Infrastructure assets and Asset Management
assets.
For fully regulated assets, cash flows have been extrapolated on the basis of existing transportation contracts
and government policy settings, and expected contract renewals. APA Group has assumed prudent capital and
operating expenditure, appropriate regulated rates of return, and forecast inflation over the existing and renewal
contract terms. These expected cash flows are factored into the regulated asset base and do not exceed
management's expectations of the long-term average growth rate for the market in which the cash generating
unit operates.
For non-regulated assets, with the exception of the recently acquired Pilbara Energy System, APA Group has
assumed no capacity expansion and firming costs beyond installed and committed levels; utilisation of capacity
is based on existing contracts and renewals, government policy settings and APA Group’s expected market
outcomes. The Pilbara Energy System was tested for impairment based on the acquisition investment model,
which is predicated on the execution of a renewable-focused development pipeline and the related
assumptions on expansion of capacity and revenue contracting over time. At 30 June 2024, there are no
reasonably possible changes in key assumptions that would, in isolation, result in a material impairment to the
Group.
Demand for capacity is reviewed regularly. As contracts mature, to the extent there is supportable demand, it is
assumed that the majority of the capacity is resold at commercially acceptable pricing levels.
Future regulatory changes and legislative developments to both APA's fully regulated and non-regulated assets
may result in a material change to estimated cash inflows and the carrying value of these assets. In determining
the recoverable amounts of the assets that are currently subject to regulatory review or determination,
judgemental assumptions are made regarding the regulatory outcome which may not be realised. In the event
that future regulatory outcomes vary from these assumptions, the recoverable amounts of these assets could
change materially.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 127
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
13. Impairment of non-financial assets (continued)
For certain assets single counterparty risk is more prevalent. The FY24 carrying value review includes key
estimates, assumptions and judgements regarding the recontracting of pipeline capacity including tariffs and
tenure for these assets, which may not be realised. Any future changes to these estimates, assumptions and
judgements may result in a material change to APA’s estimated cash inflows and the carrying values of certain
APA assets.
Moomba Sydney Ethane Pipeline (MSEP)
During the year, the Group recognised a non-cash impairment charge of $144 million, which represented a full
write-down of the property, plant and equipment of the MSEP. This has been disclosed as a significant item within
the Energy Infrastructure Segment.
The MSEP is a single user pipeline, configured to transport ethane to plastics manufacturer Qenos Pty Ltd, which
entered into Voluntary Administration during the year and announced the expected closure of its manufacturing
facility requiring the ethane from MSEP.
APA is performing a detailed evaluation of the potential alternative uses for the MSEP, including the possible
conversion of the asset to transport and store natural gas, to service the growing demand for capacity on APA's
East Coast Gas Grid. The alternative use assessment has not been completed at the date of the finalisation of the
financial statements. Due to the associated uncertainty, the recoverable amount of MSEP was estimated in its
current condition based on value-in-use calculations, assuming that MSEP will not be utilised for the foreseeable
future.
APA has applied a pre-tax discount rate of 8.3% (FY23: 7.5%) to the projected cashflows. The decision regarding the
future use of the asset could result in a material change to the recoverable amount and therefore potential
reversal of the impairment recognised.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
128 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
14. Provisions
2024
2023
$m
$m
Employee benefits
151
158
Other
9
1
Current
160
159
Employee benefits
13
21
Restoration provision
373
92
Non-current
386
113
Employee benefits
Incentives
62
47
Cash settled long-term incentives
—
3
Leave balances
70
60
Other employee provisions
19
48
Current
151
158
Cash settled long-term incentives
—
1
Defined benefit liability (note 16)
2
10
Leave balances
11
10
Non-current
13
21
A provision is recognised when there is a legal or constructive obligation as a result of a past event, it is probable
that future economic benefits will be required to settle the obligation and the amount of the provision can be
measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the financial year, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is probable that recovery will be received and the
amount of the receivable can be measured reliably.
Restoration provision
Provisions for the costs to restore leased assets to their original condition, as required by the terms and
conditions of the lease, are recognised when the obligation is incurred, at the best estimate of the expenditure
that would be required to restore the assets.
Provision for future restoration costs related to the Group’s energy infrastructure assets is the best estimate of the
present value of the expenditure required to settle the restoration obligation, based on current legal
requirements and technology.
The Group’s restoration cost estimates include a risk adjustment and are inflated to the estimated asset closure
date using a long-term inflation rate. The cost estimates are discounted using risk-free discount rates based on
Government bond rates, with a maturity date aligned with the estimated timing of restoration cash flows.
The Group’s restoration provisions are reviewed regularly, with any changes in the estimate reflected in the
present value of the restoration provision at each reporting date, and a corresponding change in the cost of the
associated asset. In the case of an addition to the cost of an asset, the Group considers whether there is an
indication that the new carrying value of the asset is not fully recoverable. If any such indication exists, an
impairment test is performed. In the event the restoration provision is reduced, the cost of the related asset is
reduced by an amount not exceeding the asset carrying value.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 129
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
14. Provisions (continued)
Movements in the restoration provision during the financial year are set out below:
Restoration
Provision
$m
Balance at 1 July 2023
92
Derecognised during the year
(5)
Unwinding of discount
9
Increases to existing and new provisions ¹
222
Acquired through business combination ²
55
Balance at 30 June 2024
373
1
Primarily relates to changes in restoration cost estimates and the impact of change in discount rate.
2
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). Refer to note 25 for further details.
Critical accounting judgements and key sources of estimation uncertainty – Restoration Provision
APA estimates the future restoration costs of its energy infrastructure assets at the time of installation of the
assets and reviews these cost estimates periodically. In many instances, decommissioning of these assets will
occur many years into the future. As such, the estimate of future restoration costs requires judgemental
assumptions regarding the timing of restoration activities, environmental legislation and regulations, the extent
of restoration activities required and the available technologies.
The Group’s restoration obligations are based on the requirements of, and compliance with, the relevant
regulations which vary for different State jurisdictions. The estimated future restoration costs include judgemental
assumptions that assume certain parts of infrastructure assets remain in-situ, and that regulatory approval is
obtained where arrangements are satisfactory to the regulator. The consideration of the extent to which
infrastructure assets will remain in-situ is inherently subjective. This assumption is reviewed as part of the Group's
periodic review of restoration provisions. Ongoing assessment of the extent of restoration activities is performed
as part of the Group's periodic review of Environmental Plans.
Whilst the Group’s restoration provision reflects estimates based on current knowledge and information, further
studies and detailed assessment of restoration activities for individual assets will continue to be performed
throughout the life of the asset. Actual costs and cash outflows can materially differ from the current estimates
included in the provision recognised at 30 June 2024 as a result of changes in legislation, changes in
assumptions regarding the extent to which infrastructure assets will remain in-situ, prices, site conditions, future
studies, timing of restoration and development of new technologies.
In addition, the extent, cost and timing of future restoration activities may change in the future as a result of
increased regulatory scrutiny and the energy transition. For example, the energy transition may result in
restoration activities occurring earlier than expected. Restoration dates are based on the useful lives of the
individual assets. The estimated timing of restoration activities will continue to be reviewed as part of the Group’s
annual review of its assets’ estimated useful lives. APA Group continues to monitor the uncertainty around climate
change risks to assess if changes to restoration provisions should be recognised.
Employee benefits provision
Provision is made for benefits accruing to employees in respect of wages and salaries, incentives, annual leave
and long service leave when it is probable that settlement will be required.
Provisions made in respect of employee benefits expected to be settled within 12 months, are recognised for
employee services up to reporting date at the amounts expected to be paid when the liability is settled.
Provisions made in respect of employee benefits which are not expected to be wholly settled within 12 months
are measured as the present value of the estimated future cash outflows using a discount rate based on the
corporate bond yield in respect of services provided by employees up to reporting date.
Critical accounting judgements and key sources of estimation uncertainty - payroll review
In FY22, APA identified certain employees across the Group were not paid in full compliance with the Group’s
obligations under APA’s enterprise agreements (“EA’s”). The review identified payment errors to employees subject
to these EA’s. Included in employee benefits provisions is the provision for the payroll review, which represents
APA's estimate of the historical payment errors, less payments completed to 30 June 2024.
The calculations of the employee payment errors involve a substantial volume of data, a high degree of
complexity, interpretation and estimation assumptions. APA has self disclosed information relating to the review
to the Fair Work Ombudsman. Detailed analysis of the seven year period subject to review is substantially
complete and the results of the analysis are reflected in the provision as at 30 June 2024.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
130 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
14. Provisions (continued)
The provision also includes an estimate of any payment errors to 30 June 2024. Determining the historical
employee payment errors requires consideration of numerous clauses of the EA’s and related payroll source
documentation, across each year of the review period, for every current and former employee who may have
been impacted.
Critical accounting estimates and judgements have been applied to determine the extent of the provision
required. Changes to any of these estimates and judgements have the potential to result in a future adjustment
to the provision in subsequent periods as the review continues.
15. Other non-current assets
2024
2023
$m
$m
Line pack gas
23
23
Gas held in storage
5
5
Defined benefit asset (note 16)
7
6
35
34
16. Employee superannuation plans
All employees of APA Group are entitled to benefits on retirement, disability or death from an industry sponsored
fund, or an alternative fund of their choice. APA Group has three plans with defined benefit sections (due to the
acquisition of businesses) and a number of other plans with defined contribution sections. The defined benefit
sections provide lump sum benefits upon retirement based on years of service. The defined contribution sections
receive fixed contributions from APA Group and APA Group's legal and constructive obligations are limited to
these amounts.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligations were
determined at 30 June 2024. The present value of the defined benefit obligations, and the related current service
cost and past service cost, were measured using the projected unit credit method.
The following sets out details in respect of the defined benefit plans only:
2024
2023
$m
$m
Amounts recognised in the statement of profit or loss and other comprehensive income
Current service cost
2
2
Components of defined benefit costs recognised in profit or loss (note 5)
2
2
Actuarial gain on defined benefit plan
2
8
Actual return on plan assets excluding interest income
5
(3)
Components of defined benefit remeasurements recognised in other comprehensive income
7
5
Amounts recognised in the statement of financial position
Fair value of plan assets
139
133
Present value of benefit obligation
(134)
(137)
Defined benefit asset – non-current (note 15)
7
6
Defined benefit liability – non-current (note 14)
(2)
(10)
Opening defined benefit obligation
137
143
Current service cost
2
2
Interest cost
7
6
Actuarial gain
(2)
(8)
Benefits paid
(10)
(6)
Closing defined benefit obligation
134
137
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 131
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
16. Employee superannuation plans (continued)
Movements in the present value of the plan assets in the current period were as follows:
2024
2023
$m
$m
Opening fair value of plan assets
133
135
Interest income
7
6
Actual return on plan assets excluding interest income
5
(3)
Contributions from employer
4
1
Benefits paid
(10)
(6)
Closing fair value of plan assets
139
133
Defined benefit plans
Actuarial gains and losses and the return on plan assets (excluding interest) are recognised immediately in the
statement of financial position with a charge or credit recognised in other comprehensive income in the period
in which they occur. Remeasurement, comprising of actuarial gains and losses and the return on plan assets
(excluding interest), is recognised in other comprehensive income and immediately reflected in retained
earnings and will not be reclassified to profit or loss.
Past service cost is recognised in profit or loss in the period of a plan amendment.
The defined benefit obligation recognised in the consolidated statement of financial position represents the
actual deficit or surplus in APA Group's defined benefit plans. Any asset resulting from this calculation is limited to
the present value of economic benefits available in the form of refunds and reductions in future contributions to
the plan.
Key actuarial assumptions used in the determination of the defined benefit obligation include a discount rate of
5.6% gross of tax (2023: 5.4%), based on the corporate bond yield curve published by Milliman, an expected salary
increase rate of 3.8% (2023: 4.0%), and pension indexation rate of 2.8% (2023: 3.0%). The sensitivity analysis below
has been determined based on reasonable possible changes of the respective assumptions occurring at the
end of the reporting period, while holding all other assumptions constant:
•
If the discount rate increases (decreases) by 0.5%, the defined benefit obligation would decrease by $7 million
(increase by $7 million).
•
If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by
$1 million (decrease by $1 million).
•
If the expected pension indexation rate increases (decreases) by 0.5%, the defined benefit obligation would
increase by $6 million (decrease by $6 million).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation to one another as some of the
assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same as
that applied in calculating the defined benefit obligation liability recognised in the statement of financial position.
APA Group expects to pay $6 million in contributions to the defined benefit plans during the year ending 30 June
2025.
Defined contribution plans
Contributions to defined contribution plans are expensed when incurred. The percentage rate for
superannuation guarantee contribution by APA Group is 11.5% from 1 July 2024, and eventually to 12% from 1 July
2025.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
132 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
17. Leases
APA Group as a lessee
The APA Group lease obligations are primarily related to commercial office leases and motor vehicles.
2024
2023
$m
$m
Lease liabilities
Not longer than 1 year
23
32
Longer than 1 year but not longer than 5 years
48
79
Longer than 5 years
9
24
Minimum future lease payments
80
135
Less: Future finance cost
(10)
(72)
Present value of the future lease payments
70
63
Included in the consolidated statement of financial position as part of:
Current lease liabilities
20
16
Non-current lease liabilities
50
47
70
63
APA Group has no material short-term leases, lease for low-value assets or variable lease payments.
The lease liability is initially measured at the present value of future lease payments at the commencement date,
comprising the following:
•
Fixed payments, including in-substance fixed payments;
•
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date (e.g. payments which vary due to changes in CPI, or commodity prices);
•
Amounts expected to be payable by the lessee under residual value guarantees, purchase options and
termination penalties (where relevant); and
•
Extension options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 133
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
17. Leases (continued)
APA Group as a lessee (continued)
To calculate the present value, the future lease payments are discounted using the interest rate implicit in the
lease (IRIL), if the rate is readily determinable. If the IRIL cannot be readily determined, the incremental borrowing
rate (IBR) at the commencement date is used. The IBR is calculated based on the prevailing swap rate for a tenor
that closely aligns with the term of the lease and then adjusted for APA Group credit spreads in a currency that
matches the currency of the liability.
Subsequently, the lease liability is measured in a manner similar to other financial liabilities, at amortised cost
using the effective interest rate method. The liability is remeasured to reflect any reassessment of lease
payments or lease modifications, or to reflect revised in-substance fixed lease payments.
Variable payments other than those included in the measurement of the lease liability above (i.e. those not
based on an index or rate) are recognised in the statement of profit or loss in the period in which the event or
condition that triggers those payments occur.
Short term leases (i.e. where the lease term is less than 12 months) and low-value asset leases are recognised as
an expense in the statement of profit or loss on a straight-line basis.
Total cash outflow for leases amounted to $18 million (FY23: $17 million), excluding payments for short term leases,
low-value asset leases and variable payments leases.
APA Group as a lessor
Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards
incidental to the ownership of the leased asset to the lessee. All other leases are classified as operating leases.
Finance lease receivables relate to the lease of one pipeline lateral, being Dampier to Bunbury Natural Gas
Pipeline.
2024
2023
$m
$m
Finance lease receivables
Not longer than 1 year
2
2
Longer than 1 year and not longer than 5 years
7
7
Longer than 5 years
2
4
Minimum future lease payments receivable ¹
11
13
Less: unearned finance lease receivables
(3)
(4)
Present value of lease receivables
8
9
Included in the consolidated statement of financial position as part of:
Current trade and other receivables (note 9)
1
1
Non-current receivables (note 9)
7
8
8
9
1
Minimum future lease payments receivable include the aggregate of all lease payments receivable and any guaranteed residual.
APA Group does not have any operating leases where it is the lessor.
Amounts due from a lessee under finance leases are recorded as receivables. Finance lease receivables are
initially recognised at amounts equal to the present value of the minimum lease payments receivable plus the
present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance
lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the leases.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
134 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management
APA Group's objectives when managing capital are to safeguard its ability to continue as a going concern whilst
maximising the return to securityholders through the optimisation of the debt to equity structure.
APA Group's overall capital management strategy is to continue to target BBB/Baa2 investment grade credit
ratings through maintaining sufficient flexibility to fund organic growth and investment from internally generated
and retained cash flows, debt funding and, where appropriate, additional equity.
The capital structure of APA Group consists of cash and cash equivalents, borrowings and equity attributable to
securityholders of APA. APA Group's policy is to maintain balanced and diverse funding sources through raising
funds locally and from overseas from a variety of capital markets including bank loan facilities, to meet
anticipated funding requirements. This funding plus operating cash flows are used to maintain and expand APA
Group's assets, make distributions to securityholders, repay maturing debt and meet anticipated funding
requirements.
Controlled entities are subject to externally imposed capital requirements. These relate to the Australian Financial
Services Licence held by APA Group Limited, the Responsible Entity of APA Group, and were adhered to for the
entirety of the 2024 and 2023 periods.
APA Group's capital management strategy takes into consideration the cost of capital and the state of the
capital markets. It remains focused on maintaining BBB/Baa2 investment grade credit ratings. APA Group remains
focused on maintaining BBB/Baa2 investment grade credit ratings.
The main aspects of APA Group's capital management strategy are:
•
Distribution policy balances organic growth capex funding with strong investor returns;
•
Competitive investment hurdle rates;
•
Investment grade credit metrics provides prudent levels of gearing and access to capital markets;
•
Treasury policies ensures strong levels of liquidity and minimises risk; and
•
Insightful communications ensuring strong investor engagement.
APA Group's Funds From Operations (FFO) to Net Debt are better than the minimum threshold levels that Moody's
and Standard & Poor's consider appropriate for APA Group's BBB/Baa2 credit ratings. FFO to Net Debt is a leverage
metric that measures cash flows generated by the business that are available to service debt noting that each
rating agency calculates credit metrics slightly differently using their own proprietary methods. The ability to
service debt and therefore creditworthiness, improves as the percentage of FFO to Net Debt increases (and vice
versa).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 135
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Net debt
Cash and cash equivalents comprise of cash on hand, at call bank deposits and investments in money market
instruments that are readily convertible to known amounts for cash. Cash and cash equivalents at the end of the
financial year as shown in the statement of cash flows are reconciled to the related items in the statement of
financial position detailed in the table below.
Borrowings are recorded initially at fair value less attributable transaction costs and subsequently stated at
amortised cost. Any difference between the initial recognised cost and the redemption value is recognised in the
statement of profit or loss and other comprehensive income over the period of the borrowing using the effective
interest method.
2024
2023
$m
$m
Cash at bank and on hand ¹
475
370
Short-term deposits
201
143
Cash and cash equivalents
676
513
Guaranteed senior notes ²
(1,895)
(200)
Secured third party borrowings ⁴
(5)
—
Other financial liabilities
(2)
(2)
Less: unamortised borrowing costs
3
—
Current borrowings
(1,899)
(202)
Guaranteed senior notes ²
(7,949)
(10,361)
Guaranteed subordinated notes ³
(800)
—
Guaranteed bank loans
(2,250)
(1,000)
Secured third party borrowings ⁴
(97)
—
Other financial liabilities
(3)
(6)
Less: unamortised borrowing costs
76
46
Non-current borrowings
(11,023)
(11,321)
Total borrowings
(12,922)
(11,523)
Current lease liabilities
(20)
(16)
Non-current lease liabilities
(50)
(47)
Total lease liabilities
(70)
(63)
Net debt
(12,316)
(11,073)
1
The amount shown in cash and cash equivalents includes $2 million not available for general use as at 30 June 2024 (30 June 2023: $2 million).
2
Represents JPY MTN of ¥10,000 million, GBP MTN of £1,379 million, EUR MTN of €2,350 million, and USD denominated 144a notes of US$2,250 million measured at
the exchange rate at reporting date (2023: Represents JPY MTN of ¥10,000 million, GBP MTN of £1,600 million, EUR MTN of €2,350 million and USD denominated
144a notes of US$2,250 million measured at the exchange rate at reporting date, and AUD MTN of A$200 million). Refer to note 19 for details of interest rates
and maturity profiles.
3
Represents EUR Hybrid Notes of €500 million measured at the exchange rate at reporting date. Refer to note 19 for details of interest rate and maturity profile.
4 On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). The acquisition included secured third party loan facilities with concessional interest rates.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
136 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Net debt (continued)
Reconciliation of net debt
Cash and
cash
Borrowings
Borrowings
Lease
equivalents
Current
Non-Current
Liabilities
Net debt
$m
$m
$m
$m
$m
Net debt as at 1 July 2022
940
(3)
(10,902)
(57)
(10,022)
Cash movements
(427)
3
—
17
(407)
Non cash changes — leases
—
—
—
(23)
(23)
Foreign exchange movements on debt translation
—
—
(619)
—
(619)
Transfer from non-current to current
—
(202)
202
—
—
Movement of deferred borrowing costs
—
—
(2)
—
(2)
Net debt as at 30 June 2023
513
(202)
(11,321)
(63)
(11,073)
Net debt as at 1 July 2023
513
(202)
(11,321)
(63)
(11,073)
Cash movements ¹
163
200
(1,718)
18
(1,337)
Non cash changes — leases
—
—
—
(25)
(25)
Non cash changes — acquisition ²
—
(2)
(66)
—
(68)
Foreign exchange movements on debt translation
—
73
117
—
190
Transfer from non-current to current
—
(1,969)
1,969
—
—
Movement of deferred borrowing costs ³
—
1
(4)
—
(3)
Net debt as at 30 June 2024
676
(1,899)
(11,023)
(70)
(12,316)
1
Cash movements include the proceeds from the EUR Hybrid Notes of €500 million and Syndicated facilities ($1,250 million) executed in November 2023,
repayment of 2016 ATMN in October 2023, 2012 GBP Bond in May 24 and secured third party borrowings.
2
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). The acquisition included secured third party loan facilities with concessional interest rates. Refer to note 25 for further
details.
3
Movement of deferred borrowing costs during the year include the non-cash impact of the remeasurement of secured third party borrowings.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 137
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Net debt (continued)
2024
2023
$m
$m
Financing facilities available
Total facilities
Guaranteed senior notes ¹
9,844
10,561
Guaranteed subordinated notes ²
800
—
Guaranteed bank loans ³
2,250
1,000
Bank borrowings ⁴
1,600
1,600
Secured third party borrowings ⁵
102
—
14,596
13,161
Facilities used at balance date
Guaranteed senior notes ¹
9,844
10,561
Guaranteed subordinated notes ²
800
—
Guaranteed bank loans ³
2,250
1,000
Bank borrowings ⁴
—
—
Secured third party borrowings ⁵
102
—
12,996
11,561
Facilities unused at balance date
Guaranteed senior notes ¹
—
—
Guaranteed subordinated notes ²
—
—
Guaranteed bank loans ³
—
—
Bank borrowings ⁴
1,600
1,600
Secured third party borrowings ⁵
—
—
1,600
1,600
1
Represents JPY MTN of ¥10,000 million, GBP MTN of £1,379 million, EUR MTN of €2,350 million, and USD denominated 144a notes of US$2,250 million measured at
the exchange rate at reporting date (2023: Represents JPY MTN of ¥10,000 million, GBP MTN of £1,600 million, EUR MTN of €2,350 million and USD denominated
144a notes of US$2,250 million measured at the exchange rate at reporting date, and AUD MTN of A$200 million). Refer to note 19 for details of interest rates
and maturity profiles.
2
Represents EUR Hybrid Notes of €500 million measured at the exchange rate at reporting date. Refer to note 19 for details of interest rate and maturity profile.
3
Syndicated facilities executed in June 2022 ($1,000 million) and November 2023 ($1,250 million).
4 Bilateral facilities comprising $500 million maturing in July 2025, $400 million maturing in August 2027 and $700 million maturing in December 2025.
5
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). The acquisition included secured third party loan facilities with concessional interest rates. Refer to note 25 for further
details.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
138 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management
APA Group's Treasury team is responsible for the overall management of APA Group’s capital raising activities,
liquidity, lender relationships and engagement, debt portfolio management, interest rate and foreign exchange
hedging, credit rating maintenance and third party indemnities (bank guarantees) within risk management
parameters approved by the Audit and Finance Committee (AFC) and reviewed by the Board.
Based on the Treasury Risk Management Policy, APA Group's activities generate financial instruments comprising
of cash, receivables, payables and interest bearing liabilities which expose it to various risks as summarised
below:
(a) Market risk including currency risk, interest rate risk and price risk;
(b) Credit risk; and
(c) Liquidity risk.
Risk
Sources
Risk management framework
Financial exposure
Market
Commercial transactions in
foreign currency and funding
activities
The AFC approves written principles for
overall risk management, as well as policies
covering specific areas such as liquidity
risk, funding risk, foreign currency risk,
interest rate risk and credit risk. APA Group's
AFC ensures there is an appropriate Risk
Management Policy for the management
of treasury risk and compliance with the
policy through the review of monthly
reporting to the Board from the Corporate
Treasury team.
Refer to 19 (a) Market risk section.
Credit
Cash, receivables, interest bearing
liabilities and hedging
The carrying amount of financial assets
recorded in the financial statements, net
of any collateral held or bank guarantees
held by the Group, represents APA Group's
maximum exposure to credit risk in
relation to those assets. Refer to 19 (b)
Credit risk section.
Liquidity
Ongoing business operations,
financial market disruptions and
new investment opportunities
A detailed table shows APA Group's
remaining contractual maturities for its
non- derivative financial liabilities in 19 (c)
Liquidity risk section.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 139
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
(a) Market risk
APA Group's market risk exposure is primarily due to changes in market prices such as interest and foreign
exchange rates. APA Group is also exposed to price risk arising from its forward purchase contracts over listed
equities and electricity price risk arising from electricity contracts for difference. The table below summarises
these risks by nature of exposure and provides information about the risk mitigation strategies being applied:
Nature
Sources of financial exposure
Risk management strategy
Foreign exchange
APA Group's foreign exchange risk
arises from future commercial
transactions (including revenue,
interest payments and principal
debt repayments on long-term
borrowings and the purchases of
capital equipment and operating
costs).
Exchange rate exposures are managed within approved policy
parameters utilising foreign currency forward exchange contracts
(FECs), cross currency swap contracts (CCS) and foreign currency
denominated borrowings. All foreign currency exposure was managed
in accordance with the Treasury Risk Management Policy, including:
•
FECs to hedge the exchange rate risk arising from foreign currency
cash flows, mainly US dollars, derived from revenues, interest
payments and capital equipment purchases;
•
CCS to manage the currency risk associated with foreign currency
denominated borrowings; and
•
Foreign currency denominated borrowings to manage the currency
risk associated with foreign currency denominated revenue and
receivables.
Interest rate
APA Group's interest rate risk is
derived predominately from
borrowings subject to floating
interest rates.
This risk is managed by APA Group by maintaining an appropriate mix
between fixed and floating rate borrowings, through the use of interest
rate swap contracts. Hedging activities are evaluated regularly to align
with interest rate views and defined policy, ensuring appropriate
hedging strategies are applied.
Equity price, electricity
price and volumes
APA Group is exposed to price and
volumes risk arising from its
forward purchase contracts over
listed equities and electricity price
and volumes risk arising from
contracts for difference in
electricity sales agreement and a
network services agreement with
customers.
The equity price risk is managed by forward purchase contracts held to
hedge the long term incentive awards rather than for trading purposes.
APA Group does not actively trade these holdings. Electricity price and
volumes risk is managed with an electricity sales agreement and a
network services agreement with creditworthy counterparties. The key
assumptions of the commercial contracts for difference are provided in
the fair value of financial instrument section.
There has been no change to the nature of the market risks to which APA Group is exposed or the manner in
which these risks are managed and measured.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
140 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Foreign currency risk
Foreign currency forward exchange contracts
To manage foreign exchange risk arising from future commercial transactions such as forecast capital
purchases and operating costs, revenue, interest and debt payments, APA Group uses FECs. Gains and losses
recognised in the cash flow hedge reserve (statement of comprehensive income) on these derivatives will be
released to profit or loss when the underlying anticipated transaction affects the Statement of Profit or Loss or will
be included in the carrying value of the asset or liability acquired.
The carrying amount of APA Group's foreign currency denominated monetary assets, monetary liabilities and
derivative notional amounts at the reporting date is as follows (converted to AUD at the spot rate at reporting
date):
Cross
Forward
Net foreign
Cash & cash
Total
currency
exchange
currency
equivalents
borrowings
swaps
contract
position
2024
$m
$m
$m
$m
$m
US Dollar (USD) ¹
11
(3,375)
(54)
(173)
(3,591)
British Pound (GBP)
—
(2,615)
2,615
1
1
Euro (EUR)
—
(4,578)
4,578
1
1
Japanese Yen (JPY)
—
(93)
93
—
—
Swedish Krona (SEK)
—
—
—
8
8
11
(10,661)
7,232
(163)
(3,581)
Cross
Forward
Net foreign
Cash & cash
Total
currency
exchange
currency
equivalents
borrowings
swaps
contract
position
2023
$m
$m
$m
$m
$m
US Dollar (USD) ¹
14
(3,377)
(1,079)
501
(3,941)
British Pound (GBP)
—
(3,048)
3,048
—
—
Euro (EUR)
—
(3,849)
3,849
2
2
Japanese Yen (JPY)
—
(104)
104
—
—
Swedish Krona (SEK)
—
—
—
10
10
Canadian Dollar (CAD)
—
—
—
2
2
14
(10,378)
5,922
515
(3,927)
1
Foreign currency exposure associated with USD revenue and receivables is used to manage the net foreign currency position (comprising USD denominated
borrowings and forward exchange contracts).
It is the policy of APA Group to hedge 100% of all foreign exchange exposures in excess of US$1 million equivalent
that are certain. Forecast foreign currency denominated revenues and interest payments will be hedged by FECs
on a rolling basis with the objective being to lock in the AUD gross cash flows and manage liquidity.
For the hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life
and underlying currency) of the FECs and their corresponding hedged items are the same, APA Group performs a
qualitative assessment of effectiveness and it is expected that the value of the FECs and the value of the
corresponding hedged items will systematically change in opposite directions in response to movements in the
underlying foreign exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and
APA Group's own credit risk on the fair value of the FECs, which is not reflected in the fair value of the hedged item
attributable to changes in foreign exchange rates. The effect of credit risk does not dominate the value changes
that result from that economic relationship.
As at the reporting date, APA Group has entered into FECs to hedge the foreign currency exposure arising from
anticipated future transactions, which are designated in cash flow hedge relationships.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 141
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
The following table details the FECs outstanding at reporting date:
Cash flow hedges
Contract Value
Average
< 1 year
1 - 2 years
2 - 5 years
> 5 years
Fair value
2024
contract rate
$m
$m
$m
$m
$m
Forecast revenue and associated receivable
Sell USD ¹
0.6827
591
694
900
—
(45)
Forecast capital purchases and operating
costs
Buy USD
0.6759
(25)
—
—
—
—
Buy EUR
0.6036
(1)
—
—
—
—
Buy SEK
6.6059
(4)
(1)
(3)
(1)
—
Forecast foreign currency borrowings
Buy USD ²
0.7090
(1,727)
(101)
(83)
—
109
(1,166)
592
814
(1)
64
1
APA entered into a series of FECs in February 2022 and February 2024 to manage FX exposure up to June 2027 on WGP monthly revenue.
2
APA entered into a series of FEC’s in February 2022 and February 2024 to manage FX exposure up to March 2027 on the bi-annual interest payments on the
USD denominated debt, and the repayment of USD denominated debt in 2025.
Contract Value
Average
< 1 year
1 - 2 years
2 - 5 years
> 5 years
Fair value
2023
contract rate
$m
$m
$m
$m
$m
Forecast revenue and associated receivable
Sell USD ¹
0.7166
574
632
377
—
(104)
Forecast capital purchases and operating costs
Buy USD
0.6844
(93)
—
—
—
2
Buy EUR
0.6260
(1)
—
—
—
—
Buy SEK
6.7881
(5)
(1)
(3)
(2)
—
Buy CAD
0.9166
(2)
—
—
—
—
Forecast foreign currency borrowings
Buy USD ¹
0.7134
(182)
(1,727)
(60)
—
118
291
(1,096)
314
(2)
16
1
APA entered into a series of FECs in February 2022 to manage FX exposure from March 2022 to December 2025 on WGP monthly revenue, the bi-annual
interest payment on the USD denominated debt, and the repayment of the USD denominated debt in 2025.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
142 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Cross currency swap contracts
APA Group enters into cross currency swap contracts to mitigate the risk of adverse movements in foreign
exchange rates in relation to principal and interest payments arising from foreign currency borrowings. APA
Group receives fixed amounts in the various foreign currencies and pays fixed interest rates for the full term of
the underlying borrowings. In certain circumstances borrowings are retained in the foreign currency, or hedged
from one foreign currency to another to match payments of interest and principal against expected future
business cash flows in that foreign currency.
The following table details the cross currency swap contract principal payments due as at the reporting date:
Cash flow hedges
Contract Value
Foreign
Exchange
< 1 year
1 - 2 years
2 - 5 years
> 5 years
2024
currency
rate
$m
$m
$m
$m
Pay AUD / receive foreign currency
2012 GBP Medium Term Notes
AUD/GBP
0.6530
(198)
—
—
—
2015 EUR Medium Term Notes ¹
AUD/EUR
0.6265
—
—
(1,038)
—
2017 US144A
AUD/USD
0.7668
—
—
(1,108)
—
2019 GBP Medium Term Notes
AUD/GBP
0.5388
—
—
—
(742)
2019 JPY Medium Term Notes
AUD/JPY
75.2220
—
—
—
(133)
2020 EUR Medium Term Notes
AUD/EUR
0.5895
—
—
—
(1,018)
2021 EUR Medium Term Notes
AUD/EUR
0.6464
—
—
(928)
(774)
2021 GBP Medium Term Notes
AUD/GBP
0.5530
—
—
—
(452)
2023 EUR Hybrid Notes
AUD/EUR
0.6037
—
—
(828)
—
Pay USD / receive foreign currency
2015 GBP Medium Term Notes
USD/GBP
0.6773
—
—
—
(1,329)
(198)
—
(3,902)
(4,448)
Contract Value
Foreign
Exchange
< 1 year
1 - 2 years
2 - 5 years
> 5 years
2023
currency
rate
$m
$m
$m
$m
Pay AUD / receive foreign currency
2012 GBP Medium Term Notes
AUD/GBP
0.6530
—
(536)
—
—
2017 US144A
AUD/USD
0.7668
—
—
(1,108)
—
2019 GBP Medium Term Notes
AUD/GBP
0.5388
—
—
—
(742)
2019 JPY Medium Term Notes
AUD/JPY
75.2220
—
—
—
(133)
2020 EUR Medium Term Notes
AUD/EUR
0.5895
—
—
—
(1,018)
2021 EUR Medium Term Notes
AUD/EUR
0.6464
—
—
—
(1,702)
2021 GBP Medium Term Notes
AUD/GBP
0.5530
—
—
—
(452)
Pay USD / receive foreign currency
2015 EUR Medium Term Notes
USD/EUR
0.9514
—
—
(1,025)
—
2015 GBP Medium Term Notes
USD/GBP
0.6773
—
—
—
(1,329)
—
(536)
(2,133)
(5,376)
1
APA Group entered into a USD/AUD cross currency swap in February 2024. The combination of the 2015 EUR/USD cross currency swap and the USD/AUD cross
currency swap are designated as a hedge of the 2015 EUR Medium Term Notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 143
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Foreign currency denominated borrowings
APA Group maintains a level of borrowings in foreign currency, or swapped from one foreign currency to another
to match payments of interest and principal against expected future business cash flows in that foreign
currency. This mitigates the risk of movements in foreign exchange rates in relation to principal and interest
payments arising from these foreign currency borrowings as well as future revenues.
Foreign currency sensitivity analysis
The analysis below shows the effect on profit and total equity of retranslating cash, receivables, payables and
interest-bearing liabilities denominated in USD, JPY, GBP, EUR and SEK into AUD, had the rates been 20 percent
higher or lower than the relevant year end rate, with all other variables held constant, and taking into account all
underlying exposures and related hedges. A sensitivity of 20 percent has been selected and represents
management's assessment of the possible change in rates taking into account the current level of exchange
rates and the volatility observed both on an historical basis and on market expectations for possible future
movements.
•
Net profit would increase by $3 million with a 20 percent depreciation of AUD or decrease by $2 million with a
20 percent increase in AUD (2023: increase by $3 million or decrease by $2 million respectively); and
•
Equity reserves would decrease by $869 million with a 20 percent depreciation of the AUD or increase by
$581 million with a 20 percent increase in AUD (2023: decrease by $389 million or increase by $260 million
respectively).
Interest rate risk
APA Group's interest rate risk is derived predominately from borrowings. This risk is managed by APA Group
maintaining an appropriate mix between fixed and floating rate borrowings, through the use of interest rate
swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined policy,
ensuring appropriate hedging strategies are applied.
APA Group’s exposures to interest rate risk on financial liabilities are detailed in the liquidity risk management
section of this note. Interest rate risk relating to APA Group’s financial assets is limited to cash and cash
equivalents amounting to $676 million as at 30 June 2024 (2023: $513 million).
Cross currency swap and interest rate swap contracts
Cross currency swap and interest rate swap contracts have the economic effect of converting borrowings from
floating to fixed rates and/or fixed rate foreign currency to fixed or floating AUD rates on agreed notional principal
amounts enabling APA Group to mitigate the risk of cash flow exposures on variable rate debt held. The fair value
of cross currency swap and interest rate swap contracts at the reporting date is determined by discounting the
future cash flows using the yield curves at reporting date. The average interest rate is based on the drawn debt
balances at the end of the financial year.
There is an economic relationship between the hedged item and the hedging instrument. Based on APA Group’s
qualitative assessment of effectiveness, it is expected that the value of the interest rate swap contracts and the
value of the corresponding hedged items will systematically change in opposite directions in response to
movements in the underlying interest rates. The main source of hedge ineffectiveness in these hedge
relationships is the effect of the counterparty and APA Group’s own credit risk on the fair value of the cross
currency swap and interest rate swap contracts, which is not reflected in the fair value of the hedged item
attributable to the change in interest rates and difference in timing of the future cash flows. The effect of credit
risk does not dominate the value changes that result from that economic relationship.
The following table details the notional principal amounts and remaining terms of the cross currency swap
contracts outstanding as at the end of the financial year:
Weighted average interest rate
Notional principal amount
Fair value
2024
2023
2024
2023
2024
2023
% p.a.
% p.a.
$m
$m
$m
$m
Cash flow hedges - Pay fixed AUD interest - receive floating AUD or fixed foreign currency
Less than 1 year
7.37
—
198
—
44
—
1 year to 2 years
—
7.28
—
536
—
95
2 years to 5 years
4.59
4.82
5,586
2,634
104
134
5 years and more ¹
4.30
4.04
5,697
5,876
(435)
(428)
11,481
9,046
(287)
(199)
1
This amount includes a notional amount of USD 886 million (2023: USD 1.6 billion).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
144 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
The cross currency swap and interest rate swap contracts settle on a quarterly or semi-annual basis. The floating
rate benchmark on the interest rate swaps is Australian BBSW. APA Group will settle the difference between the
fixed and floating interest rate on a net basis.
All cross currency swap and interest rate swap contracts exchanging floating rate interest amounts for fixed rate
interest amounts are designated as cash flow hedges in order to reduce APA Group’s cash flow exposure on
borrowings.
The following tables detail before tax information of APA Group (excluding share of hedge reserves of associates)
regarding derivative financial instruments outstanding at the end of the reporting period, their related hedged
items and the effectiveness of the hedging relationships.
Fair value of hedge instrument
Fair value of hedge item
Cash flow hedge reserve balance
2024
2023
2024
2023
2024
2023
$m
$m
$m
$m
$m
$m
Foreign exchange risk
Hedging foreign currency borrowings (cross
currency swap)
(262)
(224)
312
225
436
788
Hedging revenue and associated receivables
(foreign currency borrowings)
(69)
(69)
69
69
69
69
Hedging revenue and associated receivables
(FECs)
(32)
(76)
32
76
29
73
Hedging foreign currency borrowings (FECs)
95
89
(95)
(89)
25
32
Hedging capital purchases (FECs)
—
2
—
(2)
—
(2)
Interest rate risk
Hedging AUD borrowings (IRS)
(25)
25
26
(24)
26
(24)
(293)
(253)
344
255
585
936
Change in fair values of hedge
instruments ¹
Change in fair values of hedged
items ¹
2024
2023
2024
2023
$m
$m
$m
$m
Foreign exchange risk
Hedging foreign currency borrowings (cross currency swap)
9
7
30
(17)
Hedging revenue and associated receivables (foreign currency
borrowings)
—
(15)
—
15
Hedging revenue and associated receivables (FECs)
14
(20)
(14)
19
Hedging foreign currency borrowings (FECs)
6
18
(6)
(18)
Hedging capital purchases (FECs)
—
3
—
(3)
Interest rate risk
Hedging AUD borrowings (IRS)
(50)
17
50
(16)
(21)
10
60
(20)
1
This table excludes change in fair values of forecast transactions no longer expected to occur.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 145
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Hedge effectiveness gain / (loss) ¹
Balance relating to discontinued
cash flow hedges
2024
2023
2024
2023
$m
$m
$m
$m
Foreign exchange risk
Hedging foreign currency borrowings (cross currency swap)
(1)
(2)
178
—
Hedging revenue and associated receivables (foreign currency
borrowings)
—
—
43
81
Hedging revenue and associated receivables (FECs)
—
—
—
—
Hedging foreign currency borrowings (FECs)
—
—
—
—
Hedging capital purchases (FECs)
—
—
—
—
Interest rate risk
Hedging US$ denominated borrowings (interest rate swap)
—
—
18
23
(1)
(2)
239
104
1
Hedge ineffectiveness gain / (loss) shown is cumulative and recognised in finance cost.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative
and non-derivative instruments held. A 100 basis point increase or decrease is used and represents
management's assessment of the possible change in interest rates over the short term. At reporting date, if
interest rates had been 100 basis points lower or higher and all other variables were held constant, APA Group's
equity reserves would increase by $105 million with a 100 basis point decrease in interest rates or decrease by
$108 million with a 100 basis point increase in interest rates (2023: increase by $29 million or decrease by
$42 million respectively). This is due to the changes in the fair value of derivative interest instruments.
APA Group's profit sensitivity to interest rates remains unchanged during the current year as APA Group has no
unhedged floating rate borrowings outstanding at the end of the financial year. The increase/decrease in equity
reserves is based on 1.00% p.a. increase/decrease in the yield curve at the reporting date.
Price risk – equity price
APA Group is exposed to price risk arising from its forward purchase contracts over listed equities. The forward
purchase contracts are held to hedge long term incentive awards rather than for trading purposes. APA Group
does not actively trade these holdings.
Price risk – electricity price
APA Group is exposed to electricity price risk arising from contracts for difference in an electricity sales
agreement and a network services agreement with customers. The contract guarantees the Group a fixed price
for electricity offtake and contracts to provide network services in exchange, of which, a portion of the fee is fixed
against the price of capacity. The key assumptions of the contract for difference are provided in the fair value of
financial instrument section.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
146 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to APA Group.
Credit risk management
APA Group has adopted the policy of dealing with creditworthy counterparties or obtaining sufficient collateral or
bank guarantees where appropriate as a means of mitigating the risk of loss. For financial investments or market
risk hedging, APA Group's policy is to only transact with counterparties that have a credit rating of A- (Standard &
Poor's)/A3 (Moody's) or higher unless specifically approved by the Board. Where a counterparty's rating falls
below this threshold following a transaction, no other transactions can be executed with that counterparty until
the exposure is sufficiently reduced or their credit rating is upgraded above APA Group's minimum threshold. APA
Group's exposure to financial instrument and deposit credit risk is closely monitored against counterparty credit
limits imposed by the Treasury Risk Management Policy approved by the AFC. These limits are regularly reviewed
by the Board.
Overview of APA Group's exposure to credit risk
In order to minimise credit risk, APA Group categorised exposures according to their degree of risk of default. APA
Group's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate
value of transactions concluded is spread amongst approved counterparties.
APA Group's current credit risk grading framework comprises the following categories:
•
Performing – the counterparty has a low risk of default and does not have any past-due amounts;
•
Doubtful – amount is >30 days past due or there has been a significant increase in credit risk since initial
recognition; and
•
Write-off – there is evidence indicating that the debtor is in severe financial difficulty and APA Group has no
realistic prospect of recovery.
The table below details the credit quality of APA Group's financial assets.
External credit rating
Internal credit rating
ECL method
1
Cash and cash equivalents and cash on deposit
A- (Standard & Poor's)/
A3 (Moody's) or higher
Performing
12-month ECL
Trade receivables
N/A
2
Lifetime ECL
(simplified approach)
Finance lease receivables
N/A
2
Lifetime ECL
(simplified approach)
Contract assets
N/A
2
Lifetime ECL
(simplified approach)
Loans advanced to related parties
N/A
Performing
12-month ECL
Redeemable preference shares (GDI)
N/A
Performing
12-month ECL
1
Lifetime ECL represents the expected credit losses (ECL) that will result from possible default events over the expected life of a financial instrument. In
contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within
12 months after the reporting date.
2
For trade receivables, finance lease receivables and contract assets, APA Group has applied the simplified approach in AASB 9 to measure the loss
allowance at lifetime ECL. APA Group determines the expected credit losses on these items by using a provision matrix, estimated based on historical credit
loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic
conditions. Accordingly, the credit risk profile of these assets is presented based on their past due status in terms of the provision matrix. Note 9 includes
further details on the loss allowance for these assets, respectively, if any.
There is no material ECL for any of the financial assets listed in the table above. Refer to note 9 for further
information.
Cross guarantee
In accordance with a deed of cross guarantee, APA Infrastructure Limited, a subsidiary of APA Group, has agreed
to provide financial support, as and when required, to all wholly-owned controlled entities that have ascended to
the deed with either a deficit in shareholders’ funds or an excess of current liabilities over current assets. The fair
value of the financial guarantee as at 30 June 2024 has been determined to be immaterial and no liability has
been recorded (2023: $nil).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 147
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
(c) Liquidity risk
APA Group has a policy of dealing with liquidity risk which requires an appropriate liquidity risk management
framework for the management of APA Group's short, medium and long-term funding and liquidity management
requirements. Liquidity risk is managed by maintaining adequate cash reserves and banking facilities, by
monitoring and forecasting cash flow and where possible, by arranging liabilities with longer maturities to more
closely match the underlying assets of APA Group.
Detailed in the following table are APA Group's remaining contractual maturities for its financial liabilities
including AUD and foreign currency denominated notes, cross currency swaps and interest rate swaps in
aggregate. The table shows the undiscounted Australian dollar cash flows and includes both interest and
principal cash flows. Rates shown are the coupon rate in the currency of issuance.
Contract Value
Average
interest rate
< 1 year
1 - 5 years
> 5 years
2024
Maturity
% p.a.
$m
$m
$m
Secured financial liabilities
Secured third party borrowings ¹
23-Nov-41
2.25
7
28
57
Secured third party borrowings ¹˒²
23-Nov-46
—
—
—
24
Unsecured financial liabilities
Trade and other payables
555
—
—
Guaranteed bank loans ³
20-May-27
3.77
24
549
—
Guaranteed bank loans ³
20-May-29
3.88
26
605
—
Guaranteed bank loans ³
31-Oct-30
5.05
51
202
825
Guaranteed bank loans ³
31-Oct-33
5.23
36
143
661
Denominated in A$
Other financial liabilities
2
4
—
Guaranteed Senior Notes
Denominated in US$
2015 US 144A ⁴
23-Mar-25
4.20
1,719
—
—
2015 US 144A ⁴
23-Mar-35
5.00
22
90
585
2017 US 144A
15-Jul-27
4.25
59
1,255
—
Denominated in stated foreign currency
2012 GBP Medium Term Notes
26-Nov-24
4.25
205
—
—
2015 GBP Medium Term Notes ⁴
22-Mar-30
3.50
60
238
1,388
2015 EUR Medium Term Notes
22-Mar-27
2.00
45
1,130
—
2019 GBP Medium Term Notes
18-Jul-31
3.13
34
135
826
2019 JPY Medium Term Notes
13-Jun-34
1.03
6
23
161
2020 EUR Medium Term Notes
15-Jul-30
2.00
39
158
1,077
2021 EUR Medium Term Notes
15-Mar-29
0.75
28
1,038
—
2021 EUR Medium Term Notes
15-Mar-33
1.25
29
117
891
2021 GBP Medium Term Notes
15-Mar-36
2.50
19
77
587
Guaranteed Subordinated Notes
Denominated in EUR
2023 EUR Hybrid Notes
09-Feb-29
7.13
77
1,136
—
3,043
6,928
7,082
1
On 1 November 2023, APA Group acquired 100% of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together referred to as
the Pilbara Energy System business). The acquisition included secured third party loan facilities with concessional interest rates. Refer to note 25 for further
details.
2
The repayment obligation of the loan is linked to a cash sweep mechanism that applies once a minimum IRR threshold is met. Based on this mechanism, it is
expected that this loan will be fully repaid by 30/09/2030. However, this is subject to regular adjustment. If this mechanism does not achieve full repayment of
the loan then any remaining balance is to be fully repaid 25 years after project completion as per maturity shown.
3
Bank facilities mature on 20 May 2027 ($500 million limit), 20 May 2029 ($500 million limit), 31 October 2030 ($750 million limit) and 31 October 2033 ($500
million limit). The facilities are fully drawn at reporting date.
4 Facilities are denominated in or fully swapped by way of CCS into USD. Cashflows represent the USD cashflow translated at the USD/AUD spot rate as at
30 June 2024 These amounts are fully hedged by FECs or future USD revenues.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
148 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Contract Value
Average
interest rate
< 1 year
1 - 5 years
> 5 years
2023
Maturity
% p.a.
$m
$m
$m
Unsecured financial liabilities
Trade and other payables
471
—
—
Guaranteed bank loans ¹
20-May-27
3.77
25
574
—
Guaranteed bank loans ¹
20-May-29
3.88
26
105
526
Denominated in A$
Other financial liabilities
3
5
—
Guaranteed Senior Notes ³
Denominated in A$
2016 AUD Medium Term Notes
20-Oct-23
3.75
204
—
—
Denominated in US$
2015 US 144A ²
23-Mar-25
4.20
69
1,720
—
2015 US 144A ²
23-Mar-35
5.00
23
90
608
2017 US 144A
15-Jul-27
4.25
59
1,314
—
Denominated in stated foreign currency
2012 GBP Medium Term Notes
26-Nov-24
4.25
40
555
—
2015 GBP Medium Term Notes ²
22-Mar-30
3.50
60
238
1,449
2015 EUR Medium Term Notes ²
22-Mar-27
2.00
45
1,161
—
2019 GBP Medium Term Notes
18-Jul-31
3.13
34
135
859
2019 JPY Medium Term Notes
13-Jun-34
1.03
6
23
167
2020 EUR Medium Term Notes
15-Jul-30
2.00
39
158
1,117
2021 EUR Medium Term Notes
15-Mar-29
0.75
27
110
956
2021 EUR Medium Term Notes
15-Mar-33
1.25
29
117
920
2021 GBP Medium Term Notes
15-Mar-36
2.50
19
77
606
1,179
6,382
7,208
1
Bank facilities mature or expire on 20 May 2027 ($500 million limit) and 20 May 2029 ($500 million limit). The facilities are fully drawn at reporting date.
2
Facilities are denominated in or fully swapped by way of CCS into USD. Cashflows represent the USD cashflow translated at the USD/AUD spot rate as at
30 June 2023. These amounts are fully hedged by FECs or future USD revenues.
3
Rates shown are the coupon rate in the currency of issuance.
Critical accounting judgements and key sources of estimation uncertainty - fair value of financial instruments
APA Group has financial instruments that are carried at fair value in the statement of financial position. The best
evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active,
APA Group determines fair value by using various valuation models. The objective of using a valuation technique
is to establish the price that would be received to sell an asset or paid to transfer a liability between market
participants. The chosen valuation models make maximum use of market inputs and rely as little as possible on
entity specific inputs. The fair values of all positions include assumptions made as to recoverability based on the
counterparty’s and APA Group’s credit risk.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 149
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
•
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities.
•
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset
or liability that are not based on observable market data (unobservable inputs).
Transfers between levels of the fair value hierarchy occur at the end of the reporting period. There have been no
transfers between the levels during 2024 (2023: none). Transfers between Level 1 and Level 2 are triggered when
there are changes to the availability of quoted prices in active markets. Transfers into Level 3 are triggered when
the observable inputs become no longer observable, or vice versa for transfer out of Level 3.
Fair value of the Group's financial assets and liabilities that are measured at fair value on a recurring basis
The fair values of financial assets and financial liabilities are measured at the end of each reporting period and
determined as follows:
•
The fair values of financial assets and financial liabilities with standard terms and conditions and traded on
active liquid markets are determined with reference to quoted market prices. These instruments are classified
in the fair value hierarchy at Level 1;
•
The fair values of FECs included in hedging assets and liabilities are calculated using discounted cash flow
analysis based on observable forward exchange rates at the end of the reporting period and contract
forward rates discounted at a rate that reflects the credit risk of the various counterparties. These instruments
are classified in the fair value hierarchy at Level 2;
•
The fair values of interest rate swaps, cross currency swaps, equity forwards and other derivative instruments
included in hedging assets and liabilities are calculated using discounted cash flow analysis using observable
market inputs (yield curves, foreign exchange rates, equity prices and historical inflation indices) at the end of
the reporting period and contract rates discounted at a rate that reflects the credit risk of the various
counterparties. These instruments are classified in the fair value hierarchy at Level 2;
•
The fair value of the indexed revenue contract is derived from present value of expected future cash flows
based on observable inflation indices and yield curve at the end of the reporting period. These instruments are
classified in the fair value hierarchy at Level 2;
•
The fair values of other financial assets and financial liabilities (excluding derivative instruments) are
determined in accordance with generally accepted pricing models based on discounted cash flow analysis
using prices from observable current markets discounted at a rate that reflects the credit risk of the various
counterparties. These instruments are classified in the fair value hierarchy at Level 2;
•
The fair value of financial guarantee contracts is determined based upon the probability of default by the
specified counterparty extrapolated from market-based credit information and the amount of loss, given the
default. These instruments are classified in the fair value hierarchy at Level 2; and
•
The carrying value of financial assets and liabilities recorded at amortised cost in the financial statements
approximate their fair value having regard to the specific terms of the agreements underlying those assets
and liabilities.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
150 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Contracts for difference
The financial statements include contracts for difference arising from an electricity sales agreement with a
customer that guarantees the Group a fixed price for electricity offtake for the agreed term and a network
services agreement where the Group exchanges variable inter-regional electricity revenues for a fixed fee based
on capacity. The contracts are at fair value. The fair value of the contracts for difference is derived from internal
discounted cash flow valuation methodology, which includes some assumptions that are not able to be
supported by observable market prices or rates.
In determining the fair value, the following assumptions were used:
•
For the electricity sales agreement, the estimated long term forecast electricity pool prices are applied as
market prices are not readily observable for the corresponding term. Forecast electricity volumes are also
estimated based on an internal forecast output model;
•
For the network services agreement, the variable inter-regional revenues were forecast based on the
interconnector’s historical spot prices and electricity volumes as these inputs are not readily observable;
•
The discount rates are based on observable market rates for risk-free instruments of the appropriate term;
•
Credit adjustments are applied to the discount rates to reflect the risk of default by either the Group or a
specific counterparty. Where a counterparty specific credit curve is not observable, an estimated curve is
applied which takes into consideration the credit rating of the counterparty and its industry; and
•
These instruments are classified in the fair value hierarchy at Level 3.
Changes in any of the aforementioned assumptions may be accompanied by changes in other assumptions
which may have an offsetting impact.
Fair value hierarchy
Level 1
Level 2
Level 3
Total
2024
$m
$m
$m
$m
Financial assets measured at fair value
Interest rate swaps used for hedging
—
22
—
22
Cross currency swap contracts used for hedging
—
217
—
217
Foreign currency forward exchange contracts used for hedging
—
127
—
127
Contracts for difference
—
—
4
4
—
366
4
370
Financial liabilities measured at fair value
Interest rate swaps used for hedging
—
47
—
47
Equity forwards designated as fair value through profit or loss
—
5
—
5
Cross currency swap contracts used for hedging
—
479
—
479
Foreign currency forward exchange contracts used for hedging
—
63
—
63
Contracts for difference
—
—
11
11
Indexed revenue contract
—
14
—
14
—
608
11
619
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 151
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Financial risk management (continued)
Level 1
Level 2
Level 3
Total
2023
$m
$m
$m
$m
Financial assets measured at fair value
Interest rate swaps used for hedging
—
25
—
25
Cross currency swap contracts used for hedging
—
286
—
286
Foreign currency forward exchange contracts used for hedging
—
121
—
121
Contracts for difference
—
—
13
13
—
432
13
445
Financial liabilities measured at fair value
Cross currency swap contracts used for hedging
—
509
—
509
Foreign currency forward exchange contracts used for hedging
—
106
—
106
Indexed revenue contract
—
12
—
12
Contracts for difference
—
—
3
3
—
627
3
630
Reconciliation of Level 3 fair value measurements
2024
2023
$m
$m
Opening balance
10
(2)
Revaluation
(20)
17
Settlement
3
(5)
Closing balance
(7)
10
Fair value measurements of financial instruments measured at amortised cost
The financial liabilities included in the following table are fixed rate borrowings. Other debts held by APA Group
are floating rate borrowings and amortised cost as recorded in the financial statements approximate their fair
values.
Carrying amount
Fair value (Level 2) ¹
2024
2023
2024
2023
$m
$m
$m
$m
Financial liabilities
Unsecured Australian Dollar Medium Term Notes
—
200
—
199
Unsecured Japanese Yen Medium Term Notes
93
104
84
96
Unsecured US Dollar 144A Medium Term Notes
3,367
3,366
3,313
3,231
Unsecured British Pound Medium Term Notes
2,606
3,031
2,268
2,432
Unsecured Euro Medium Term Notes
3,753
3,825
3,268
3,095
Unsecured Euro Hybrid Notes ²
793
—
848
—
10,612
10,526
9,781
9,053
1
The fair values have been determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from
observable current markets, discounted at a rate that reflects APA Group's credit risk. These instruments are classified in the fair value hierarchy at Level 2.
2
In November 2023, APA Group issued EUR 500 million hybrid (AUD 828 million) subordinated debt at 7.125% per annum (swapped to 9.32% per annum fixed AUD
interest rate until February 2029).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
152 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
20. Other financial instruments
Assets
Liabilities
2024
2023
2024
2023
$m
$m
$m
$m
Derivatives at fair value:
Contracts for difference
—
—
11
3
Equity forward contracts
—
—
1
—
Derivatives at fair value designated as hedging instruments:
Cross currency swaps - cash flow hedges ¹
57
22
154
159
Foreign exchange contracts - cash flow hedges
111
17
44
45
Interest rate swaps - cash flow hedges ¹
8
10
5
—
Current
176
49
215
207
Derivatives at fair value:
Contracts for difference
4
13
—
—
Equity forward contracts
—
—
4
—
Indexed revenue contracts
—
—
14
12
Derivatives at fair value designated as hedging instruments:
Cross currency swaps - cash flow hedges
173
288
359
379
Foreign exchange contracts - cash flow hedges
19
104
23
61
Interest rate swaps - cash flow hedges
14
15
43
—
Financial items carried at amortised cost:
Redeemable preference shares ²
10
10
—
—
Non-current
220
430
443
452
1
Derivatives at fair value for Cross currency swaps and Interest rate swaps include interest receivables and payables.
2
Redeemable preference shares relate to APA Group's 20% interest in GDI (EII) Pty Ltd. In December 2011, APA sold 80% of its gas distribution network in South
East Queensland (Allgas) into an unlisted investment entity, GDI (EII) Pty Ltd. At that date GDI issued 52 million Redeemable Preference Shares (RPS) to its
owners. The shares were redeemed in December 2021 and new redeemable preference shares were issued. The shares attract periodic interest payments
and have a redemption date 10 years from issue.
Recognition and measurement
Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost:
•
The financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI):
•
The financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains
or losses recognised in profit or loss to the extent they are not part of a designated hedging relationship.
Derivatives that APA Group does not elect to apply hedge accounting to or do not meet the hedge accounting
criteria, are classified as 'financial assets/liabilities' for accounting purposes and accounted for at FVTPL.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 153
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
20. Other financial instruments (continued)
Fair value measurement
For information about the methods and assumptions used in determining the fair value of financial instruments
refer to note 19.
Hedge accounting
APA Group designates certain hedging instruments, which include derivatives, embedded derivatives and non-
derivatives in respect of foreign currency risk, as either fair value hedges or cash flow hedges. There are no fair
value hedges in the current or prior year, hedges of foreign exchange and interest rate risk are accounted for as
cash flow hedges.
At the inception of the hedge relationship, APA Group formally designates and documents the relationship
between the hedging instrument and the hedged item, along with its risk management objectives and its
strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an
ongoing basis, APA Group expects the hedging instrument is effective in offsetting changes in fair values or cash
flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the
following hedge effectiveness requirements:
•
there is an economic relationship between the hedged item and the hedging instrument;
•
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
•
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item
that APA Group actually hedges and the quantity of the hedging instrument that APA Group actually uses to
hedge that quantity of hedged item.
Derivatives are initially recognised at fair value at the date a derivatives contract is entered into and
subsequently remeasured to fair value at each reporting period. The resulting gain or loss is recognised in profit
or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the
timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a
positive fair value is recognised as a financial asset, a derivative with a negative fair value is recognised as a
financial liability.
The fair value of hedging derivatives is classified as either current or non-current based on the timing of the
underlying discounted cash flows of the instrument. Cash flows due within 12 months of the reporting date are
classified as current and cash flows due after 12 months of the reporting date are classified as non-current.
Cash flow hedges
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are
designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated
under the cash flow hedge reserve, limited to the cumulative change in fair value of the hedged item from
inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or
loss, and is included in the 'finance costs' line item.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to
profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised
hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset
or a non-financial liability, the gains and losses previously recognised in other comprehensive income and
accumulated in equity are removed from equity and included in the initial measurement of the cost of the non-
financial asset or non-financial liability. This transfer does not affect other comprehensive income. Furthermore, if
APA Group expects that some or all of the loss accumulated in the cash flow hedging reserve will not be
recovered in the future, that amount is immediately reclassified to profit or loss.
APA Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to
meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging
instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any
gain or loss recognised in other comprehensive income and accumulated in the cash flow hedge reserve at that
time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast
transaction is no longer expected to occur, the gain or loss accumulated in the cash flow hedge reserve is
reclassified immediately to profit or loss.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
154 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
20. Other financial instruments (continued)
Accounting for the forward element of foreign currency forward exchange contracts and foreign currency
basis spreads of financial instruments
APA Group designates the full change in the fair value of an FEC (i.e. including the forward elements) as the
hedging instrument for all of its hedging relationships involving FECs.
APA Group separates the foreign currency basis spread from a financial instrument and excludes it from the
designation of that financial instrument as the hedging instrument. Changes in the value of the undesignated
aligned foreign currency basis spread associated with cross currency swaps are deferred in other
comprehensive income.
Cash flow hedge and cost of hedging reserve
The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments
deemed effective in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is
recognised in profit or loss only when the hedged transaction impacts the profit or loss, or is included directly in
the initial cost or other carrying amount of the hedged non-financial items.
The cost of hedging reserve represents the effect of the changes in fair value of the forward currency basis
spread of a financial instrument when the foreign currency basis spread of a financial instrument is excluded
from the designation of that financial instrument as the hedging instrument (consistent with APA Group's
accounting policy to recognise the non-designated component of a foreign currency derivative in equity). The
changes in fair value of the foreign currency basis spread of a financial instrument, in relation to a time-period
related hedged item accumulated in the cash flow hedging reserve, are amortised to profit or loss on a rational
basis over the term of the hedging relationship.
2024
2023
$m
$m
Balance at beginning of financial year
(717)
(343)
Gain/(loss) recognised taken to equity:
Loss arising on changes in fair value of hedging instruments
(88)
(643)
Changes in fair value of foreign currency basis spread during the year
43
(62)
Share of hedge reserve of associate
(9)
4
Amount reclassified to P&L for forecast transactions no longer expected to occur ¹
22
—
Amount reclassified to P&L for effective hedges
240
167
Tax effect
(62)
160
Balance at end of financial year
(571)
(717)
1
Amount reclassified to P&L for forecast transactions no longer expected to occur include the hedge reserve opening balance in relation to the cross
currency swaps terminated as result of the GBP 221 million Medium Term Notes buy back in May 2024.
In 2024, the foreign currency basis spread reserve balance at the beginning of the financial year is ($13 million)
and at the end of financial year is $48 million (2023: $13 million at the beginning of the financial year).
Hedge ineffectiveness
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic relationship exists between the hedged item and
hedging instrument.
In hedges of foreign currency capital equipment purchases, ineffectiveness may arise if the timing of the
forecast transaction changes from what was originally estimated, or if there are changes in the credit risk of APA
Group or the derivative counterparty.
Hedge ineffectiveness for cross currency swaps is assessed using the same principles as for hedges of foreign
currency capital equipment purchases. It may occur due to the credit value/debit value adjustment on the swap
contracts which is not matched by the debts.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 155
($13 million)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
20. Other financial instruments (continued)
Impairment of financial assets
In relation to the impairment of financial assets, it is no longer necessary for a credit event to have occurred
before credit losses are recognised. APA Group applies an ECL model to account for ECL and changes in those
ECL at each reporting date to reflect changes in credit risk since initial recognition of a financial asset.
APA Group recognises a loss allowance for ECL on investments in debt instruments that are measured at
amortised cost, for example, loans advanced to related parties and trade receivables. No impairment loss is
recognised for investments in equity instruments. For trade receivables, finance lease receivables and contract
assets, APA Group applies the simplified approach to assessing ECL. Under the simplified approach, ECL on these
financial assets is estimated using a provision matrix. This matrix is based on APA Group’s historical credit losses
and reasonable and supportable information that is available without undue cost.
The amount of ECL under either approach is updated at each reporting date to reflect changes in credit risk
since initial recognition of the respective financial instrument.
APA Group recognises an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account. Aside from the additional
disclosure requirements in note 19, the history of collection rates and forward-looking information that is available
without undue cost or effort shows that APA Group has limited expected loss on collection of debtors or loans.
Significant increase in credit risk
An actual or expected significant deterioration in the financial instrument's external (if available) or internal credit
rating.
Definition of default
When there is a breach of financial covenants by the debtor.
Write-off policy
APA Group writes off a financial asset when all reasonable attempts at recovery have been taken and failed e.g.
debts that are considered irrecoverable, or where the cost of recovery is uneconomic, must be written off as a
bad debt.
21. Issued capital
2024
2023
$m
$m
Units
1,283,352,928 securities, fully paid (2023: 1,179,893,848 securities, fully paid) ¹
2,400
1,964
2024
2023
No. of units
2024
No. of units
2023
in millions
$m
in millions
$m
Movements
Balance at beginning of financial year
1,180
1,964
1,180
2,225
Capital distributions paid (note 8)
—
(177)
—
(261)
Issue of securities under distribution reinvestment plan ²
1
2
—
—
Issue of securities under institutional security placement ³
79
475
—
—
Issue of securities under retail security purchase plan ⁴
23
141
—
—
Security issue costs
—
(5)
—
—
Balance at end of financial year
1,283
2,400
1,180
1,964
1
Fully paid securities carry one vote per security and carry the right to distributions.
2
On 14 March 2024, the distribution declared in December 2023 resulted in $2 million being raised by the distribution reinvestment plan through the issue of 0.4
million stapled securities at a price of $8.27.
3
On 29 August 2023, APA Infrastructure Trust and APA Investment Trust issued 79.4 million new stapled securities via institutional placement at an issue price of
$8.50, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
4 On 22 September 2023, APA Infrastructure Trust and APA Investment Trust issued 23.7 million new stapled securities via security purchase plan at an issue
price of $8.46, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
The Trust does not have a limited amount of authorised capital.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
156 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Group Structure
22. Non-controlling interests
APA Infrastructure Trust is deemed the parent entity of APA Group comprising of the stapled structure of APA
Infrastructure Trust and APA Investment Trust. Equity attributable to other trusts stapled to the parent is a form of
non-controlling interest and represents 100% of the equity of APA Investment Trust.
Summarised financial information for APA Investment Trust is set out below, the amounts disclosed are before
inter-entity eliminations.
2024
2023
$m
$m
Financial position
Current assets
—
1
Non-current assets
747
566
Total assets
747
567
Total liabilities
—
—
Net assets
747
567
Equity attributable to non-controlling interests
747
567
Financial performance
Revenue
25
24
Expenses
(5)
—
Profit for the year
20
24
Total comprehensive income allocated to non-controlling interests for the year
20
24
Cash flows
Net cash provided by operating activities
25
25
Net cash (used in) / provided by investing activities
(184)
90
Proceeds from issue of securities, net of costs
257
—
Distributions paid to non-controlling interests, net of DRP issuance
(97)
(114)
Net cash provided by / (used in) financing activities
160
(114)
The accounting policies of APA Investment Trust are the same as those applied to APA Group.
There are no material guarantees, contingent liabilities or restrictions imposed on APA Group from APA
Investment Trust's non-controlling interests.
2024
2023
$m
$m
APA Investment Trust
747
567
Equity attributable to non-controlling interests
747
567
APA Investment Trust
Issued capital:
Balance at beginning of financial year
555
644
Distribution – capital return (note 8)
(78)
(89)
Issue of securities under institutional security placement (net of transaction costs)
198
—
Issue of securities under retail security purchase plan (net of transaction costs)
58
—
Issue of securities under distribution reinvestment plan
1
—
734
555
Retained earnings:
Balance at beginning of financial year
12
13
Net profit attributable to APA Investment Trust unitholders
20
24
Distributions paid (note 8)
(19)
(25)
13
12
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 157
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Joint arrangements and associates
The table below lists APA Group's interest in joint ventures and associates that are reported as part of the Energy
Investments segment. APA Group provides asset management, operation and maintenance services and
corporate services, in varying combinations to the majority of energy infrastructure assets housed within these
entities.
Ownership interest %
Name of entity
Principal activity
Country of incorporation
2024
2023
Joint ventures:
SEA Gas
Gas transmission
Australia
50.0
50.0
SEA Gas (Mortlake)
Gas transmission
Australia
50.0
50.0
Energy Infrastructure
Investments
Energy infrastructure
Australia
19.9
19.9
EII 2
Power generation (wind)
Australia
20.2
20.2
Associates:
GDI (EII)
Gas distribution
Australia
20.0
20.0
2024
2023
$m
$m
Investment in joint ventures and associates using the equity method
262
273
Joint Ventures
Aggregate carrying amount of investment
237
246
APA Group's aggregated share of:
Profit from continuing operations
19
17
Other comprehensive income
(8)
4
Total comprehensive income
11
21
Associates
Aggregate carrying amount of investment
25
27
APA Group's aggregated share of:
Profit from continuing operations
6
6
Other comprehensive income
(1)
—
Total comprehensive income
5
6
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
158 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Joint arrangements and associates (continued)
Investment in associates
An associate is an entity over which APA Group has significant influence and that is neither a subsidiary nor a
joint arrangement. Investments in associates are accounted for using the equity accounting method.
Under the equity accounting method the investment is recorded initially at cost to APA Group, including any
goodwill on acquisition. In subsequent periods the carrying amount of the investment is adjusted to reflect APA
Group’s share of the retained post-acquisition profit or loss and other comprehensive income, less any
impairment.
Losses of an associate or joint venture in excess of APA Group’s interests (which includes any long-term interests,
that in substance, form part of the net investment) are recognised only to the extent that there is a legal or
constructive obligation or APA Group has made payments on behalf of the associate or joint venture.
Carrying values of the investment in joint arrangements and associates are subject to impairment testing if there
is objective evidence of impairment. No material indicators were identified in the joint arrangements and
associates as at the date of the issuance of these financial statements.
Critical accounting judgements and key sources of estimation uncertainty – joint ventures and associates
Indicators that APA’s investment in joint ventures and associates may be impaired include evidence of significant
financial difficulty of the associate or joint venture; a breach of contract, the potential that the associate or joint
venture will enter bankruptcy or other financial reorganisation, or the disappearance of an active market for the
investment because of financial difficulties of the associate or joint venture.
Contingent liabilities and capital commitments
APA Group's share of the contingent liabilities, capital commitments and other expenditure commitments of joint
operations is disclosed in note 26.
APA Group is a party to the following joint operations:
Output interest
2024
2023
Name of venture
Principal activity
%
%
Goldfields Gas Transmission ¹
Gas pipeline operation – Western Australia
100.0
88.2
1
On 1 November 2023, APA Group acquired the remaining 11.8% of Goldfields Gas Transmission joint operations as part of Alinta Energy Pilbara Holdings Pty Ltd
and Alinta Energy (Newman Storage) Pty Ltd (together referred to as the Pilbara Energy System business). Goldfields Gas Transmission is a 100% owned
subsidiary as at 30 June 2024. Refer to note 25 for further details.
Interest in joint arrangements
A joint arrangement is an arrangement whereby two or more parties have joint control. Joint control is the
contractually agreed sharing of control such that decisions about the relevant activities of the arrangement
(those that significantly affect the returns) require the unanimous consent of the parties sharing control.
APA Group has two types of joint arrangements:
Joint ventures: A joint arrangement in which the parties that share joint control have rights to the net assets of
the arrangement. Joint Ventures are accounted for using the equity accounting method; and
Joint operations: A joint arrangement in which the parties that share joint control have rights to the assets, and
obligations for the liabilities, relating to the arrangement. In relation to its interest in a joint operation, APA Group
recognises its share of assets and liabilities, revenue from the sale of its share of the output and its share of any
revenue generated from the sale of the output by the joint operation and its share of expenses. These are
incorporated into APA Group’s financial statements under the appropriate headings.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 159
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Group Structure (continued)
24. Subsidiaries
Subsidiaries are entities controlled by APA Infrastructure Trust. Control exists where APA Infrastructure Trust has
power over the entities, i.e. existing rights that give the current ability to direct the relevant activities of the entities
(those that significantly affect the returns); exposure, or rights, to variable returns from its involvement with the
entities; and the ability to use its power to affect those returns. The country of registration or incorporation is also
their principal place of business.
Ownership interest
Country of registration/
2024
2023
Name of entity
incorporation
%
%
Parent entity
APA Infrastructure Trust
1
Subsidiaries
Agex Pty. Ltd.
2,3
Australia
100
100
APA (BWF Holdco) Pty Ltd
2,3
Australia
100
100
APA (EDWF Holdco) Pty Ltd
2,3
Australia
100
100
APA (EPX) Pty Limited
2,3
Australia
100
100
APA (NBH) Pty Limited
2,3
Australia
100
100
APA (Pilbara Pipeline) Pty Ltd
2,3
Australia
100
100
APA (SWQP) Pty Limited
2,3
Australia
100
100
APA (WA) One Pty Limited
2,3
Australia
100
100
APA AIS 1 Pty Limited
2,3
Australia
100
100
APA AIS 2 Pty Ltd
2,3
Australia
100
100
APA AIS Pty Limited
2,3
Australia
100
100
APA AM (Allgas) Pty Limited
2,3
Australia
100
100
APA BIDCO Pty Limited
2,3
Australia
100
100
APA Biobond Pty Limited
2,3
Australia
100
100
APA Country Pipelines Pty Limited
2,3
Australia
100
100
APA DPS Holdings Pty Limited
2,3
Australia
100
100
APA DPS2 Pty Limited
2,3
Australia
100
100
APA East Pipelines Pty Limited
2,3
Australia
100
100
APA EE Australia Pty Limited
2,3
Australia
100
100
APA EE Corporate Shared Services Pty Limited
2,3
Australia
100
100
APA EE Holdings Pty Limited
2,3
Australia
100
100
APA EE Pty Limited
2,3
Australia
100
100
APA Electricity T&D Holdings Pty Ltd
2,3
Australia
100
100
APA Electricity T&D Pty Ltd
2,3
Australia
100
100
APA Ethane Pty Limited
2,3
Australia
100
100
APA Facilities Management Pty Limited
2,3
Australia
100
100
APA Group Equity Trust ⁹
-
100
–
APA Group Limited
2
Australia
100
100
APA Infrastructure Limited
2,3
Australia
100
100
APA Midstream Holdings Pty Limited
2,3
Australia
100
100
APA Northern Goldfields Interconnect Pty Ltd
2,3
Australia
100
100
APA Operations (EII) Pty Limited
2,3
Australia
100
100
APA Operations Pty Limited
2,3
Australia
100
100
APA Orbost Gas Plant Pty Ltd
2,3
Australia
100
100
APA Pipelines Investments (BWP) Pty Limited
2,3
Australia
100
100
APA Power Holdings Pty Limited
2,3
Australia
100
100
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
160 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Group Structure (continued)
24. Subsidiaries
Ownership interest
Country of registration/
2024
2023
Name of entity
incorporation
%
%
APA Power PF Pty Limited
2,3
Australia
100
100
APA Reedy Creek Wallumbilla Pty Limited
2,3
Australia
100
100
APA SEA Gas (Mortlake) Holdings Pty Ltd
2,3
Australia
100
100
APA SEA Gas (Mortlake) Pty Ltd
2
Australia
100
100
APA Services (Int) Inc. ⁶
United States
–
100
APA Sub Trust No 1
2,4
-
100
100
APA Sub Trust No 2
2,4
-
100
100
APA Sub Trust No 3
2,4
-
100
100
APA Transmission Pty Limited
2,4
Australia
100
100
APA US Investments ⁶
United States
–
100
APA VTS A Pty Limited
2,4
Australia
100
100
APA VTS Australia (Holdings) Pty Limited
2,3
Australia
100
100
APA VTS Australia (NSW) Pty Limited
2,3
Australia
100
100
APA VTS Australia (Operations) Pty Limited
2,3
Australia
100
100
APA VTS Australia Pty Limite
2,3
Australia
100
100
APA VTS B Pty Limited
2,3
Australia
100
100
APA Western Slopes Pipeline Pty Limited
2,3
Australia
100
100
APA WGP Pty Ltd
2,3
Australia
100
100
APA (Newman Storage) Pty Ltd
2,3,7
Australia
100
–
APA Pilbara Holdings Pty Ltd
2,3,7
Australia
100
–
APA DEWAP Pty Ltd
2,3,7
Australia
100
–
APA DEWAH Pty Ltd
2,3,7
Australia
100
–
APA GGT Holdings Pty Ltd
2,3,7
Australia
100
–
APA GGT Sub Pty Limited
2,3,7
Australia
100
–
APA GGT Pty Limited
2,3,7
Australia
100
–
APA Transmission (Roy Hill) Holdings Pty Ltd
2,3,7
Australia
100
–
APA Transmission (Roy Hill) Sub Pty Ltd
2,3,7
Australia
100
–
APA Transmission (Roy Hill) Pty Ltd
2,3,7
Australia
100
–
APA Pilbara Solar Holdings Pty Ltd
2,7
Australia
100
–
APA Pilbara Finance Pty Ltd
2,7
Australia
100
–
APA Transmission (Chichester) Pty Ltd
2,7,8
Australia
100
–
APA (Chichester) Pty Ltd
2,7,8
Australia
100
–
APA Transmission (Roy Hill) Finance Pty Ltd
2,3,7
Australia
100
–
APT (MIT) Services Pty Limited
2,3
Australia
100
100
APT AM (Stratus) Pty Limited
2,3
Australia
100
100
APT AM Employment Pty Limited
2,3
Australia
100
100
APT AM Holdings Pty Limited
2,3
Australia
100
100
APT Facility Management Pty Limited
2,3
Australia
100
100
APT Goldfields Pty Ltd
2,3
Australia
100
100
APT Management Services Pty Limited
2,3
Australia
100
100
APT O&M Holdings Pty Ltd
2,3
Australia
100
100
APT O&M Services (QLD) Pty Ltd
2,3
Australia
100
100
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 161
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Group Structure (continued)
24. Subsidiaries
Ownership interest
Country of registration/
2024
2023
Name of entity
incorporation
%
%
APT O&M Services Pty Ltd
2,3
Australia
100
100
APT Parmelia Holdings Pty Ltd
2,3
Australia
100
100
APT Parmelia Pty Ltd
2,3
Australia
100
100
APT Parmelia Trust
2,4
Australia
100
100
APT Petroleum Pipelines Holdings Pty Limited
2,3
Australia
100
100
APT Petroleum Pipelines Pty Limited
2,3
Australia
100
100
APT Pipelines (NSW) Pty Limited
2,3
Australia
100
100
APT Pipelines (NT) Pty Limited
2,3
Australia
100
100
APT Pipelines (QLD) Pty Limited
2,3
Australia
100
100
APT Pipelines (SA) Pty Limited
2,3
Australia
100
100
APT Pipelines (WA) Pty Limited
2,3
Australia
100
100
APT Pipelines Investments (NSW) Pty Limited
2,3
Australia
100
100
APT Pipelines Investments (WA) Pty Limited
2,3
Australia
100
100
APT Sea Gas Holdings Pty Limited
2,3
Australia
100
100
APT SPV2 Pty Ltd
2
Australia
100
100
APT SPV3 Pty Ltd
2
Australia
100
100
Basslink Pty Ltd
2,3
Australia
100
100
Basslink Telecomms Pty Ltd
2,3
Australia
100
100
Central Ranges Pipeline Pty Ltd
2,3
Australia
100
100
Darling Downs Solar Farm Pty Ltd
2,3
Australia
100
100
Diamantina Holding Company Pty Limited
2,3
Australia
100
100
Diamantina Power Station Pty Limited
2,3
Australia
100
100
East Australian Pipeline Pty Limited
2,3
Australia
100
100
EDWF Holdings 1 Pty Ltd
2,3
Australia
100
100
EDWF Holdings 2 Pty Ltd
2,3
Australia
100
100
EDWF Manager Pty Ltd
2,3
Australia
100
100
Epic Energy East Pipelines Trust
2,4
-
100
100
EPX Holdco Pty Limited
2,3
Australia
100
100
EPX Member Pty Limited
2,3
Australia
100
100
EPX Trust
2,4
-
100
100
Ethane Pipeline Income Financing Trust
2,4
-
100
100
Ethane Pipeline Income Trust
2,4
-
100
100
Gasinvest Australia Pty Ltd
2,3
Australia
100
100
GasNet A Trust
4
-
100
100
GasNet Australia Investments Trust
4
-
100
100
GasNet Australia Trust
2,4
-
100
100
Goldfields Gas Transmission Pty Ltd
2
Australia
100
100
Gorodok Pty Ltd
2,3
Australia
100
100
Griffin Windfarm 2 Pty Ltd
2
Australia
100
100
InfraEnergy Solutions Pty Limited
2,3,5
Australia
100
100
Moomba to Sydney Ethane Pipeline Trust
2,4
-
100
100
N.T. Gas Distribution Pty Limited
2,3
Australia
100
100
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
162 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Group Structure (continued)
24. Subsidiaries
Ownership interest
Country of registration/
2024
2023
Name of entity
incorporation
%
%
N.T. Gas Pty Limited
Australia
96
96
Power Solutions 2 Holdco Pty Limited
2,3
Australia
100
–
Power Solutions 2 Pty Limited
2,3
Australia
100
–
Roverton Pty. Ltd.
2,3
Australia
100
100
SCP Investments (No. 1) Pty Limited
2,3
Australia
100
100
SCP Investments (No. 2) Pty Limited
2,3
Australia
100
100
SCP Investments (No. 3) Pty Limited
2,3
Australia
100
100
Sopic Pty. Ltd.
2,3
Australia
100
100
Southern Cross Pipelines (NPL) Australia Pty Limited
2,3
Australia
100
100
Southern Cross Pipelines Australia Pty Limited
2,3
Australia
100
100
Trans Australia Pipeline Pty Ltd
2,3
Australia
100
100
Votraint No. 1606 Pty Limited
2
Australia
100
100
Votraint No. 1613 Pty Limited
2
Australia
100
100
Western Australian Gas Transmission Company 1 Pty Ltd
2
Australia
100
100
Wind Portfolio Pty Ltd
2,3
Australia
100
100
1
APA Infrastructure Trust is the head entity within the APA tax-consolidated group.
2
These entities are members of the APA tax-consolidated group.
3
These wholly-owned subsidiaries have entered into a deed of cross guarantee with APA Infrastructure Limited pursuant to ASIC Corporations Instrument
2016/785 and are relieved from the requirement to prepare and lodge an audited financial report.
4 These trusts are unincorporated and not required to be registered.
5
This entity's name was changed from N.T. Gas Easements Pty Limited on 27th April 2023.
6 These entities were deregistered on 31 May 2024.
7
These entities were acquired as part of the acquisition of Alinta Energy Pilbara Holdings Pty Ltd and Alinta Energy (Newman Storage) Pty Ltd (together
referred to as the Pilbara Energy System business) on 1 November 2023. Refer to note 25 for further details.
8 These wholly-owned subsidiaries have entered into a deed of cross guarantee with APA Pilbara Finance Pty Ltd pursuant to ASIC Corporations Instrument
2016/785 and are relieved from the requirement to prepare and lodge an audited financial report.
9
APA Group Equity Trust was formed during the year to purchase APA Securities for the purpose of issuing shares to employees under the Group's employee
incentive plans.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 163
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Other items
25. Acquisition of Pilbara Energy System
On 1 November 2023, APA Group completed the acquisition of 100% of Alinta Energy Pilbara Holdings Pty Ltd and
Alinta Energy (Newman Storage) Pty Ltd (together referred to as the Pilbara Energy System business) for a total
cash consideration of $1,703 million. The acquisition included the remaining 11.8% interest in the Goldfields Gas
Transmission (GGT) joint operations, resulting in an increase in APA Group's interest in GGT joint operations from
88.2% to 100%, granting it full ownership over GGT joint operations.
The Pilbara Energy System is an energy infrastructure business underpinned by contracted operational assets
(gas and solar power generation and transmission, gas transmission and battery energy storage systems
(BESS)), together with an extensive pipeline of development projects (wind, solar, gas reciprocating engines, BESS
and associated electricity transmission), located in Western Australia’s Pilbara region. The acquisition provides
APA with a significant growth platform to develop and operate remote-grid energy solutions for Australia’s
resources industry, complementing APA’s already strong development and operational capability in key
resources areas such as Mount Isa and Gruyere.
The Pilbara Energy System and the Goldfields Gas Transmission joint operations qualify as a business as defined
in AASB 3 Business Combinations. Acquisitions of businesses are accounted for using the acquisition method.
Under the acquisition method of accounting, the purchase consideration is allocated to the identifiable assets
acquired and liabilities assumed (the identifiable net assets) on the basis of their fair value at the date of
acquisition which is the date on which control is obtained. The excess of the consideration transferred and the
acquisition-date fair value of APA Group's pre-existing equity interest in the acquiree over the fair value of the
identifiable net assets acquired is recorded as goodwill.
The acquisition accounting required under AASB 3 has been finalised at 30 June 2024. Details of the purchase
consideration, the fair value of the identifiable net assets and goodwill arising from the acquisition are set out
below.
2024
Purchase consideration:
$m
Cash paid
1,703
Fair value of pre-existing 88.2% interest in GGT joint operations ¹
1,433
Total consideration
3,136
1
As part of the requirements under AASB 3, APA Group's pre-existing 88.2% interest in the GGT joint operations was remeasured to its acquisition-date fair
value of $1,433 million. The difference between the fair value and the carrying amount of the Group's pre-existing interest in GGT joint operations on
acquisition date of $1,051 million was recognised as a remeasurement gain in the Consolidated Statement of Profit or Loss. This amount has been included in
other income.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
164 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Other (continued)
25. Acquisition of Pilbara Energy System (continued)
2024
Fair value of identifiable net assets acquired
$m
Current assets
Cash and cash equivalents ¹
93
Trade and other receivables ²
27
Inventories
10
Other assets
10
Current assets
140
Non-current assets
Property, plant and equipment
1,693
Other intangible assets ³
1,350
Non-current assets
3,043
Total assets
3,183
Current liabilities
Trade and other payables
30
Unearned revenue
2
Borrowings
2
Provisions
3
Current liabilities
37
Non-current liabilities
Unearned revenue
45
Borrowings
66
Provisions
55
Deferred tax liabilities ⁴
542
Non-current liabilities
708
Total liabilities
745
Fair value of identifiable net assets
2,438
1
Cash and cash equivalents include $88 million cash acquired and $5 million attributable to the pre-existing 88.2% interest in the GGT joint operation.
2
Fair value of the trade and other receivable represents their gross contractual values. No material contractual cash flows are expected to be uncollectable.
3
Included in other intangible assets are identifiable customer contracts and development assets which arose as a result of the business combination and
other intangible assets.
4 Deferred tax liabilities primarily relate to the liability recognised at acquisition due to the difference between the fair value and the corresponding tax base.
Goodwill
2024
$m
Total consideration (including fair value of pre-existing 88.2% of interest in GGT joint operations)
3,136
Less: Fair value of identifiable net assets acquired
(2,438)
Goodwill
698
The goodwill on acquisition primarily arises from the deferred tax liability recognised at acquisition due to a
difference between the fair value and the corresponding asset tax bases. The remaining goodwill consists of the
access to an established workforce, the non-contracted customer relationships and early-stage development
projects that do not meet the separability criterion under AASB 138 Intangible Assets, and the synergies and other
benefits expected from integrating the Pilbara Energy System assets into APA Group’s existing business that do
not qualify for separate recognition. None of the goodwill recognised is expected to be deductible for income tax
purposes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 165
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Other (continued)
25. Acquisition of Pilbara Energy System (continued)
2024
Cash flows on acquisition
$m
Cash paid
(1,703)
Cash acquired
88
Net cash flows on acquisition
(1,615)
Cash paid and cash acquired disclosed in the table above are exclusive of the cash balance relating to the pre-
existing 88.2% interest.
Acquisition and estimated stamp duty costs of $72 million and integration-related costs of $14 million were
expensed in the current period and are included in other expenses.
Included in the consolidated net profit for the financial year ended 30 June 2024 is statutory revenue of $169
million and profit before tax of $23 million contributed by the Pilbara Energy System business. The Group's
underlying net profit includes underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of
$89 million from the Pilbara Energy System business.
If the acquisition had occurred on 1 July 2023, it is estimated that the acquired business would have contributed
$249 million to statutory revenue and $38 million to statutory profit before tax for the financial year ended
30 June 2024. It is estimated that the acquired business would have contributed $133 million to the Group's
current year underlying EBITDA if the acquisition occurred on 1 July 2023. In determining these amounts, it is
assumed that the fair value adjustments and adjustments for difference in accounting policies that arose on the
date of acquisition would have been the same if the acquisition had occurred on 1 July 2023.
Critical accounting judgements and key sources of estimation uncertainty – Fair values of net identifiable
assets acquired
Judgement is required to determine the fair values of assets acquired and liabilities assumed in a business
combination in particular the fair valuation of the identifiable intangible assets, which may have an impact on
the resultant goodwill. The Group engaged independent experts to advise on the purchase price allocation and
the valuation of material assets acquired.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
166 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Other (continued)
26. Commitments and contingencies
2024
2023
$m
$m
Capital expenditure commitments
APA Group - plant and equipment
209
213
APA Group's share of jointly controlled operations - plant and equipment
—
15
209
228
Contingent liabilities
Bank guarantees
47
57
APA Group is subject to a range of operational matters, which can at times raise exposure to assets and liabilities
that are uncertain and cannot be measured reliably. This includes our exposure to matters such as regulatory
requirements, changes in law, climate change policy, changes to licensing and recognised practising codes
including health, safety and environment, employee entitlements, environmental laws and regulations,
occupational health and safety requirements, technical and safety standards and asset construction and
operation compliance requirements. The preparation of the financial statements requires management to make
judgements and estimates and form assumptions that affect the amounts of contingent assets and liabilities
reported in the financial statements.
These judgements, estimates and assumptions are based on the most current facts and circumstances and are
reassessed on an ongoing basis, the results of which form the basis of the reported amounts that are not readily
apparent from other sources. Actual results may differ from these estimates under different assumptions and
conditions. This may materially affect financial results and the financial position to be reported in future periods.
APA Group continues to assess these judgements, estimates and assumptions relating to the disclosure of
contingent assets and liabilities.
Contingent assets and liabilities relate predominantly to possible benefits or obligations whose existence will only
be confirmed by uncertain future events and present obligations where the transfer of economic resources is
not probable or cannot be reliably estimated. Therefore such amounts are not recognised in the financial
statements.
As at 30 June 2024 and 30 June 2023 APA Group had no material contingent liabilities, other than the bank
guarantees disclosed above.
APA Group had nil contingent assets as at 30 June 2024 and 30 June 2023.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 167
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Other (continued)
27. Director and Executive Key Management Personnel remuneration
Remuneration of Directors
The aggregate remuneration of Directors of APA Group is set out below:
2024
2023
$
$
Short-term employment benefits
1,742,212
1,673,901
Post-employment benefits
165,545
149,671
Total remuneration: Non-Executive Directors
1,907,757
1,823,572
Short-term employment benefits
2,475,001
4,112,061
Post-employment benefits
27,399
31,563
Cash settled security-based payments
—
138,770
Equity settled security-based payments
900,215
2,575,647
Total remuneration: Executive Directors
3,402,615
6,858,041
Total remuneration: Directors ¹
5,310,372
8,681,613
Remuneration of Executive Key Management Personnel
The aggregate remuneration of Executive Key Management Personnel of APA Group is set out below:
2024
2023
$
$
Short-term employment benefits
5,966,026
6,528,421
Post-employment benefits
102,746
72,854
Cash settled security-based payments
92,405
179,992
Equity settled security-based payments
1,802,626
3,286,021
Total remuneration: Executive Key Management Personnel ¹
,²
7,963,803
10,067,288
1
During FY23, the remuneration for the former Chief Executive Officer and Managing Director, Rob Wheals up to 30 September 2022 and current Chief
Executive Officer and Managing Director, Adam Watson from 1 October 2022 (previously Chief Financial Officer and Key Management Personnel), are
included in both the remuneration disclosure for Directors and Executive Key Management Personnel. The remuneration for Group Executive Strategy &
Commercial, Julian Peck to 25 August 2022 and Group Executive Commercial Development, Ross Gersbach to 22 August 2022 are included in the
remuneration disclosure for Executive Key Management Personnel.
2
During FY24, APA appointed Garrick Rollason as Chief Financial Officer on 16 October 2023 and Petrea Bradford as Group Executive Operations on 28 August
2023. Their remuneration is included in the remuneration disclosure of Key Management Personnel. All existing non-executive directors and executive
management personnel served a term of at least 12 months in FY24.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
168 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Other (continued)
28. Remuneration of external auditor
2024
2023
$
$
Amounts received or due and receivable by Deloitte Touche Tohmatsu for:
Audit or review of the financial reports:
Group
1,216,200
1,165,300
Subsidiaries
150,500
138,500
Total audit or review of the financial reports
¹
,²
1,366,700
1,303,800
Audit or review of the regulatory financial reporting to the Australian Energy Regulator and
Economic Regulation Authority
Subsidiaries
627,600
597,800
Total audit or review of the financial reports
627,600
597,800
Audit or review of the National Greenhouse and Energy Reporting ³
Group
135,000
124,650
Total audit or review of the National Greenhouse and Energy Reporting
135,000
124,650
Statutory assurance services required by legislation to be provided by the auditor
Agreed-upon procedures in relation to ASIC Regulatory Guide 231 requirements ⁴
12,900
12,300
ASIC compliance plan audit
24,100
23,000
Financial services licence audit
9,500
9,100
Total statutory assurance services required by legislation to be provided by the auditor
46,500
44,400
Other assurance services ⁵
823,600
335,525
Total assurance services
2,999,400
2,406,175
Non-audit services ⁶
208,505
335,549
Total remuneration of external auditor
3,207,905
2,741,724
1
Audit or review in the year ended 30 June 2024 included procedures over the acquisition of Pilbara Energy System ('PES') and the audit of subsidiary financial
statements for PES.
2
Audit or review in the year ended 30 June 2023 included procedures over the payroll review for relevant periods up to 30 June 2023, together with procedures
over the acquisition of Basslink and the audit of subsidiary financial statements for Basslink.
3
Service provided includes assurance procedures on the energy and emissions reports and submissions required under the relevant National Greenhouse
and Energy Reporting legislations, and review of APA Group's National Greenhouse and Energy Reporting systems and controls.
4 Service provided includes agreed-upon procedures in relation to ASIC Regulatory Guide 231 requirements.
5
Services provided were in accordance with the external auditor independence policy. These services include:
•
agreed upon procedure engagements in relation to the FY24 equity raise,
•
assurance procedures relating to the FY24 hybrid debt raise,
•
assurance engagements relating to APA’s Climate Transition Plan and reported sustainability metrics, and
•
APA's Emissions-Intensity Determination Applications in accordance with the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule
2015 for South-West Queensland Pipeline and Goldfields Gas Transmission Pipeline.
6 Services provided were in accordance with the external auditor independence policy. Non-audit services mainly comprise provision of technology licensing
and related support services that are provided by an entity acquired by the external auditor during FY22, including the provision of support services to meet
the data reporting requirements of the Wholesale Electricity Market (WEM) in Western Australia.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 169
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Other (continued)
29. Related party transactions
(a) Equity interest in related parties
Details of the percentage of ordinary securities held in subsidiaries are disclosed in note 24 and the details of the
percentage held in joint operations, joint ventures and associates are disclosed in note 23.
(b) Responsible Entity – APA Group Limited
The Responsible Entity is wholly owned by APA Infrastructure Limited.
(c) Transactions with related parties within APA Group
Transactions between the entities that comprise APA Group during the financial year consisted of:
•
Dividends;
•
Asset lease rentals;
•
Loans advanced and payments received on long-term inter-entity loans;
•
Management fees;
•
Operational services provided between entities; and
•
Payments of distributions.
The above transactions were made on normal commercial terms and conditions. The Group charges interest on
inter-entity loans from time to time.
All transactions between the entities that comprise APA Group have been eliminated on consolidation.
Refer to note 24 for details of the entities that comprise APA Group.
Management fees of $7 million (2023: $10 million) were paid to the Responsible Entity as reimbursement of costs
incurred on behalf of APA Group. No amounts were paid directly by APA Group to the Directors of the Responsible
Entity, except as disclosed at note 27.
APA Group Limited, in its capacity as trustee and Responsible Entity of the Trust, has guaranteed the payment of
principal, interest and other amounts as provided in the senior debt facilities of APA Infrastructure Limited, the
principal borrowing entity of APA Group.
(d) Transactions with other associates and joint ventures
The following transactions occurred with APA Group's associates and joint ventures on normal market terms and
conditions:
Dividends
from related
parties
Capital return to
related parties
Sales to related
parties
Purchases
from related
parties
Amount owed by
related
parties
Amount owed to
related
parties
2024
$'000
$'000
$'000
$'000
$'000
$'000
SEA Gas
—
—
2,367
—
171
—
Energy Infrastructure Investments
2,932
—
43,298
—
8,192
—
EII 2
3,446
13,489
892
—
1,472
—
GDI (EII)
7,457
—
68,924
—
6,507
—
13,835
13,489
115,481
—
16,342
—
2023
SEA Gas
4,790
—
2,360
—
—
30
Energy Infrastructure Investments
2,577
—
42,151
—
6,152
—
EII 2
4,276
—
855
—
369
—
GDI (EII)
7,163
—
63,106
—
5,786
—
18,806
—
108,472
—
12,307
30
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
170 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Other (continued)
30. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the financial information
below, are the same as those applied in the consolidated financial statements.
2024
2023
$m
$m
Financial position
Assets
Current assets
2,140
1,436
Non-current assets
620
629
Total assets
2,760
2,065
Liabilities
Current liabilities
347
98
Total liabilities
347
98
Net assets
2,413
1,967
Equity
Issued capital
2,400
1,964
Retained earnings
13
3
Total equity
2,413
1,967
Financial performance
Profit for the year
418
257
Total comprehensive income
418
257
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
APA Group Limited, in its capacity as Trustee and Responsible Entity of the Trust, has guaranteed the payment of
principal, interest and other amounts as provided in the senior debt facilities of APA Infrastructure Limited, the
principal borrowing entity of APA Group.
Due to the contingent nature of these financial guarantees no liability has been recorded (2023: $nil).
Contingent liabilities of the parent entity
Refer to note 26 for contingent liabilities. Bank guarantees are issued by APA Infrastructure Limited, a wholly-
owned subsidiary of the parent entity.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 171
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Other (continued)
31. Adoption of new and revised Accounting Standards
New and amended Accounting Standards that are effective for the current period:
•
AASB 17 Insurance Contracts
•
AASB 2021-7 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and
AASB 128 and Editorial Corrections (insofar as the Standard relates to editorial corrections that are effective for
the current period and apply to AASB 17)
•
AASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 –
Comparative Information
•
AASB 2022-8 Amendments to Australian Accounting Standards – Insurance Contracts: Consequential
Amendments
•
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
•
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
•
AASB 2022-7 Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and
Redundant Standards
•
AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model
Rules
APA Group has adopted the new and amended Standards that are relevant to its operations. The adoption of the
new and amended Standards does not have a material impact on APA Group’s accounting policies or any of the
amounts recognised in the financial statements.
APA Group is not expected to be within the scope of the Pillar Two from 1 July 2024 as the Group does not have
any active operations in foreign jurisdictions in entities it controls. APA Group will continue to assess the impact of
Pillar Two income tax legislation, in particular if there is a change in the jurisdictions in which it operates or
changes in the law. As at 30 June 2024, the Group does not expect any material exposure to Pillar Two top up
taxes.
Standards and Interpretations issued not yet adopted
At the date of authorisation of the financial statements, the Standards and Interpretations on issue but not yet
effective are not expected to have material impact on APA Group’s accounting policies or any of the amounts
recognised in the financial statements.
32. Events occuring after reporting date
On 28 August 2024, the Board announced the retirement of Debra Goodin and Peter Wasow and the
appointment of Samantha Lewis and David Lamont as Directors of APA. The appointment of Samantha Lewis
and David Lamont will be effective 1 October 2024. To ensure a smooth transition, Debra Goodin will remain on
the Board until late February 2025. Peter Wasow will retire at the conclusion of the Annual Meeting in October
2024.
Final distribution declaration
On 28 August 2024, the Directors declared a final distribution of 29.5 cents per security ($379 million) for APA
Group, an increase of 1.7%, or 0.5 cent per security over the previous corresponding period (2023: 29.0 cents per
security). This is comprised of a partially franked profit distribution of 28.48 cents per security from APA
Infrastructure Trust and an unfranked profit distribution of 1.02 cents per security from APA Investment Trust. The
distribution is expected to be paid on 18 September 2024.
Other than the events disclosed above, there have not been any events or transactions that have occurred
subsequent to year end that would require adjustment to or disclosure in the financial statements.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
172 APA GROUP ANNUAL REPORT 2024
Declaration by the Directors of APA Group Limited
The Directors declare that:
(a) in the Directors’ opinion, there are reasonable grounds to believe that APA Infrastructure Trust will be able to
pay its debts as and when they become due and payable;
(b) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with Accounting Standards and giving a true and fair view of the
financial position and performance of APA Group;
(c) in the Directors' opinion, the financial statements and notes thereto are in accordance with International
Financial Reporting Standards issued by the International Accounting Standards Board; and
(d) the Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer
required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors of the Responsible Entity made pursuant to section 295(5)
of the Corporations Act 2001.
On behalf of the Directors
Michael Fraser
Chairman
Adam Watson
CEO and Managing Director
SYDNEY, 28 August 2024
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 173
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
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APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Auditor’s Independence Declaration
174
ANNUAL REPORT 2024
APA GROUP
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ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐŵĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐLJŝŶĨŽƌŵĂƚŝŽŶĂŶĚŽƚŚĞƌĞdžƉůĂŶĂƚŽƌLJŝŶĨŽƌŵĂƚŝŽŶ͕ĂŶĚƚŚĞ
directors’ declaration.
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞ'ƌŽƵƉŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕
ŝŶĐůƵĚŝŶŐ͗
•
'ŝǀŝŶŐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞGroup’s financial position as at ϯϬ:ƵŶĞϮϬϮϰĂŶĚŽĨŝƚƐĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ
ĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ĂŶĚ
•
ŽŵƉůLJŝŶŐǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĂŶĚƚŚĞŽƌƉŽƌĂƚŝŽŶƐZĞŐƵůĂƚŝŽŶƐϮϬϬϭ͘
ĂƐŝƐĨŽƌŽƉŝŶŝŽŶ
tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘KƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƵŶĚĞƌƚŚŽƐĞ
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
ƌĞƉŽƌƚ͘tĞĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞ'ƌŽƵƉŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ
ŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭand the ethical requirements of the Accounting Professional & Ethical Standards Board’s
W ^ϭϭϬŽĚĞŽĨ ƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂůĐĐŽƵŶƚĂŶƚƐ;ŝŶĐůƵĚŝŶŐ/ŶĚĞƉĞŶĚĞŶĐĞ^ƚĂŶĚĂƌĚƐͿ;ƚŚĞŽĚĞͿƚŚĂƚĂƌĞ
ƌĞůĞǀĂŶƚƚŽŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶƵƐƚƌĂůŝĂ͘tĞŚĂǀĞĂůƐŽĨƵůĨŝůůĞĚŽƵƌŽƚŚĞƌĞƚŚŝĐĂůƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶ
ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽĚĞ͘
tĞĐŽŶĨŝƌŵƚŚĂƚƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĚĞĐůĂƌĂƚŝŽŶƌĞƋƵŝƌĞĚďLJƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ǁŚŝĐŚŚĂƐďĞĞŶŐŝǀĞŶƚŽƚŚĞ
ĚŝƌĞĐƚŽƌƐŽĨAPA Group Limited (the “Responsible Entity”)͕ǁŽƵůĚďĞŝŶƚŚĞƐĂŵĞƚĞƌŵƐŝĨŐŝǀĞŶƚŽƚŚĞĚŝƌĞĐƚŽƌƐĂƐĂƚ
the time of this auditor’s report.
tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
175
APA GROUP
ANNUAL REPORT 2024
<ĞLJĂƵĚŝƚŵĂƚƚĞƌƐ
<ĞLJĂƵĚŝƚŵĂƚƚĞƌƐĂƌĞƚŚŽƐĞŵĂƚƚĞƌƐƚŚĂƚ͕ŝŶŽƵƌƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚ͕ǁĞƌĞŽĨŵŽƐƚƐŝŐŶŝĨŝĐĂŶĐĞŝŶŽƵƌĂƵĚŝƚŽĨ
ƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚ͘dŚĞƐĞŵĂƚƚĞƌƐǁĞƌĞĂĚĚƌĞƐƐĞĚŝŶƚŚĞĐŽŶƚĞdžƚŽĨŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚĂƐĂǁŚŽůĞ͕ĂŶĚŝŶĨŽƌŵŝŶŐŽƵƌŽƉŝŶŝŽŶƚŚĞƌĞŽŶ͕ĂŶĚǁĞĚŽŶŽƚƉƌŽǀŝĚĞĂƐĞƉĂƌĂƚĞŽƉŝŶŝŽŶŽŶƚŚĞƐĞŵĂƚƚĞƌƐ͘
<ĞLJĂƵĚŝƚŵĂƚƚĞƌ
,ŽǁƚŚĞƐĐŽƉĞŽĨŽƵƌĂƵĚŝƚƌĞƐƉŽŶĚĞĚƚŽƚŚĞ
ŬĞLJĂƵĚŝƚŵĂƚƚĞƌ
ĐƋƵŝƐŝƚŝŽŶŽĨWŝůďĂƌĂ ŶĞƌŐLJ^LJƐƚĞŵ
ƐĚŝƐĐůŽƐĞĚŝŶEŽƚĞϮϱ͕W'ƌŽƵƉĞŶƚĞƌĞĚŝŶƚŽ
ĂŶĂŐƌĞĞŵĞŶƚƚŽĂĐƋƵŝƌĞϭϬϬйŽĨůŝŶƚĂ ŶĞƌŐLJ
WŝůďĂƌĂ,ŽůĚŝŶŐƐWƚLJ>ƚĚĂŶĚůŝŶƚĂ ŶĞƌŐLJ
;EĞǁŵĂŶ^ƚŽƌĂŐĞͿWƚLJ>ƚĚ;ƚŽŐĞƚŚĞƌƌĞĨĞƌƌĞĚƚŽ
ĂƐƚŚĞ“Pilbara Energy SystemďƵƐŝŶĞƐƐ” or “PES
ďƵƐŝŶĞƐƐ”). This acquisition has been accounted
ĨŽƌŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ϯƵƐŝŶĞƐƐ
ŽŵďŝŶĂƚŝŽŶƐ(“AASB3”).
ƐƉĂƌƚŽĨƚŚĞĂĐƋƵŝƐŝƚŝŽŶ͕ƚŚĞƌĞŵĂŝŶŝŶŐϭϭ͘ϴй
of Goldfields Gas Transmission Pipeline (“GGTP”)
ǁĂƐĂĐƋƵŝƌĞĚďLJW'ƌŽƵƉƚŚƌŽƵŐŚƚŚĞ
ĂĐƋƵŝƐŝƚŝŽŶŽĨƚŚĞW ^ďƵƐŝŶĞƐƐ͘DĂŶĂŐĞŵĞŶƚ
ĚĞƚĞƌŵŝŶĞĚƚŚĂƚW'ƌŽƵƉŚĂĚŽďƚĂŝŶĞĚ
ĐŽŶƚƌŽůŽĨƚŚĞ''dWĂŶĚƵŶĚĞƌ^ϯǁĞƌĞ
ƌĞƋƵŝƌĞĚƚŽĨĂŝƌǀĂůƵĞƚŚĞŝƌƉƌĞǀŝŽƵƐůLJŚĞůĚ
ŝŶƚĞƌĞƐƚ͘dŚŝƐƌĞƐƵůƚĞĚŝŶĂŐĂŝŶŽŶƌĞǀĂůƵĂƚŝŽŶŽĨ
Ψϭ͘ϬϱďŝůůŝŽŶ͘
ĐĐŽƵŶƚŝŶŐĨŽƌƚŚĞĂĐƋƵŝƐŝƚŝŽŶŝƐĐŽŵƉůĞdžĂŶĚ
ƌĞƋƵŝƌĞƐƐŝŐŶŝĨŝĐĂŶƚũƵĚŐĞŵĞŶƚƌĞƋƵŝƌŝŶŐ
ŵĂŶĂŐĞŵĞŶƚƚŽĚĞƚĞƌŵŝŶĞ͗
•
ƚŚĞĨĂŝƌǀĂůƵĞƵƉůŝĨƚĂŶĚƌĞƐƵůƚŝŶŐŐĂŝŶŽŶ
ƌĞǀĂůƵĂƚŝŽŶŽĨƚŚĞƉƌĞǀŝŽƵƐůLJŚĞůĚŝŶƚĞƌĞƐƚŝŶ
''dW͖
•
ƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƚŝŽŶ͖
•
ƚŚĞĨĂŝƌǀĂůƵĞŽĨĂĐƋƵŝƌĞĚĂƐƐĞƚƐŝŶĐůƵĚŝŶŐ
property, plant and equipment (“PPE”) and
ĂƐƐƵŵĞĚůŝĂďŝůŝƚŝĞƐ͖ĂŶĚ
•
ƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞŝĚĞŶƚŝĨŝĂďůĞŝŶƚĂŶŐŝďůĞ
ĂƐƐĞƚƐƐƵĐŚĂƐĐƵƐƚŽŵĞƌĐŽŶƚƌĂĐƚƐĂŶĚ
ĚĞǀĞůŽƉŵĞŶƚĂƐƐĞƚƐ͕ǁŚŝĐŚĂƌĞƌĞĐŽŐŶŝƐĞĚ
ƐĞƉĂƌĂƚĞůLJĨƌŽŵŐŽŽĚǁŝůů͖ƚŚĞƚĂdž
ĐŽŶƐĞƋƵĞŶĐĞƐŽĨƚŚĞĂĐƋƵŝƐŝƚŝŽŶ͘
ǁŚĞƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŽďƚĂŝŶĞĚĚƵƌŝŶŐƚŚĞ
ŵĞĂƐƵƌĞŵĞŶƚƉĞƌŝŽĚǁĂƐƌĞĨůĞĐƚŝǀĞŽĨƚŚĞĨĂĐƚƐ
ĂŶĚĐŝƌĐƵŵƐƚĂŶĐĞƐƚŚĂƚĞdžŝƐƚĞĚĂƚĂĐƋƵŝƐŝƚŝŽŶ
ĚĂƚĞ͘
KƵƌƉƌŽĐĞĚƵƌĞƐƉĞƌĨŽƌŵĞĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌǀĂůƵĂƚŝŽŶ
ĂŶĚƚĂdžĂƚŝŽŶƐƉĞĐŝĂůŝƐƚƐ͕ŝŶĐůƵĚĞĚďƵƚǁĞƌĞŶŽƚůŝŵŝƚĞĚƚŽ͗
•
obtaining and assessing management’s position paper on
ƚŚĞƚƌĞĂƚŵĞŶƚŽĨƚŚĞĂĐƋƵŝƐŝƚŝŽŶ͖
•
obtaining the share sale agreement (“SSA”) from
ŵĂŶĂŐĞŵĞŶƚĂŶĚĂƐƐĞƐƐŝŶŐƚŚĞĂĐĐŽƵŶƚŝŶŐƚƌĞĂƚŵĞŶƚŝƐŝŶ
ůŝŶĞǁŝƚŚ^ϯ͖
•
ŽďƚĂŝŶŝŶŐƚŚĞĨŝŶĂůĐŽŵƉůĞƚŝŽŶǁŽƌŬŬƚŽĐŽŶĨŝƌŵƚŚĞ
ĨŝŶĂůĐŽŵƉůĞƚŝŽŶƉĂLJŵĞŶƚĂĚũƵƐƚŵĞŶƚŚĂĚďĞĞŶĐĂůĐƵůĂƚĞĚ
ŝŶůŝŶĞǁŝƚŚƚŚĞ^^͖
•
ŽďƚĂŝŶŝŶŐƚŚĞŽƉĞŶŝŶŐďĂůĂŶĐĞĐĂůĐƵůĂƚŝŽŶƉĞƌĨŽƌŵĞĚďLJ
ŵĂŶĂŐĞŵĞŶƚĨŽƌĂůůŵĂƚĞƌŝĂůďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐĂŶĚ
challenging management’s judgements made in
ĚĞƚĞƌŵŝŶŝŶŐƚŚĞĨĂŝƌǀĂůƵĞŽĨĂƐƐĞƚƐĂĐƋƵŝƌĞĚ͕ůŝĂďŝůŝƚŝĞƐ
ĂƐƐƵŵĞĚ͕ĂŶĚĐŽŶƐŝĚĞƌĂƚŝŽŶƉĂŝĚ͖
•
ŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌƐƉĞĐŝĂůŝƐƚƐ͕ĂƐƐĞƐƐŝŶŐƚŚĞǀĂůƵĂƚŝŽŶ
ŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂŶĚŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ
performed by management’s experts and challengŝŶŐƚŚĞ
ĂƐƐƵŵƉƚŝŽŶƐƵƚŝůŝƐĞĚĂŶĚŵĞƚŚŽĚŽůŽŐLJĂƉƉůŝĞĚ͖
•
ŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌƚĂdžĂƚŝŽŶƐƉĞĐŝĂůŝƐƚƐ͕ĂƐƐĞƐƐŝŶŐƚŚĞ
ĂůůŽĐĂďůĞĐŽƐƚĂŵŽƵŶƚĐĂůĐƵůĂƚŝŽŶƉĞƌĨŽƌŵĞĚďLJ
management’s experts and challengŝŶŐƚŚĞĂƐƐƵŵƉƚŝŽŶƐ
ƵƚŝůŝƐĞĚĂŶĚŵĞƚŚŽĚŽůŽŐLJĂƉƉůŝĞĚ͖ĂŶĚ
•
obtaining and assessing management’s application of
^ϯŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĐĂůĐƵůĂƚŝŽŶŽĨƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞ
ƉƌĞǀŝŽƵƐůLJŚĞůĚŝŶƚĞƌĞƐƚŽĨ''dWĂŶĚƚŚĞƌĞƐƵůƚŝŶŐŐĂŝŶŽŶ
ĂĐƋƵŝƐŝƚŝŽŶ͘
tĞŚĂǀĞĂůƐŽĂƐƐĞƐƐĞĚƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƚŚĞĚŝƐĐůŽƐƵƌĞƐ
ŝŶĐůƵĚĞĚŝŶEŽƚĞϮϱƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
176
ANNUAL REPORT 2024
APA GROUP
<ĞLJĂƵĚŝƚŵĂƚƚĞƌ
,ŽǁƚŚĞƐĐŽƉĞŽĨŽƵƌĂƵĚŝƚƌĞƐƉŽŶĚĞĚƚŽƚŚĞ
ŬĞLJĂƵĚŝƚŵĂƚƚĞƌ
ĂƌƌLJŝŶŐǀĂůƵĞŽĨĂƐƐĞƚƐ
ƐĂƚϯϬ:ƵŶĞϮϬϮϰ͕W'ƌŽƵƉΖƐďĂůĂŶĐĞƐŚĞĞƚ
ŝŶĐůƵĚĞƐƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚŽĨΨϭϮ͘ϱ
ďŝůůŝŽŶ͕ŐŽŽĚǁŝůůŽĨΨϭ͘ϵďŝůůŝŽŶĂůůŽĐĂƚĞĚĂĐƌŽƐƐ
several cash generating units (“CGUs”) and other
ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐŽĨΨϯ͘ϯďŝůůŝŽŶĂƐĚŝƐĐůŽƐĞĚŝŶ
EŽƚĞƐϭϭĂŶĚϭϮ͘
DĂŶĂŐĞŵĞŶƚĐŽŶĚƵĐƚƐĂŶŶƵĂůŝŵƉĂŝƌŵĞŶƚƚĞƐƚƐ
;ŽƌŵŽƌĞĨƌĞƋƵĞŶƚůLJŝĨŝŵƉĂŝƌŵĞŶƚŝŶĚŝĐĂƚŽƌƐ
ĞdžŝƐƚͿƚŽĂƐƐĞƐƐƚŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨ
ƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂŶĚŝŶƚĂŶŐŝďůĞ
ĂƐƐĞƚƐŝŶĐůƵĚŝŶŐŐŽŽĚǁŝůů͘dŚŝƐĂƐƐĞƐƐŵĞŶƚŝƐ
ƉĞƌĨŽƌŵĞĚƚŚƌŽƵŐŚƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨ
ĚŝƐĐŽƵŶƚĞĚĐĂƐŚĨůŽǁǀĂůƵĞŝŶƵƐĞŵŽĚĞůƐ͘
dŚĞŝŵƉĂŝƌŵĞŶƚƚĞƐƚƌĞƋƵŝƌĞƐƚŚĞĞdžĞƌĐŝƐĞŽĨ
ƐŝŐŶŝĨŝĐĂŶƚũƵĚŐĞŵĞŶƚŝŶƌĞƐƉĞĐƚŽĨĨĂĐƚŽƌƐƐƵĐŚ
ĂƐĨƵƚƵƌĞƐƵƉƉůLJĂŶĚĚĞŵĂŶĚ͕ŝŵƉĂĐƚƐŽĨĐůŝŵĂƚĞ
ĐŚĂŶŐĞ͕ĚŝƐĐŽƵŶƚƌĂƚĞƐ͕ĂƐǁĞůůĂƐĞĐŽŶŽŵŝĐ
ĂƐƐƵŵƉƚŝŽŶƐƐƵĐŚĂƐŝŶĨůĂƚŝŽŶ͘DĂŶĂŐĞŵĞŶƚĂůƐŽ
ĐŽŶƐŝĚĞƌƐƚŚĞŽŶŐŽŝŶŐƌĞǀŝĞǁŽĨƵƐĞĨƵůůŝǀĞƐĂƐ
ƉĂƌƚŽĨƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨĂƐƐĞƚƐĂƐƐĞƐƐŵĞŶƚ
ĂƐŽƵƚůŝŶĞĚŝŶEŽƚĞϭϯ͘
ƐĂƌĞƐƵůƚŽĨƚŚŝƐ͕ĂŶŝŵƉĂŝƌŵĞŶƚĐŚĂƌŐĞŽĨΨϭϰϰ
ŵŝůůŝŽŶǁĂƐƌĞĐŽƌĚĞĚĂƚϯϬ:ƵŶĞϮϬϮϰƚŽƚŚĞ
DŽŽŵďĂSydney Ethane Pipeline (“MSEP”).
D^ WŝƐĂƐŝŶŐůĞƵƐĞƌƉŝƉĞůŝŶĞĂŶĚǁŝƚŚƚŚĞůŽƐƐ
ŽĨƚŚĂƚĐƵƐƚŽŵĞƌĂŶĚŶŽĚĞŵĂŶĚĨŽƌĞƚŚĂŶĞ
ƚƌĂŶƐƉŽƌƚĂƚŝŽŶŝŶƵƐƚƌĂůŝĂ͕ŵĂŶĂŐĞŵĞŶƚŚĂǀĞ
ĚĞƚĞƌŵŝŶĞĚƚŚĞŵŽƐƚƌĞĂƐŽŶĂďůĞĂŶĚ
ƐƵƉƉŽƌƚĂďůĞĂƐƐƵŵƉƚŝŽŶĂƚƚŚŝƐƚŝŵĞƚŽďĞƚŚĂƚ
ƚŚĞĂƐƐĞƚǁŝůůŶŽƚďĞƵƚŝůŝƐĞĚĨŽƌƚŚĞĨŽƌĞƐĞĞĂďůĞ
ĨƵƚƵƌĞĂŶĚƚŚĞƌĞĨŽƌĞŚĂǀĞǁƌŝƚƚĞŶĚŽǁŶƚŚĞ
ĐƵƌƌĞŶƚŬǀĂůƵĞŽĨD^ WƚŽΨŶŝů͘
KƵƌĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐ͕ŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌǀĂůƵĂƚŝŽŶ
ƐƉĞĐŝĂůŝƐƚƐ͕ŝŶĐůƵĚĞĚďƵƚǁĞƌĞŶŽƚůŝŵŝƚĞĚƚŽ͗
•
ŽďƚĂŝŶŝŶŐĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞƉƌŽĐĞƐƐĨůŽǁƐĂŶĚŬĞLJ
ĐŽŶƚƌŽůƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŝŵƉĂŝƌŵĞŶƚŵŽĚĞůƐƉƌĞƉĂƌĞĚ
ďLJŵĂŶĂŐĞŵĞŶƚĂŶĚƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞƉĂƉĞƌƌĞǀŝĞǁĞĚďLJ
ƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƵƐĞĚƚŽĞƐƚŝŵĂƚĞƚŚĞƌĞĐŽǀĞƌĂďůĞ
ĂŵŽƵŶƚŽĨĞĂĐŚĂƐƐĞƚĂŶĚŝŵƉĂŝƌŵĞŶƚĐŚĂƌŐĞƐ͕ǁŚĞƌĞ
ĂƉƉůŝĐĂďůĞ͖
•
ŽďƚĂŝŶŝŶŐĂŶĚĂƐƐĞƐƐŝŶŐƚŚĞƉŽƐŝƚŝŽŶƉĂƉĞƌƐƉƌĞƉĂƌĞĚďLJ
ŵĂŶĂŐĞŵĞŶƚƚŽƐƵƉƉŽƌƚƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞĂƐƐĞƐƐŵĞŶƚĨŽƌ
ƚŚĞĂƐƐĞƚƐ͖
•
ĞǀĂůƵĂƚŝŶŐƚŚĞƉƌŽĐĞƐƐƵƐĞĚďLJŵĂŶĂŐĞŵĞŶƚŝŶƚŚĞ
ĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŽƐĞĂƐƐĞƚƐŽƌ'hƐƌĞƋƵŝƌŝŶŐĨƵƌƚŚĞƌ
ŝŵƉĂŝƌŵĞŶƚĂŶĂůLJƐŝƐĚƵĞƚŽƚŚĞĞdžŝƐƚĞŶĐĞŽĨĂŶŝŵƉĂŝƌŵĞŶƚ
ŝŶĚŝĐĂƚŽƌŽƌŐŽŽĚǁŝůůŝŶĐůƵĚŝŶŐ͗
o
ĂƐƐĞƐƐŝŶŐŵĂŶĂŐĞŵent’s determination of APA Group’s
ĂƐƐĞƚƐĂŶĚ'hƐƚŚĂƚƐŚŽƵůĚďĞƚĞƐƚĞĚĨŽƌŝŵƉĂŝƌŵĞŶƚ͕
ƚŚĞůĞǀĞůĂƚǁŚŝĐŚŐŽŽĚǁŝůůŝƐŵŽŶŝƚŽƌĞĚĂŶĚ
ĐŽŶƐŝƐƚĞŶĐLJǁŝƚŚƚŚĞĂƐƐĞƐƐŵĞŶƚŽĨƐĞŐŵĞŶƚƌĞƉŽƌƚŝŶŐ͖
o
ĞǀĂůƵĂƚŝŶŐmanagement’s ƌĞĐŽǀĞƌĂďůĞǀĂůƵĞ
ĂƐƐĞƐƐŵĞŶƚďĂƐĞĚŽŶĂŶƵŵďĞƌŽĨĨĂĐƚŽƌƐŝŶĐůƵĚŝŶŐ
ŚŝƐƚŽƌŝĐĂůƌĞƐƵůƚƐ͕ĞĐŽŶŽŵŝĐĚĂƚĂĂŶĚŝŶĚƵƐƚƌLJĨŽƌĞĐĂƐƚƐ
ĂŶĚĐŽŶƐŝĚĞƌŝŶŐƚŚĞƉŽƚĞŶƚŝĂůŝŵƉĂĐƚŽĨĐůŝŵĂƚĞĐŚĂŶŐĞ͕
ǁŚĞƌĞĂƉƉůŝĐĂďůĞ͖ĂŶĚ
o
ĂƐƐĞƐƐŝŶŐĂŶĚĐŚĂůůĞŶŐŝŶŐƚŚĞƵƐĞĨƵůůŝǀĞƐĂĚŽƉƚĞĚďLJ
ŵĂŶĂŐĞŵĞŶƚďLJŽďƚĂŝŶŝŶŐŝŶĚĞƉĞŶĚĞŶƚƚŚŝƌĚͲƉĂƌƚLJ
ƌĞƉŽƌƚƐ͕ĐŽŶƚƌĂĐƚƵĂůĂƌƌĂŶŐĞŵĞŶƚƐ͕ƌĞŐƵůĂƚŽƌLJƌĞƚƵƌŶƐ
ĂŶĚĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚƉůĂŶƐ͘
•
ĞǀĂůƵĂƚŝŶŐŵĂŶĂŐĞŵĞŶƚΖƐŵĞƚŚŽĚŽůŽŐLJĂŶĚƚŚĞŝƌ
ĚŽĐƵŵĞŶƚĞĚďĂƐŝƐĨŽƌŬĞLJĂƐƐƵŵƉƚŝŽŶƐƵƚŝůŝƐĞĚŝŶƚŚĞD^ W
ĚŝƐĐŽƵŶƚĞĚĐĂƐŚĨůŽǁŝŵƉĂŝƌŵĞŶƚŵŽĚĞů͕ŝŶĐůƵĚŝŶŐ͗
o
ŽďƚĂŝŶĞĚĂŶĚĂƐƐĞƐƐĞĚƚŚĞD^ WŽĂƌĚƉĂƉĞƌ͖
o
ƉĞƌĨŽƌŵŝŶŐŝŶƋƵŝƌŝĞƐŽĨƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚƚŽ
ƵŶĚĞƌƐƚĂŶĚƚŚĞƉŽƚĞŶƚŝĂůĂůƚĞƌŶĂƚŝǀĞƵƐĞƐĨŽƌD^ W͖
o
ĐŚĂůůĞŶŐŝŶŐŵĂŶĂŐĞŵĞŶƚŽŶƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐĂŶĚ
ƐƵƉƉŽƌƚĂďŝůŝƚLJŽĨĂƐƐƵŵƉƚŝŽŶƐǁŝƚŚŝŶĂůƚĞƌŶĂƚŝǀĞƵƐĞ
ƐĐĞŶĂƌŝŽƐ͖
o
ĂƐƐĞƐƐŝŶŐƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƚŚĞŝŵƉĂŝƌŵĞŶƚŵŽĚĞů
ŵĞƚŚŽĚŽůŽŐLJĨŽƌƚŚĞƐĞůĞĐƚĞĚƐĐĞŶĂƌŝŽ͕ŝŶĐůƵĚŝŶŐŬĞLJ
ŝŶƉƵƚƐĂŶĚĂƐƐƵŵƉƚŝŽŶƐƵƐĞĚŝŶƚŚĞŵŽĚĞůƵƐŝŶŐŽƵƌ
ŬŶŽǁůĞĚŐĞŽĨƚŚĞďƵƐŝŶĞƐƐĂŶĚƚŚĞŝŶĚƵƐƚƌLJ͖ĂŶĚ
o
ĐŽŶƐŝĚĞƌŝŶŐmanagement’s determination of the
ĐŽŵƉůĞƚĞŶĞƐƐŽĨĂƐƐĞƚƐƚŽďĞŝŵƉĂŝƌĞĚĂŶĚĞǀĂůƵĂƚĞ
ǁŚĞƚŚĞƌƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌ^ϭϯϲ/ŵƉĂŝƌŵĞŶƚ
ŽĨƐƐĞƚƐŚĂǀĞďĞĞŶĨŽůůŽǁĞĚ͘
tĞŚĂǀĞĂůƐŽĂƐƐĞƐƐĞĚƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƚŚĞĚŝƐĐůŽƐƵƌĞƐ
ŝŶĐůƵĚĞĚŝŶEŽƚĞϭϯƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
177
APA GROUP
ANNUAL REPORT 2024
<ĞLJĂƵĚŝƚŵĂƚƚĞƌ
,ŽǁƚŚĞƐĐŽƉĞŽĨŽƵƌĂƵĚŝƚƌĞƐƉŽŶĚĞĚƚŽƚŚĞ
ŬĞLJĂƵĚŝƚŵĂƚƚĞƌ
Information Technology (“IT”) systems
APA Group’s ƚĞĐŚŶŽůŽŐLJĞŶǀŝƌŽŶŵĞŶƚŝƐŝŶƚĞŐƌĂů
ƚŽƚŚĞŽƉĞƌĂƚŝŽŶƐŽĨƚŚĞďƵƐŝŶĞƐƐ͘dŚĞ
ƚĞĐŚŶŽůŽŐLJĞŶǀŝƌŽŶŵĞŶƚƌĞůĂƚĞĚƚŽĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚŝŶŐŝƐĐŽŵƉůĞdž͕ǁŝƚŚĂĚĞŐƌĞĞŽĨ
ĂƵƚŽŵĂƚŝŽŶ͕ǀĂƌLJŝŶŐůĞǀĞůƐŽĨŝŶƚĞŐƌĂƚŝŽŶ͕
ƚƌĂŶƐĨŽƌŵĂƚŝŽŶĂŶĚĂĐŽŵďŝŶĂƚŝŽŶŽĨĂƵƚŽŵĂƚĞĚ
ĂŶĚŵĂŶƵĂůĐŽŶƚƌŽůƐǁŚŝĐŚŐŽǀĞƌŶƚŚĞŝŶƚĞŐƌŝƚLJ
of APA Group’s financial reporting process. TŚĞ
ĂƐƐĞƐƐŵĞŶƚŽĨƚŚĞƚĞĐŚŶŽůŽŐLJĞŶǀŝƌŽŶŵĞŶƚ
ĨŽƌŵƐĂŬĞLJĐŽŵƉŽŶĞŶƚŽĨŽƵƌĞdžƚĞƌŶĂůĂƵĚŝƚ
ĂŶĚŝƐĐŽŶƐŝĚĞƌĞĚĂŬĞLJĂƵĚŝƚŵĂƚƚĞƌ͘
KƵƌƉƌŽĐĞĚƵƌĞƐŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌ/dƐƉĞĐŝĂůŝƐƚƐ͕ŝŶĐůƵĚĞĚ
ďƵƚǁĞƌĞŶŽƚůŝŵŝƚĞĚƚŽ͗
•
ƵƉĚĂƚŝŶŐŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞƚĞĐŚŶŽůŽŐLJĞŶǀŝƌŽŶŵĞŶƚ
ĂŶĚƚŚĞŝĚĞŶƚŝĨŝĐĂƚŝŽŶŽĨŬĞLJĨŝŶĂŶĐŝĂůƐLJƐƚĞŵƐ͕ĐŽŶƚƌŽůƐĂŶĚ
ƉƌŽĐĞƐƐĞƐƌĞůĞǀĂŶƚƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͖
•
ĞǀĂůƵĂƚŝŶŐƚŚĞĚĞƐŝŐŶĂŶĚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞŬĞLJ/d
ĐŽŶƚƌŽůƐŽĨƌĞůĞǀĂŶƚĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶŐƐLJƐƚĞŵƐĂŶĚ
ƉƌŽĐĞƐƐĞƐŽĨW'ƌŽƵƉ͖ĂŶĚ
•
ǁŚĞƌĞǁĞŝĚĞŶƚŝĨŝĞĚŵĂƚƚĞƌƐƌĞůĂƚŝŶŐƚŽ/dƐLJƐƚĞŵƐŽƌ
ĂƉƉůŝĐĂƚŝŽŶĐŽŶƚƌŽůƐƌĞůĞǀĂŶƚƚŽŽƵƌĂƵĚŝƚǁĞĚĞƐŝŐŶĞĚĂŶĚ
ƉĞƌĨŽƌŵĞĚĂĚĚŝƚŝŽŶĂůƉƌŽĐĞĚƵƌĞƐ͕ŝŶĐůƵĚŝŶŐƚŚĞ
ŝĚĞŶƚŝĨŝĐĂƚŝŽŶĂŶĚƚĞƐƚŝŶŐŽĨŵĂŶƵĂůĐŽŶƚƌŽůƐĂŶĚƉĞƌĨŽƌŵĞĚ
ĂůƚĞƌŶĂƚŝǀĞƐƵďƐƚĂŶƚŝǀĞƉƌŽĐĞĚƵƌĞƐ͘
KƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ
dŚĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞZĞƐƉŽŶƐŝďůĞ ntity (the “Ěirectors”) ĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ͘dŚĞŽƚŚĞƌ
information comprises the information included in the Group’s annual report for the year ended ϯϬ:ƵŶĞϮϬϮϰďƵƚ
does not include the financial report and our auditor’s report thereon.
KƵƌŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĚŽĞƐŶŽƚĐŽǀĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚǁĞĚŽŶŽƚĞdžƉƌĞƐƐĂŶLJĨŽƌŵŽĨ
ĂƐƐƵƌĂŶĐĞĐŽŶĐůƵƐŝŽŶƚŚĞƌĞŽŶ͘
/ŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŽƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽƌĞĂĚƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚ͕ŝŶĚŽŝŶŐ
ƐŽ͕ĐŽŶƐŝĚĞƌǁŚĞƚŚĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝƐŵĂƚĞƌŝĂůůLJŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌŽƵƌŬŶŽǁůĞĚŐĞ
ŽďƚĂŝŶĞĚŝŶƚŚĞĂƵĚŝƚ͕ŽƌŽƚŚĞƌǁŝƐĞĂƉƉĞĂƌƐƚŽďĞŵĂƚĞƌŝĂůůLJŵŝƐƐƚĂƚĞĚ͘
/Ĩ͕ďĂƐĞĚŽŶƚŚĞǁŽƌŬǁĞŚĂǀĞƉĞƌĨŽƌŵĞĚ͕ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞƌĞŝƐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚŝƐŽƚŚĞƌ
ŝŶĨŽƌŵĂƚŝŽŶ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚƚŚĂƚĨĂĐƚ͘tĞŚĂǀĞŶŽƚŚŝŶŐƚŽƌĞƉŽƌƚŝŶƚŚŝƐƌĞŐĂƌĚ͘
ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐŽĨƚŚĞĚŝƌĞĐƚŽƌƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ
dŚĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞ'ƌŽƵƉĂƌĞƌĞƐƉŽŶƐŝďůĞ͗
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&ŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂƚƌƵĞ
ĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ'ƌŽƵƉŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ
^ƚĂŶĚĂƌĚƐ͖ĂŶĚ
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&ŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐƚŚĞĚŝƌĞĐƚŽƌƐĚĞƚĞƌŵŝŶĞŝƐŶĞĐĞƐƐĂƌLJƚŽĞŶĂďůĞƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ'ƌŽƵƉ͕ĂŶĚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͘
/ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ƚŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞĂďŝůŝƚLJŽĨƚŚĞ'ƌŽƵƉƚŽĐŽŶƚŝŶƵĞĂƐĂ
ŐŽŝŶŐĐŽŶĐĞƌŶ͕ĚŝƐĐůŽƐŝŶŐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŵĂƚƚĞƌƐƌĞůĂƚĞĚƚŽŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚƵƐŝŶŐƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŽĨ
ĂĐĐŽƵŶƚŝŶŐƵŶůĞƐƐƚŚĞĚŝƌĞĐƚŽƌƐĞŝƚŚĞƌŝŶƚĞŶĚƚŽůŝƋƵŝĚĂƚĞƚŚĞ'ƌŽƵƉŽƌƚŽĐĞĂƐĞŽƉĞƌĂƚŝŽŶƐ͕ŽƌŚĂƐŶŽƌĞĂůŝƐƚŝĐ
ĂůƚĞƌŶĂƚŝǀĞďƵƚƚŽĚŽƐŽ͘
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
178
ANNUAL REPORT 2024
APA GROUP
Auditor’s ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐĨŽƌƚŚĞĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ
KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞŝƐĨƌĞĞĨƌŽŵ
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
ZĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞďƵƚŝƐŶŽƚĂŐƵĂƌĂŶƚĞĞƚŚĂƚĂŶĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ
ƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐǁŝůůĂůǁĂLJƐĚĞƚĞĐƚĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞŶŝƚĞdžŝƐƚƐ͘DŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞ
ĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞ
ĞdžƉĞĐƚĞĚƚŽŝŶĨůƵĞŶĐĞƚŚĞĞĐŽŶŽŵŝĐĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘
ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕ǁĞĞdžĞƌĐŝƐĞƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚĂŶĚ
ŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĐĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘tĞĂůƐŽ͗
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/ĚĞŶƚŝĨLJĂŶĚĂƐƐĞƐƐƚŚĞƌŝƐŬƐŽĨŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕
ĚĞƐŝŐŶĂŶĚƉĞƌĨŽƌŵĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚŽƐĞƌŝƐŬƐ͕ĂŶĚŽďƚĂŝŶĂƵĚŝƚĞǀŝĚĞŶĐĞƚŚĂƚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚ
ĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘dŚĞƌŝƐŬŽĨŶŽƚĚĞƚĞĐƚŝŶŐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐĨƌŽŵ
ĨƌĂƵĚŝƐŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƚŝŽŶĂůŽŵŝƐƐŝŽŶƐ͕
ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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KďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞĂƵĚŝƚŝŶŽƌĚĞƌƚŽĚĞƐŝŐŶĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƚŚĂƚĂƌĞ
ĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞ
Group’sŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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ǀĂůƵĂƚĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐĂŶĚ
ƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŵĂĚĞďLJƚŚĞĚŝƌĞĐƚŽƌƐ͘
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Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
ƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚ͕ǁŚĞƚŚĞƌĂŵĂƚĞƌŝĂůƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐƌĞůĂƚĞĚƚŽĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐƚŚĂƚŵĂLJĐĂƐƚ
ƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶƚŚĞGroup’s ĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘/ĨǁĞĐŽŶĐůƵĚĞƚŚĂƚĂŵĂƚĞƌŝĂů
ƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽĚƌĂǁattention in our auditor’s report to the related disclosures in the
ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ƚŽŵŽĚŝĨLJŽƵƌŽƉŝŶŝŽŶ͘KƵƌĐŽŶĐůƵƐŝŽŶƐĂƌĞďĂƐĞĚŽŶƚŚĞ
audit evidence obtained up to the date of our auditor’s report. However, fuƚƵƌĞĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐŵĂLJĐĂƵƐĞ
ƚŚĞ'ƌŽƵƉƚŽĐĞĂƐĞƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘
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ǀĂůƵĂƚĞƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶ͕ƐƚƌƵĐƚƵƌĞĂŶĚĐŽŶƚĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚ
ǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƌĞƉƌĞƐĞŶƚƐƚŚĞƵŶĚĞƌůLJŝŶŐƚƌĂŶƐĂĐƚŝŽŶƐĂŶĚĞǀĞŶƚƐŝŶĂŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌ
ƉƌĞƐĞŶƚĂƚŝŽŶ͘
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KďƚĂŝŶƐƵĨĨŝĐŝĞŶƚĂƉƉƌŽƉƌŝĂƚĞĂƵĚŝƚĞǀŝĚĞŶĐĞƌĞŐĂƌĚŝŶŐƚŚĞĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŽĨƚŚĞĞŶƚŝƚŝĞƐŽƌďƵƐŝŶĞƐƐ
ĂĐƚŝǀŝƚŝĞƐǁŝƚŚŝŶƚŚĞ'ƌŽƵƉƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘tĞĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĚŝƌĞĐƚŝŽŶ͕
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
tĞĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞĚŝƌĞĐƚŽƌƐƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƚƚĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚƚŝŵŝŶŐŽĨƚŚĞĂƵĚŝƚĂŶĚ
ƐŝŐŶŝĨŝĐĂŶƚĂƵĚŝƚĨŝŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐĂŶLJƐŝŐŶŝĨŝĐĂŶƚĚĞĨŝĐŝĞŶĐŝĞƐŝŶŝŶƚĞƌŶĂůĐŽŶƚƌŽůƚŚĂƚǁĞŝĚĞŶƚŝĨLJĚƵƌŝŶŐŽƵƌĂƵĚŝƚ͘
tĞĂůƐŽƉƌŽǀŝĚĞƚŚĞĚŝƌĞĐƚŽƌƐǁŝƚŚĂƐƚĂƚĞŵĞŶƚƚŚĂƚǁĞŚĂǀĞĐŽŵƉůŝĞĚǁŝƚŚƌĞůĞǀĂŶƚĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐƌĞŐĂƌĚŝŶŐ
ŝŶĚĞƉĞŶĚĞŶĐĞ͕ĂŶĚƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞŵĂůůƌĞůĂƚŝŽŶƐŚŝƉƐĂŶĚŽƚŚĞƌŵĂƚƚĞƌƐƚŚĂƚŵĂLJƌĞĂƐŽŶĂďůLJďĞƚŚŽƵŐŚƚ
ƚŽďĞĂƌŽŶŽƵƌŝŶĚĞƉĞŶĚĞŶĐĞ͕ĂŶĚǁŚĞƌĞĂƉƉůŝĐĂďůĞ͕ĂĐƚŝŽŶƐƚĂŬĞŶƚŽĞůŝŵŝŶĂƚĞƚŚƌĞĂƚƐŽƌƐĂĨĞŐƵĂƌĚƐĂƉƉůŝĞĚ͘
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matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
ĞdžƚƌĞŵĞůLJƌĂƌĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ǁĞĚĞƚĞƌŵŝŶĞƚŚĂƚĂŵĂƚƚĞƌƐŚŽƵůĚŶŽƚďĞĐŽŵŵƵŶŝĐĂƚĞĚŝŶŽƵƌƌĞƉŽƌƚďĞĐĂƵƐĞƚŚĞ
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ĐŽŵŵƵŶŝĐĂƚŝŽŶ͘
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
179
APA GROUP
ANNUAL REPORT 2024
ZĞƉŽƌƚŽŶƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ
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WĂƌƚŶĞƌ
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APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
180
ANNUAL REPORT 2024
APA GROUP
Directors’ Report
The Directors of APA Group Limited (the Responsible Entity) submit their report and the annual financial
report of APA Investment Trust (APA Invest) and its controlled entities (together the Consolidated Entity) for the
financial year ended 30 June 2024. This report refers to the consolidated results of APA Invest, one of the two
stapled entities of APA Group, with the other stapled entity being APA Infrastructure Trust (together APA).
Directors
The names of the Directors of the Responsible Entity during the year and since year end are:
Current Directors
First appointed
Michael Fraser
1 September 2015 and appointed Chairman 27 October 2017
Adam Watson
Appointed Chief Executive Officer and Managing Director 19 December 2022
James Fazzino
21 February 2019
Nino Ficca
1 September 2023
Debra (Debbie) Goodin
1 September 2015
Rhoda Phillippo
1 June 2020
Peter Wasow
19 March 2018
Shirley In’t Veld
19 March 2018. Retired on 28 March 2024
The Company Secretaries of the Responsible Entity during the year were Amanda Cheney and Bronwyn Weir.
Principal activities
The Consolidated Entity operates as an investment and financing entity within the APA Group.
Executive Leadership changes
• Chief Financial Officer (CFO): Garrick Rollason appointed as CFO effective 16 October 2023.
• Group Executive Operations: Petrea Bradford appointed as Group Executive of Operations effective
28 August 2023
Subsequent events
On 28 August 2024, the Board announced the retirement of Debra Goodin and Peter Wasow and the appointment
of Samantha Lewis and David Lamont as Directors of APA. The appointment of Samantha Lewis and David Lamont
will be effective 1 October 2024. To ensure a smooth transition, Debra Goodin will remain on the Board until late
February 2025. Peter Wasow will retire at the conclusion of the Annual Meeting in October 2024.
Final distribution declaration
On 28 August 2024, the Directors declared a final distribution of 29.5 cents per security ($378 million) for APA
Group, an increase of 1.7%, or 0.5 cents per security over the previous corresponding period (30 June 2023: 29.0
cents). This comprises a distribution of 28.48 cents per security from APA Infrastructure Trust and a distribution
of 1.02 cents per security from APA Investment Trust.
The APA Infrastructure Trust distribution represents 28.48 cents per security partially franked profit distribution.
The APA Investment Trust distribution represents a 1.02 cent per security unfranked profit distribution. The
distribution is expected to be paid on 18 September 2024.
Other than noted above and as disclosed elsewhere in this report, in the interval between 30 June 2024 and
the date of this report, no matter or circumstance has significantly affected, or may significantly affect, the
Group’s operations, the results of those operations, or the Group’s state of affairs, in future financial years.
Review and results of operations
The Consolidated Entity reported net profit after tax of $20,468,000 for the year ended 30 June 2024 and total
revenue of $25,844,000.
Operating Financial Review
Information on the operations and financial position of the Group and its business strategies and prospects
is set out on pages 10–64 of the Annual Report and forms part of this Directors’ Report.
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
181
APA GROUP
ANNUAL REPORT 2024
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Distributions
Final FY23 distribution paid
13 September 2023
Interim FY24 distribution paid
14 March 2024
Cents per
security
Total
distribution
$’000
Cents per
security
Total
distribution
$’000
APA Investment Trust profit distribution
1.00
11,820
0.57
7,330
APA Investment Trust capital distribution
6.34
74,834
0.30
3,789
Total
7.34
86,654
0.87
11,119
Final FY24 distribution payable
18 September 2024
Cents per
security
Total
distribution
$’000
APA Investment Trust profit distribution
1.02
13,138
APA Investment Trust capital distribution
–
–
Total
1.02
13,138
Directors
Information on Directors and Company Secretaries
For information relating to the qualifications and experience of Directors and Company Secretaries refer
to pages 68–69.
Directorships of other listed companies
Directorships of other listed companies held by Directors at any time in the three years immediately before
the end of the financial year:
Name
Company
Period of directorship
Michael Fraser
Aurizon Holdings Limited
February 2016 to February 2022
Orora Limited
Since April 2022
Adam Watson
—
—
James Fazzino
Tassal Group Limited
May 2020 to November 2022
Qube Holdings Limited
Since February 2024
Nino Ficca
—
—
Debra Goodin
Atlas Arteria Limited
Since September 2017, Chair since November 2020
Ansell Limited
Since December 2022
Rhoda Phillippo
Dexus Funds Management Limited
Since February 2023
Peter Wasow
Oz Minerals Limited
November 2017 to May 2023
Directors’ Report (continued)
182
ANNUAL REPORT 2024
APA GROUP
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Directors’ meetings
Further information on the Board and Committees can be found in APA’s Corporate Governance Statement
which is available on our website.
During the year, 11 Board meetings, four Risk Management Committee meetings, four Audit and Finance
Committee meetings, five People and Remuneration Committee meetings, five Safety and Sustainability
Committee meetings, and six Nomination Committee meetings were held.
Board
People and
Remuneration
Committee
Audit and
Finance
Committee
Risk
Management
Committee
Safety and
Sustainability
Committee
Nomination
Committee
Directors
A
B
A
B
A
B
A
B
A
B
A
B
Michael Fraser
11
11
–
–
–
–
–
–
5
5
6
6
Adam Watson
11
11
–
–
–
–
–
–
–
–
–
–
James Fazzino
11
11
–
–
4
4
4
4
5
5
2
2
Nico Ficca1
8
8
3
3
–
–
–
–
4
4
2
2
Debra Goodin
11
9
–
–
4
4
4
4
1
1
6
6
Rhoda Phillippo
11
11
5
5
4
4
4
4
–
–
2
2
Peter Wasow
11
10
5
5
4
4
4
4
–
–
2
2
A Number of meetings held during the time the Director held office or was a member of the committee during the financial year.
B Number of meetings attended.
1
Nino Ficca appointed as a Director effective 1 September 2023.
Directors’ security holdings
The aggregate number of APA securities held directly, indirectly or beneficially by Directors or their related
entities at 30 June 2024 is 328,285.
Directors’ relevant interests in APA securities
Name
Fully paid securities as at
1 July 2023
Securities acquired
Securities disposed
Fully paid securities as at
30 June 2024
Michael Fraser
102,942
3,547
–
106,489
Adam Watson
55,556
41,844
–
97,400
James Fazzino
30,751
3,547
–
34,298
Nino Ficca1
–
12,500
–
12,500
Debra Goodin
24,179
3,547
–
27,726
Rhoda Phillippo
17,960
2,365
–
20,325
Peter Wasow
26,000
3,547
–
29,547
Shirley In’t Veld2
25,000
–
–
25,000
1
Nino Ficca was appointed as a Director effective 1 September 2023 at which time he held nil securities.
2 Shirley In’t Veld retired as a Director 28 March 2024. Balance as at date of ceasing to be a Director.
As at 30 June 2024, Adam Watson held 595,930 performance rights granted under APA Group’s long-term
incentive plan. Each performance right is a right to receive one ordinary stapled security in APA subject
to satisfaction of certain performance hurdles. Further information can be found in section 8 of APA’s
Remuneration Report.
The Directors hold no other rights or options over APA securities. There are no contracts to which a Director
is a party or under which the Director is entitled to a benefit and that confer a right to call for or deliver
APA securities.
Directors’ Report (continued)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
183
APA GROUP
ANNUAL REPORT 2024
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Options granted
No options over unissued APA securities were granted during or since the end of the financial year. No unissued
APA securities were under option at the date of this report. No APA securities were issued during or since the
end of the financial year as a result of an option being exercised over unissued APA securities.
Indemnification of Officers
During the year, the Responsible Entity paid a premium on a contract insuring the Directors and Officers of any
APA Group entity against certain liability incurred in performing those roles. The contract of insurance prohibits
disclosure of the specific nature of the liability and the amount of the premium.
APA Group Limited, in its own capacity and as responsible entity of APA Infra and APA Invest, indemnifies
each Director and Company Secretary, and certain other executives, former executives and officers of the
Responsible Entity or any APA Group entity, under a range of deed polls and indemnity agreements, which
have been in place since 1 July 2000. The indemnity operates to the full extent allowed by law but only to the
extent not covered by insurance and is on terms the Board considers usual for arrangements of this type.
Under its constitution, APA Group Limited (in its personal capacity) indemnifies each person who is or has been
a Director, Company Secretary or Executive Officer of that Company.
The Responsible Entity has not otherwise, during or since the end of the financial year, indemnified or agreed
to indemnify an officer or external auditor of the Responsible Entity or any APA Group entity against a liability
incurred by such an officer or auditor.
Information required for registered schemes
Fees paid to the Responsible Entity and its associates (including Directors and Secretaries of the Responsible
Entity, related bodies corporate and Directors and Secretaries of related bodies corporate) out of APA scheme
property during the financial year are disclosed in note 18 to the financial statements.
Except as disclosed in this report, neither the Responsible Entity nor any of its associates holds any APA
Investment Trust units.
The number of APA Investment Trust units issued during the financial year, and the number of APA Investment
Trust units on issue at the end of the financial year, are disclosed in note 13 to the financial statements.
The value of the Consolidated Entity’s assets as at the end of the financial year is disclosed in the balance
sheet in total assets, and the basis of valuation is disclosed in the notes to the financial statements.
Auditor’s independence declaration
A copy of the independence declaration of the auditor, Deloitte Touche Tohmatsu, as required under section
307C of the Corporations Act 2001, is included on page 203.
Rounding of amounts
The Consolidated Entity is an entity of the kind referred to in ASIC Corporations Instrument 2016/191.
In accordance with that Class Order, amounts in the Directors’ Report and the Financial Report are
rounded to the nearest thousand dollars, unless otherwise indicated.
Authorisation
The Directors’ Report is signed in accordance with a resolution of the Directors of the Responsible Entity
made pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the Directors
Michael Fraser
Adam Watson
Chairman
Chief Executive Officer and Managing Director
Sydney, 28 August 2024.
Directors’ Report (continued)
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
184
ANNUAL REPORT 2024
APA GROUP
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
2024
2023
Note
$'000
$'000
Revenue
4
25,844
23,738
Expenses
4
(5,376)
(13)
Profit before tax
20,468
23,725
Income tax expense
5
–
–
Profit for the year
20,468
23,725
Other comprehensive income
–
–
Total comprehensive income for the year
20,468
23,725
Profit attributable to:
Unitholders of the parent
20,468
23,725
20,468
23,725
Total comprehensive income attributable to:
Unitholders of the parent
20,468
23,725
Earnings per unit
2024
2023
Basic and diluted (cents per unit)
6
1.6
2.0
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 185
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Consolidated Statement of Financial Position
2024
2023
Note
$'000
$'000
Current assets
Receivables
8
112
977
Non-current assets
Receivables
8
–
3,262
Other financial assets
11
747,154
562,963
Non-current assets
747,154
566,225
Total assets
747,266
567,202
Current liabilities
Trade and other payables
9
–
25
Total liabilities
–
25
Net assets
747,266
567,177
Equity
Issued capital
13
734,128
555,356
Retained earnings
13,138
11,821
Total equity
747,266
567,177
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
186 APA GROUP ANNUAL REPORT 2024
Consolidated Statement of Changes in Equity
Issued capital
Retained earnings
Total
Note
$'000
$'000
$'000
Balance at 1 July 2022
644,417
13,502
657,919
Profit for the year
–
23,725
23,725
Total comprehensive income for the year
–
23,725
23,725
Distributions to unitholders
7
(89,061)
(25,406)
(114,467)
Balance at 30 June 2023
555,356
11,821
567,177
Balance at 1 July 2023
555,356
11,821
567,177
Profit for the year
–
20,468
20,468
Total comprehensive income for the year
–
20,468
20,468
Distributions to unitholders
7
(78,623)
(19,151)
(97,774)
Issue of securities under institutional share placement ¹
13
200,475
–
200,475
Issue of securities under retail security purchase plan ²
13
59,400
–
59,400
Issue of securities under distribution reinvestment plan
13
670
–
670
Security issue costs
(3,150)
–
(3,150)
Balance at 30 June 2024
734,128
13,138
747,266
1
On 29 August 2023, APA Infrastructure Trust and APA Investment Trust issued 79.4 million new stapled securities via institutional placement at an issue price of
$8.50. Amounts are disclosed net of transaction costs.
2
On 22 September 2023, APA Infrastructure Trust and APA Investment Trust issued 23.7 million new stapled securities via security purchase plan at an issue
price of $8.46. Amounts are disclosed net of transaction costs.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 187
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Consolidated Statement of Cash Flows
2024
2023
Note
$'000
$'000
Cash flows from operating activities
Trust distribution - related party
19,374
19,704
Interest received - related parties
6,470
3,298
Proceeds from finance leases
–
1,167
Receipts from customers
–
507
Payments to suppliers
(1,275)
(7)
Net cash provided by operating activities
24,569
24,669
Cash flows from investing activities
(Payments to)/Proceeds from related party
(184,190)
89,798
Net cash (used in)/provided by investing activities
(184,190)
89,798
Cash flows from financing activities
Proceeds from issue of securities
259,875
–
Payment of security issue costs
(3,150)
–
Distributions to unitholders (net of DRP issuance)
7
(97,104)
(114,467)
Net cash provided by/(used in) financing activities
159,621
(114,467)
Net movement in cash and cash equivalents
–
–
Cash and cash equivalents at beginning of financial year
–
–
Cash and cash equivalents at end of financial year
–
–
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is
classified within operating cash flows.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
188 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements
Basis of Preparation
1. About this report
In the following financial statements, note disclosures are grouped into six sections being: Basis of Preparation;
Financial Performance; Operating Assets and Liabilities; Capital Management; Group Structure; and Other. Each
note sets out the accounting policies applied in producing the results along with any key judgements and
estimates used.
Basis of Preparation
189
1.
About this report
189
2.
General information
190
Financial Performance
191
3.
Segment information
191
4.
Profit from operations
191
5.
Income tax
191
6.
Earnings per unit
192
7.
Distributions
192
Operating Assets and Liabilities
193
8.
Receivables
193
9.
Payables
193
10.
Leases
193
Capital Management
195
11.
Other financial assets
195
12.
Financial risk management
196
13.
Issued capital
198
Group Structure
199
14.
Subsidiaries
199
Other
199
15.
Commitments and contingencies
199
16.
Director and Executive Key Management
Personnel remuneration
199
17.
Remuneration of external auditor
200
18.
Related party transactions
200
19.
Parent entity information
201
20.
Adoption of new and revised Accounting
Standards
201
21.
Events occurring after reporting date
201
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 189
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Basis of Preparation (continued)
2. General information
APA Investment Trust ("APA Invest" or "Trust") is one of the two stapled trusts of APA Group, the other stapled trust
being APA Infrastructure Trust. Each of APA Infrastructure Trust and APA Investment Trust are registered managed
investment schemes regulated by the Corporations Act 2001. APA Investment Trust units are "stapled" to APA
Infrastructure Trust units on a one-to-one basis so that one APA Investment Trust unit and one APA Infrastructure
Trust unit form a single stapled security which trades on the Australian Securities Exchange under the code "APA".
This financial report represents the consolidated financial statements of APA Investment Trust and its controlled
entities (together the "Consolidated Entity"). For the purposes of preparing the consolidated financial report, the
Consolidated Entity is a for-profit entity.
All intragroup transactions and balances have been eliminated on consolidation. Where necessary, adjustments
are made to the assets, liabilities, and results of subsidiaries, joint arrangements and associates to bring their
accounting policies into line with those used by the Consolidated Entity.
APA Investment Trust's registered office and principal place of business is as follows:
Level 25
580 George Street
SYDNEY NSW 2000
Tel: (02) 9693 0000
APA Investment Trust holds APA Group’s investments.
The financial report for the year ended 30 June 2024 was authorised for issue in accordance with a resolution of
the directors on 28 August 2024.
This general purpose financial report has been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board (AASB), and also complies with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board.
The financial report has been prepared on the basis of historical cost, except for the revaluation of financial
instruments. The financial report is presented in Australian dollars and all values are rounded to the nearest
thousand dollars ($000) in accordance with ASIC Corporations Instrument 2016/191, unless otherwise stated.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
190 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Financial Performance
3. Segment information
The Consolidated Entity has one reportable segment being energy infrastructure investment.
The Consolidated Entity is an investing entity within the APA Infrastructure Trust stapled group. As the Trust only
operates in one segment, it has not disclosed segment information separately.
4. Profit from operations
Profit before income tax includes the following items of income and expense:
2024
2023
$'000
$'000
Revenue
Distributions
Trust distribution - related party
19,374
19,704
19,374
19,704
Finance income
Interest - related parties
6,470
3,298
Finance lease income - related party
–
229
6,470
3,527
Other revenue
Other
–
507
Total revenue
25,844
23,738
Expenses
Loss on modification of finance lease receivable ¹
(4,239)
–
Management and administration fees
(1,119)
–
Audit fees
(18)
(13)
Total expenses
(5,376)
(13)
1
Lease payment terms under the existing finance lease have been modified effective from 1 July 2023 resulting in a modification loss for the period. Refer to
Note 10 for further detail.
Revenue is recognised at an amount that reflects the consideration to which the Consolidated Entity expects to
be entitled. Amounts disclosed as revenue are net of duties and taxes paid. Revenue is recognised for the major
business activities as follows:
•
Interest revenue, which is recognised as it accrues and is determined using the effective interest method;
•
Distribution revenue, which is recognised when the right to receive a distribution has been established; and
•
Finance lease income, which is recognised when receivable.
5. Income tax
Income tax expense is not brought to account in respect of APA Investment Trust as, pursuant to Australian
taxation laws, APA Investment Trust is not liable for income tax provided that its realised taxable income
(including any assessable realised capital gains) is fully distributed to its unitholders each year.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 191
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Earnings per unit
2024
2023
cents
cents
Basic and diluted earnings per unit
1.6
2.0
The earnings and weighted average number of units used in the calculation of basic and diluted earnings per
unit are as follows:
2024
2023
$'000
$'000
Net profit attributable to unitholders for calculating basic and diluted earnings per unit
20,468
23,725
2024
2023
No. of units
No. of units
000
000
Weighted average number of ordinary securities used in the calculation of:
Basic earnings per unit
1,264,628
1,179,894
Diluted earnings per unit ¹
1,267,957
1,182,119
1
Includes 4 million (2023: 3 million) performance rights granted under the long-term incentive plan. Each performance right is a right to receive one ordinary
stapled security in APA Group subject to satisfaction of certain performance hurdles and board approval. Further information can be found in the most
recent annual report. APA Group has historically instructed Link Market Services to acquire securities on-market to minimise dilution of existing
securityholders.
7. Distributions
2024
2024
2023
2023
cents per
Total
cents per
Total
unit
$'000
unit
$'000
Recognised amounts
Final FY23 distribution paid on 13 September 2023
(30 June 2022: Final FY22 distribution paid on 14 September 2022)
Profit distribution ¹
1.00
11,821
1.14
13,502
Capital distribution
6.34
74,834
5.15
60,682
7.34
86,655
6.29
74,184
Interim distribution paid on 14 March 2024
(31 December 2022: Interim FY23 distribution paid on 16 March 2023)
Profit distribution ¹
0.57
7,330
1.01
11,904
Capital distribution
0.30
3,789
2.40
28,379
0.87
11,119
3.41
40,283
Total distributions recognised
Profit distribution ¹
1.57
19,151
2.15
25,406
Capital distribution (note 13)
6.64
78,623
7.55
89,061
8.21
97,774
9.70
114,467
Unrecognised amounts
Final FY24 distribution payable on 18 September 2024 ²
(30 June 2023: Final FY23 distribution paid on 13 September 2023)
Profit distribution ¹
1.02
13,138
1.00
11,821
Capital distribution
–
–
6.34
74,834
1.02
13,138
7.34
86,655
1
Profit distributions unfranked (30 June 2022 and 31 December 2022: partially franked; 30 June 2023 and 31 December 2023: unfranked).
2
Record date 28 June 2024.
The final distribution in respect of the financial year has not been recognised in this financial report because the
final distribution was not declared, determined nor publicly confirmed prior to the end of the financial year.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
192 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities
8. Receivables
2024
2023
$'000
$'000
Other receivables
112
–
Finance lease receivables (note 10)
–
977
Current
112
977
Finance lease receivables (note 10)
–
3,262
Non-current
–
3,262
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables. GST receivable or GST payable is only recognised once a tax invoice has been received or issued.
Lease payment terms under the existing finance lease have been modified effective from 1 July 2023 resulting in
a modification loss for the period recognised through profit and loss.
In determining the recoverability of a receivable, the Consolidated Entity considers any change in the credit
quality of the receivable from the date the credit was initially granted up to the reporting date. The directors have
assessed that there is no expected credit loss for the finance lease receivable.
None of the above receivables are past due.
9. Payables
2024
2023
$'000
$'000
Other payables
–
25
Trade and other payables are recognised when the Consolidated Entity becomes obliged to make future
payments resulting from the purchase of goods and services. Trade and other payables are stated at amortised
cost.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables. GST receivable or GST payable is only recognised once a tax invoice has been received or issued.
10. Leases
Consolidated Entity as lessor
Leases are classified as finance leases when the terms of the lease transfer substantially all of the risks and
rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating
leases.
Finance lease receivables relate to the lease of a pipeline lateral.
There are no contingent rental payments due.
Finance lease receivables
2024
2023
$'000
$'000
Not longer than 1 year
–
1,168
Longer than 1 year and not longer than 5 years
–
3,501
Longer than 5 years
–
–
Minimum future lease payments receivable ¹
–
4,669
Less: future finance income
–
(430)
Present value of lease receivables
–
4,239
Included in the Consolidated Statement of Financial Position as part of:
Current receivables (note 8)
–
977
Non-current receivables (note 8)
–
3,262
–
4,239
1
Minimum future lease payments receivable includes the aggregate of all lease payments receivable and any guaranteed residual.
The Consolidated Entity does not have any operating leases where it is the lessor.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 193
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities
10. Leases (continued)
Amounts due from a lessee under a finance lease are recorded as receivables. Finance lease receivables are
initially recognised at the amount equal to the present value of the minimum lease payments receivable plus the
present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance
lease receipts are allocated between interest revenue and reduction of the lease receivable over the term of the
lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the
lease.
During the year, lease payment terms under the existing finance lease have been modified, effective from 1 July
2023 resulting in a modification loss for the period recognised through profit and loss.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
194 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management
11. Other financial assets
2024
2023
$'000
$'000
Non-current
Loan to related party
639,775
455,584
Investment in related party
107,379
107,379
747,154
562,963
Investment in related party
The investment in related party reflects GasNet Australia Investments Trust's ("GAIT") investment in 100% of the B
Class units in GasNet A Trust. The B Class units give GAIT preferred rights to the income and invested capital of
GasNet A Trust, but hold no voting rights. The A Class unitholder may however suspend for a period or terminate
all of the B Class unitholder rights to distributions of income and capital, with the exception of the initial
investment. As such, GAIT neither controls nor has a significant influence over GasNet A Trust. GasNet Australia
Trust, a related party wholly owned by APA Group, owns 100% of the A Class units in GasNet A Trust and,
accordingly, GasNet A Trust is included in the consolidation of the APA Group.
The investment in B Class units is measured at fair value through profit or loss. The measurement of fair value
takes into consideration the fact that the A Class unitholders have discretion over the return on the initial capital
invested and the instrument can be called on demand. Therefore, fair value is measured based on the amount
that can be called on demand, adjusted for the credit and liquidity risk of GasNet A Trust. As the impact of credit
and liquidity risk is not significant, the fair value of the B Class units is not materially different to the amount of
capital invested.
The Consolidated Entity does not intend to dispose of its interest in GasNet A Trust.
Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost:
•
The financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI):
•
The financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains
or losses recognised in profit or loss to the extent they are not part of a designated hedging relationship.
Derivatives that the Consolidated Entity does not elect to apply hedge accounting or does not meet the hedge
accounting criteria, are classified as 'financial assets/liabilities' for accounting purposes and accounted at FVTPL.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in
an active market are classified as ‘loans and receivables’. Trade and other receivables are stated at their
amortised cost less impairment.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 195
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
11. Other financial assets (continued)
Impairment of financial assets
In relation to the impairment of financial assets, it is no longer necessary for a credit event to have occurred
before credit losses are recognised. The Consolidated Entity applies an expected credit loss (ECL) model to
account for ECL and changes in these ECL at each reporting date to reflect changes in credit risk since initial
recognition of a financial asset.
The Consolidated Entity recognises a loss allowance for ECL on investments in debt instruments that are
measured at amortised cost, for example, loans advanced to related parties and receivables. For finance lease
receivables, the Consolidated Entity applies the simplified approach to assessing ECL, which is based on the
Consolidated Entity’s historical credit losses and reasonable and supportable information that is available
without undue cost.
The amount of ECL under either approach is updated at each reporting date to reflect changes in credit risk
since initial recognition of the respective financial instrument.
The Consolidated Entity recognises an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account. Aside from the additional
disclosure requirements, the history of collection rates and forward-looking information that is available without
undue cost or effort shows that the Consolidated Entity does not have an expected loss on collection of debtors
or loans.
12. Financial risk management
The Consolidated Entity's Treasury team is responsible for the overall management of the Consolidated Entity’s
capital raising activities, liquidity, lender relationships and engagement, debt portfolio management, interest rate
and foreign exchange hedging, credit rating maintenance and third party indemnities (bank guarantees) within
risk management parameters reviewed by the Board.
The Consolidated Entity's activities generate financial instruments comprising of cash, receivables, payables and
interest bearing liabilities which expose it to various risks as summarised below:
(a) Market risk including currency risk, interest rate risk and price risk;
(b) Credit risk; and
(c) Liquidity risk.
Risk
Sources
Risk management framework
Financial exposure
Market
Commercial transactions in
foreign currency and funding
activities
The Audit and Finance Committee ("AFC")
approves written principles for overall risk
management, as well as policies covering
specific areas such as liquidity risk, funding
risk, foreign currency risk, interest rate risk
and credit risk. The Consolidated Entity's
AFC ensures there is an appropriate Risk
Management Policy for the management
of treasury risk and compliance with the
policy through the review of monthly
reporting to the Board from the Treasury
team.
Refer to 12 (a) market risk
Credit
Cash, receivables, interest bearing
liabilities and hedging
The carrying amount of financial assets
recorded in the financial statements, net
of any collateral held or bank guarantees
held by the Consolidated Entity,
represents the Consolidated Entity's
maximum exposure to credit risk in
relation to those assets. Refer to 12 (b)
credit risk.
Liquidity
Payables
Refer to 12 (c) liquidity risk
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
196 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Capital Management (continued)
12. Financial risk management (continued)
(a) Market risk
The Consolidated Entity's exposure is primarily to the financial risk of changes in interest rates. There has been no
change to the Consolidated Entity's exposure to market risk or the manner in which it manages and measures
the risk from the previous year.
Interest rate sensitivity analysis
Sensitivity analysis has been determined based on the exposure to interest rates on loans with related parties. A
100 basis points increase or decrease is used and represents management's assessment of the possible change
in interest rates within a given period of time. At reporting date, if interest rates had been 100 basis points higher
or lower and all other variables were constant, the Consolidated Entity's net profit would increase by $1,705,000 or
decrease by $1,694,000 (2023: increase by $733,000 or decrease by $724,000 respectively). This is mainly
attributable to the Consolidated Entity's exposure to interest rates on its variable rate inter-entity balances. The
sensitivity has increased due to higher inter-entity balances and a higher effective interest rate.
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Consolidated Entity.
Credit risk management
The Consolidated Entity has adopted the policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral or bank guarantees where appropriate as a means of mitigating the risk of loss. For financial
investments or market risk hedging, the Consolidated Entity's policy is to only transact with counterparties that
have a credit rating of A- (Standard & Poor's)/A3 (Moody's) or higher unless specifically approved by the Board.
Where a counterparty's rating falls below this threshold following a transaction, no other transactions can be
executed with that counterparty until the exposure is sufficiently reduced or their credit rating is upgraded above
the Consolidated Entity's minimum threshold. The Consolidated Entity's exposure to financial instrument and
deposit credit risk is closely monitored against counterparty credit limits imposed by the Treasury Risk
Management Policy approved by the AFC. These limits are regularly reviewed by the Board or AFC.
Overview of the Consolidated Entity's exposure to credit risk
The carrying amount of financial assets recorded in the financial statements, net of any allowances, represents
the Consolidated Entity’s maximum exposure to credit risk in relation to those assets.
(c) Liquidity risk
The Consolidated Entity's exposure to liquidity risk is limited to other payables, which are nil in the current year
(2023: $25,000, due in less than 1 year).
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 197
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Capital Management (continued)
13. Issued capital
2024
2023
$'000
$'000
Units
1,283,352,928 securities, fully paid (2023: 1,179,893,848 units, fully paid) ¹
734,128
555,356
2024
2023
No. of units
2024
No. of units
2023
000
$'000
000
$'000
Movements
Balance at beginning of financial year
1,179,894
555,356
1,179,894
644,417
Issue of securities under institutional share placement ²
79,412
200,475
–
–
Issue of securities under retail security purchase plan ³
23,652
59,400
–
–
Issue of securities under distribution reinvestment plan ⁴
395
670
–
–
Share issue costs
–
(3,150)
–
–
Capital distributions paid (note 7)
–
(78,623)
–
(89,061)
Balance at end of financial year
1,283,353
734,128
1,179,894
555,356
1
Fully paid units carry one vote per unit and carry the right to distributions.
2
On 29 August 2023, APA Infrastructure Trust and APA Investment Trust issued 79.4 million new stapled securities via institutional placement at an issue price of
$8.50, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
3
On 22 September 2023, APA Infrastructure Trust and APA Investment Trust issued 23.7 million new stapled securities via security purchase plan at an issue
price of $8.46, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
4 The interim distribution was declared on 22 February 2024. The interim distribution resulted in $3 million being raised by the distribution reinvestment plan
(DRP) through the issue of 0.4 million stapled securities at a price of $8.27, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a
net asset basis.
The Trust does not have a limited amount of authorised capital.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
198 APA GROUP ANNUAL REPORT 2024
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Notes to the consolidated financial statements (continued)
Group Structure
14. Subsidiaries
Subsidiaries are entities controlled by APA Investment Trust. Control exists where APA Investment Trust has power
over an entity, i.e. existing rights that give APA Investment Trust the current ability to direct the relevant activities of
the entity (those that significantly affect the returns); exposure, or rights, to variable returns from its involvement
with the entity; and the ability to use its power to affect those returns. The country of registration or incorporation
is also their principal place of business.
Ownership interest
2024
2023
Name of entity
Country of registration
%
%
Parent entity
APA Investment Trust
Subsidiary
GasNet Australia Investments Trust
Australia
100
100
Other
15. Commitments and contingencies
The Consolidated Entity had no material contingent assets, liabilities and commitments as at 30 June 2024 and
30 June 2023.
16. Director and Executive Key Management Personnel remuneration
Remuneration of Directors
The aggregate remuneration of Directors of the Consolidated Entity is set out below:
2024
2023
$
$
Short-term employment benefits
1,742,212
1,673,901
Post-employment benefits
165,545
149,671
Total remuneration: Non-Executive Directors
1,907,757
1,823,572
Short-term employment benefits
2,475,001
4,112,061
Post-employment benefits
27,399
31,563
Cash settled security-based payments
–
138,770
Equity settled security-based payments
900,215
2,575,647
Total remuneration: Executive Directors
3,402,615
6,858,041
Total remuneration: Directors
5,310,372
8,681,613
Remuneration of Executive Key Management Personnel
The aggregate remuneration of Executive Key Management Personnel of the Consolidated Entity is set out below:
2024
2023
$
$
Short-term employment benefits
5,966,026
6,528,421
Post-employment benefits
102,746
72,854
Cash settled security-based payments
92,405
179,993
Equity settled security-based payments
1,802,626
3,286,022
Total remuneration: Executive Key Management Personnel ¹˒²
7,963,803
10,067,289
1
During FY24, APA appointed Garrick Rollason as Chief Financial Officer on 16 October 2023 and Petrea Bradford as Group Executive Operations on 28 August
2023. Their remuneration is included in the remuneration disclosure of Key Management Personnel.
2
During FY23, the remuneration for the former Chief Executive Officer and Managing Director, Rob Wheals up to 30 September 2022 and current Chief
Executive Officer and Managing Director, Adam Watson from 1 October 2022 (previously Chief Financial Officer and Key Management Personnel), are
included in both the remuneration disclosure for Directors and Executive Key Management Personnel. The remuneration for Group Executive Strategy &
Commercial, Julian Peck to 25 August 2022 and Group Executive Commercial Development, Ross Gersbach to 22 August 2022 are included in the
remuneration disclosure for Executive Key Management Personnel.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 199
Notes to the consolidated financial statements (continued)
Other (continued)
17. Remuneration of external auditor
Amounts received or due and receivable by Deloitte Touche Tohmatsu for:
Audit or review of the financial reports
2024
2023
$
$
Group
6,930
6,600
Total audit or review of the financial reports
6,930
6,600
Statutory assurance services required by legislation to be provided by the auditor
ASIC compliance plan audit
7,035
6,700
Total statutory assurance services required by legislation to be provided by the auditor
7,035
6,700
Total remuneration of external auditor
13,965
13,300
18. Related party transactions
(a) Equity interest in related parties
Details of the percentage of ordinary securities held in subsidiaries are disclosed in note 14.
(b) Responsible Entity – APA Group Limited
The Responsible Entity is wholly owned by APA Infrastructure Limited (2023: 100% owned by APA Infrastructure
Limited).
(c) Transactions with related parties within the Consolidated Entity
During the financial year, the following transactions occurred between the Trust and its other related parties:
•
loans advanced and payments received on long-term inter-entity loans; and
•
payments of distributions.
All transactions between the entities that comprise the Consolidated Entity have been eliminated on
consolidation.
Refer to note 14 for details of the entities that comprise the Consolidated Entity.
(d) Transactions with other related parties
APA Investment Trust and its controlled entities have a loan receivable balance with another entity in APA Group.
This loan is repayable on agreement between the parties. Interest is recognised by applying the effective interest
method, agreed between the parties at the end of each month and is determined by reference to market rates.
The following balances arising from transactions between APA Investment Trust and its other related parties are
outstanding at reporting date:
•
current receivables owing from a subsidiary of APA Infrastructure Trust for amounts due under a finance lease
arrangement totalling $nil (2023: $977,000);
•
non-current receivables owing from a subsidiary of APA Infrastructure Trust for amounts due under a finance
lease arrangement $nil (2023: $3,262,000); and
•
non-current receivables totalling $639,775,000 (2023: $455,584,000) are owing from a subsidiary of APA
Infrastructure Trust for amounts due under inter-entity loans.
APA Group Limited
Management fees of $1,119,000 (2023: $2,470,000) were paid to the Responsible Entity as reimbursement of costs
incurred on behalf of APA Investment Trust. No amounts were paid directly by APA Investment Trust to the
Directors of the Responsible Entity.
APA Infrastructure Trust
No management fees were reimbursed by APA Infrastructure Trust during the year (2023: $2,470,000).
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
200 APA GROUP ANNUAL REPORT 2024
Notes to the consolidated financial statements (continued)
Other (continued)
19. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the financial information
below, are the same as those applied in the consolidated financial statements.
2024
2023
$'000
$'000
Financial position
Assets
Current assets
112
977
Non-current assets
747,154
566,225
Total assets
747,266
567,202
Liabilities
Current liabilities
–
25
Total liabilities
–
25
Net assets
747,266
567,177
Equity
Issued capital
734,128
555,356
Retained earnings
13,138
11,821
Total equity
747,266
567,177
Financial performance
Profit for the year
20,468
23,725
Total comprehensive income
20,468
23,725
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
No guarantees have been entered into by the parent entity in relation to the debts of its subsidiaries.
Contingent liabilities of the parent entity
No contingent liabilities have been identified in relation to the parent entity.
20. Adoption of new and revised Accounting Standards
Standards and Interpretations affecting amounts reported in the current period
There have not been any new or revised Standards and Interpretations issued by the AASB that are relevant and
material to the Consolidated Entity's operations that are effective for the current reporting period.
Standards and Interpretations issued not yet adopted
At the date of authorisation of the financial statements, the Standards and Interpretations on issue but not yet
effective are not expected to have material impact on the Consolidated Entity's accounting policies or any of the
amounts recognised in the financial statements.
21. Events occuring after reporting date
On 28 August 2024, the Board announced the retirement of Debra Goodin and Peter Wasow and the
appointment of Samantha Lewis and David Lamont as Directors of APA. The appointment of Samantha Lewis
and David Lamont will be effective 1 October 2024. To ensure a smooth transition, Debra Goodin will remain on
the Board until late February 2025. Peter Wasow will retire at the conclusion of the Annual Meeting in October
2024.
Final distribution declaration
On 28 August 2024, the Directors declared a final distribution for the 2024 financial year of 1.02 cents per unit ($13
million). The distribution represents a 1.02 cents per security unfranked profit distribution. The distribution is
expected to be paid on 18 September 2024.
Other than the events disclosed above, there have not been any events or transactions that have occurred
subsequent to year end that would require adjustment to or disclosure in the financial statements.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
ANNUAL REPORT 2024 APA GROUP 201
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
Declaration by the Directors of APA Group Limited
The Directors declare that:
(a) in the Directors’ opinion, there are reasonable grounds to believe that APA Investment Trust will be able to pay
its debts as and when they become due and payable;
(b) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with Accounting Standards and giving a true and fair view of the
financial position and performance of the Consolidated Entity;
(c) in the Directors’ opinion, the financial statements and notes thereto are in accordance with International
Financial Reporting Standards issued by the International Accounting Standards Board; and
(d) the Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer
required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors of the Responsible Entity made pursuant to section 295(5)
of the Corporations Act 2001.
On behalf of the Directors
Michael Fraser
Chairman
Adam Watson
CEO and Managing Director
SYDNEY, 28 August 2024
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
202 APA GROUP ANNUAL REPORT 2024
>ŝĂďŝůŝƚLJůŝŵŝƚĞĚďLJĂƐĐŚĞŵĞĂƉƉƌŽǀĞĚƵŶĚĞƌWƌŽĨĞƐƐŝŽŶĂů^ƚĂŶĚĂƌĚƐ>ĞŐŝƐůĂƚŝŽŶ͘
DĞŵďĞƌŽĨĞůŽŝƚƚĞƐŝĂWĂĐŝĨŝĐ>ŝŵŝƚĞĚĂŶĚƚŚĞĞůŽŝƚƚĞŽƌŐĂŶŝƐĂƚŝŽŶ͘
ϮϴƵŐƵƐƚϮϬϮϰ
dŚĞŝƌĞĐƚŽƌƐ
W'ƌŽƵƉ>ŝŵŝƚĞĚ
ĂƐZĞƐƉŽŶƐŝďůĞ ŶƚŝƚLJĨŽƌW/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ
>ĞǀĞůϮϱ͕ϱϴϬ'ĞŽƌŐĞ^ƚƌĞĞƚ
^LJĚŶĞLJE^tϮϬϬϬ
ĞĂƌŝƌĞĐƚŽƌƐ
Auditor’s Independence Declaration to W'ƌŽƵƉ>ŝŵŝƚĞĚĂƐZĞƐƉŽŶƐŝďůĞ ŶƚŝƚLJĨŽƌ
W/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ
/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƐĞĐƚŝŽŶϯϬϳŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕/ĂŵƉůĞĂƐĞĚƚŽƉƌŽǀŝĚĞƚŚĞĨŽůůŽǁŝŶŐĚĞĐůĂƌĂƚŝŽŶŽĨ
ŝŶĚĞƉĞŶĚĞŶĐĞƚŽƚŚĞĚŝƌĞĐƚŽƌƐŽĨW'ƌŽƵƉ>ŝŵŝƚĞĚĂƐZĞƐƉŽŶƐŝďůĞ ŶƚŝƚLJĨŽƌW/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ͘
ƐůĞĂĚĂƵĚŝƚƉĂƌƚŶĞƌĨŽƌƚŚĞĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨW/ŶǀĞƐƚŵĞŶƚdƌƵƐƚĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϬ
:ƵŶĞϮϬϮϰ͕/ĚĞĐůĂƌĞƚŚĂƚƚŽƚŚĞďĞƐƚŽĨŵLJŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨ͕ƚŚĞƌĞŚĂǀĞďĞĞŶŶŽĐŽŶƚƌĂǀĞŶƚŝŽŶƐŽĨ͗
;ŝͿ
ƚŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĂƵĚŝƚ͖ĂŶĚ
;ŝŝͿ
ĂŶLJĂƉƉůŝĐĂďůĞĐŽĚĞŽĨƉƌŽĨĞƐƐŝŽŶĂůĐŽŶĚƵĐƚŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĂƵĚŝƚ͘
zŽƵƌƐĨĂŝƚŚĨƵůůLJ
>K/dd dKh, dK,Dd^h
:ĂŵŝĞ'Ăƚƚ
WĂƌƚŶĞƌ
ŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐ
ĞůŽŝƚƚĞdŽƵĐŚĞdŽŚŵĂƚƐƵ
EϳϰϰϵϬϭϮϭϬϲϬ
YƵĂLJYƵĂƌƚĞƌdŽǁĞƌ
ϱϬƌŝĚŐĞ^ƚƌĞĞƚ
^LJĚŶĞLJE^tϮϬϬϬ
dĞů͗нϲϭ;ϬͿϮϵϯϮϮϳϬϬϬ
&Ădž͗нϲϭ;ϬͿϮϵϯϮϮϳϬϬϭ
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Auditor’s Independence Declaration
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
203
APA GROUP
ANNUAL REPORT 2024
>ŝĂďŝůŝƚLJůŝŵŝƚĞĚďLJĂƐĐŚĞŵĞĂƉƉƌŽǀĞĚƵŶĚĞƌWƌŽĨĞƐƐŝŽŶĂů^ƚĂŶĚĂƌĚƐ>ĞŐŝƐůĂƚŝŽŶ͘
DĞŵďĞƌŽĨĞůŽŝƚƚĞƐŝĂWĂĐŝĨŝĐ>ŝŵŝƚĞĚĂŶĚƚŚĞĞůŽŝƚƚĞŽƌŐĂŶŝƐĂƚŝŽŶ͘
ĞůŽŝƚƚĞdŽƵĐŚĞdŽŚŵĂƚƐƵ
EϳϰϰϵϬϭϮϭϬϲϬ
YƵĂLJYƵĂƌƚĞƌdŽǁĞƌ
ϱϬƌŝĚŐĞ^ƚƌĞĞƚ
^LJĚŶĞLJE^tϮϬϬϬ
dĞů͗нϲϭ;ϬͿϮϵϯϮϮϳϬϬϬ
&Ădž͗нϲϭ;ϬͿϮϵϯϮϮϳϬϬϭ
ǁǁǁ͘ĚĞůŽŝƚƚĞ͘ĐŽŵ͘ĂƵ
Independent Auditor’s Report to the hŶŝƚŚŽůĚĞƌƐŽĨ
W/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ
ZĞƉŽƌƚŽŶƚŚĞƵĚŝƚŽĨƚŚĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ
KƉŝŶŝŽŶ
tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨW/ŶǀĞƐƚŵĞŶƚdƌƵƐƚĂŶĚŝƚƐĐŽŶƚƌŽůůĞĚŝŶƚĞƌĞƐƚƐ;ƚŚĞ“ŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ”Ϳ
ǁŚŝĐŚĐŽŵƉƌŝƐĞƐƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂƐĂƚϯϬ:ƵŶĞϮϬϮϰ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨ
ƉƌŽĨŝƚŽƌůŽƐƐĂŶĚŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJĂŶĚƚŚĞ
ĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͕ĂŶĚŶŽƚĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐ
ŵĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐLJŝŶĨŽƌŵĂƚŝŽŶĂŶĚŽƚŚĞƌĞdžƉůĂŶĂƚŽƌLJŝŶĨŽƌŵĂƚŝŽŶ͕ĂŶĚthe directors’ declaration.
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐ
ĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐ͗
• 'ŝǀŝŶŐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ’s financial position as at ϯϬ:ƵŶĞϮϬϮϰĂŶĚŽĨŝƚƐĨŝŶĂŶĐŝĂů
ƉĞƌĨŽƌŵĂŶĐĞĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ĂŶĚ
• ŽŵƉůLJŝŶŐǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĂŶĚƚŚĞŽƌƉŽƌĂƚŝŽŶƐZĞŐƵůĂƚŝŽŶƐϮϬϬϭ͘
ĂƐŝƐĨŽƌŽƉŝŶŝŽŶ
tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘KƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƵŶĚĞƌƚŚŽƐĞ
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
ƌĞƉŽƌƚ͘tĞĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐ
ŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭĂŶĚƚŚĞĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞĐĐŽƵŶƚŝŶŐWƌŽĨĞƐƐŝŽŶĂůΘ ƚŚŝĐĂů^ƚĂŶĚĂƌĚƐ
Board’s APES 110 ŽĚĞŽĨ ƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂůĐĐŽƵŶƚĂŶƚƐ;ŝŶĐůƵĚŝŶŐ/ŶĚĞƉĞŶĚĞŶĐĞ^ƚĂŶĚĂƌĚƐͿ;ƚŚĞŽĚĞͿƚŚĂƚ
ĂƌĞƌĞůĞǀĂŶƚƚŽŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶƵƐƚƌĂůŝĂ͘tĞŚĂǀĞĂůƐŽĨƵůĨŝůůĞĚŽƵƌŽƚŚĞƌĞƚŚŝĐĂůƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶ
ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽĚĞ͘
tĞĐŽŶĨŝƌŵƚŚĂƚƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĚĞĐůĂƌĂƚŝŽŶƌĞƋƵŝƌĞĚďLJƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ǁŚŝĐŚŚĂƐďĞĞŶŐŝǀĞŶƚŽƚŚĞ
ĚŝƌĞĐƚŽƌƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ͕ǁŽƵůĚďĞŝŶƚŚĞƐĂŵĞƚĞƌŵƐŝĨŐŝǀĞŶƚŽƚŚĞĚŝƌĞĐƚŽƌƐĂƐĂƚƚŚĞƚŝŵĞŽĨƚŚŝƐ
auditor’s report.
tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘
KƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ
The directors of the Responsible Entity (the “Ěirectors”) are responsible for the other information. The other
ŝŶĨŽƌŵĂƚŝŽŶĐŽŵƉƌŝƐĞƐƚŚĞŝŶĨŽƌŵĂƚŝŽŶŝŶĐůƵĚĞĚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ’s ĂŶŶƵĂůƌĞƉŽƌƚĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ
:ƵŶĞϮϬϮϰbut does not include the financial report and our auditor’s report thereon.
KƵƌŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĚŽĞƐŶŽƚĐŽǀĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚǁĞĚŽŶŽƚĞdžƉƌĞƐƐĂŶLJĨŽƌŵŽĨ
ĂƐƐƵƌĂŶĐĞĐŽŶĐůƵƐŝŽŶƚŚĞƌĞŽŶ͘
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
204
ANNUAL REPORT 2024
APA GROUP
/ŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŽƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽƌĞĂĚƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚ͕ŝŶĚŽŝŶŐ
ƐŽ͕ĐŽŶƐŝĚĞƌǁŚĞƚŚĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝƐŵĂƚĞƌŝĂůůLJŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŽƌŽƵƌŬŶŽǁůĞĚŐĞ
ŽďƚĂŝŶĞĚŝŶƚŚĞĂƵĚŝƚ͕ŽƌŽƚŚĞƌǁŝƐĞĂƉƉĞĂƌƐƚŽďĞŵĂƚĞƌŝĂůůLJŵŝƐƐƚĂƚĞĚ͘
/Ĩ͕ďĂƐĞĚŽŶƚŚĞǁŽƌŬǁĞŚĂǀĞƉĞƌĨŽƌŵĞĚ͕ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞƌĞŝƐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚŝƐŽƚŚĞƌ
ŝŶĨŽƌŵĂƚŝŽŶ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚƚŚĂƚĨĂĐƚ͘tĞŚĂǀĞŶŽƚŚŝŶŐƚŽƌĞƉŽƌƚŝŶƚŚŝƐƌĞŐĂƌĚ͘
ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐŽĨƚŚĞĚŝƌĞĐƚŽƌƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ
dŚĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJĂƌĞƌĞƐƉŽŶƐŝďůĞ͗
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&ŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂƚƌƵĞ
ĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶ
ĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ͖ĂŶĚ
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&ŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐƚŚĞĚŝƌĞĐƚŽƌƐĚĞƚĞƌŵŝŶĞŝƐŶĞĐĞƐƐĂƌLJƚŽĞŶĂďůĞƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ͕ĂŶĚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽ
ĨƌĂƵĚŽƌĞƌƌŽƌ͘
/ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ƚŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞĂďŝůŝƚLJŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJƚŽ
ĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ĚŝƐĐůŽƐŝŶŐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŵĂƚƚĞƌƐƌĞůĂƚĞĚƚŽŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚƵƐŝŶŐƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶ
ďĂƐŝƐŽĨĂĐĐŽƵŶƚŝŶŐƵŶůĞƐƐƚŚĞĚŝƌĞĐƚŽƌƐĞŝƚŚĞƌŝŶƚĞŶĚƚŽůŝƋƵŝĚĂƚĞƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJŽƌƚŽĐĞĂƐĞŽƉĞƌĂƚŝŽŶƐ͕Žƌ
ŚĂƐŶŽƌĞĂůŝƐƚŝĐĂůƚĞƌŶĂƚŝǀĞďƵƚƚŽĚŽƐŽ͘
Auditor’s ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐĨŽƌƚŚĞĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ
KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞŝƐĨƌĞĞĨƌŽŵ
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
ZĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞďƵƚŝƐŶŽƚĂŐƵĂƌĂŶƚĞĞƚŚĂƚĂŶĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ
ƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐǁŝůůĂůǁĂLJƐĚĞƚĞĐƚĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞŶŝƚĞdžŝƐƚƐ͘DŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞ
ĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞ
ĞdžƉĞĐƚĞĚƚŽŝŶĨůƵĞŶĐĞƚŚĞĞĐŽŶŽŵŝĐĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘
ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕ǁĞĞdžĞƌĐŝƐĞƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚĂŶĚ
ŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĐĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘tĞĂůƐŽ͗
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/ĚĞŶƚŝĨLJĂŶĚĂƐƐĞƐƐƚŚĞƌŝƐŬƐŽĨŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕
ĚĞƐŝŐŶĂŶĚƉĞƌĨŽƌŵĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚŽƐĞƌŝƐŬƐ͕ĂŶĚŽďƚĂŝŶĂƵĚŝƚĞǀŝĚĞŶĐĞƚŚĂƚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚ
ĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘dŚĞƌŝƐŬŽĨŶŽƚĚĞƚĞĐƚŝŶŐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐĨƌŽŵ
ĨƌĂƵĚŝƐŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƚŝŽŶĂůŽŵŝƐƐŝŽŶƐ͕
ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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KďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞĂƵĚŝƚŝŶŽƌĚĞƌƚŽĚĞƐŝŐŶĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƚŚĂƚĂƌĞ
ĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞ
ŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ’s internal control.
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ǀĂůƵĂƚĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐĂŶĚ
ƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŵĂĚĞďLJƚŚĞĚŝƌĞĐƚŽƌƐ͘
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ŽŶĐůƵĚĞŽŶƚŚĞĂƉƉƌŽƉƌiateness of the directors’ use of the going concern basis of accounting and, based on
ƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚ͕ǁŚĞƚŚĞƌĂŵĂƚĞƌŝĂůƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐƌĞůĂƚĞĚƚŽĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐƚŚĂƚŵĂLJĐĂƐƚ
ƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ’s ability toĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘/ĨǁĞĐŽŶĐůƵĚĞƚŚĂƚĂ
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
ŝŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ƚŽŵŽĚŝĨLJŽƵƌŽƉŝŶŝŽŶ͘KƵƌĐŽŶĐůƵƐŝŽŶƐĂƌĞďĂƐĞĚ
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
ŵĂLJĐĂƵƐĞƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJƚŽĐĞĂƐĞƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘
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ǀĂůƵĂƚĞƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶ͕ƐƚƌƵĐƚƵƌĞĂŶĚĐŽŶƚĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚ
ǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƌĞƉƌĞƐĞŶƚƐƚŚĞƵŶĚĞƌůLJŝŶŐƚƌĂŶƐĂĐƚŝŽŶƐĂŶĚĞǀĞŶƚƐŝŶĂŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌ
ƉƌĞƐĞŶƚĂƚŝŽŶ͘
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
205
APA GROUP
ANNUAL REPORT 2024
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KďƚĂŝŶƐƵĨĨŝĐŝĞŶƚĂƉƉƌŽƉƌŝĂƚĞĂƵĚŝƚĞǀŝĚĞŶĐĞƌĞŐĂƌĚŝŶŐƚŚĞĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŽĨƚŚĞĞŶƚŝƚŝĞƐŽƌďƵƐŝŶĞƐƐ
ĂĐƚŝǀŝƚŝĞƐǁŝƚŚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘tĞĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌ
ƚŚĞĚŝƌĞĐƚŝŽŶ͕ƐƵƉĞƌǀŝƐŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJ’s audit. We remain solely responƐŝďůĞĨŽƌ
ŽƵƌĂƵĚŝƚŽƉŝŶŝŽŶ͘
tĞĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞĚŝƌĞĐƚŽƌƐƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƚƚĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚƚŝŵŝŶŐŽĨƚŚĞĂƵĚŝƚĂŶĚ
ƐŝŐŶŝĨŝĐĂŶƚĂƵĚŝƚĨŝŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐĂŶLJƐŝŐŶŝĨŝĐĂŶƚĚĞĨŝĐŝĞŶĐŝĞƐŝŶŝŶƚĞƌŶĂůĐŽŶƚƌŽůƚŚĂƚǁĞŝĚĞŶƚŝĨLJĚƵƌŝŶŐŽƵƌĂƵĚŝƚ͘
tĞĂůƐŽƉƌŽǀŝĚĞƚŚĞĚŝƌĞĐƚŽƌƐǁŝƚŚĂƐƚĂƚĞŵĞŶƚƚŚĂƚǁĞŚĂǀĞĐŽŵƉůŝĞĚǁŝƚŚƌĞůĞǀĂŶƚĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐƌĞŐĂƌĚŝŶŐ
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matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
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APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Independent Auditor’s Report (continued)
206
ANNUAL REPORT 2024
APA GROUP
Additional information
Additional information required by the Listing Rules of the Australian Securities Exchange Limited
and not provided elsewhere in this report (the information is applicable as at 30 June 2024).
Twenty largest shareholders
No. of
securities
%
HSBC Custody Nominees (Australia) Limited
335,367,367
26.13
J P Morgan Nominees Australia Pty Limited
149,333,086
11.64
BNP Paribas Nominees Pty Ltd
111,030,387
8.65
Citicorp Nominees Pty Limited
95,722,879
7.46
BNP Paribas Nominees Pty Ltd
32,079,900
2.50
Custodial Services Limited
31,769,228
2.48
BNP Paribas Noms Pty Ltd
14,942,158
1.16
Argo Investments Limited
14,308,525
1.11
BNP Paribas Nominees Pty Ltd
9,771,813
0.76
BKI Investment Company Limited
9,716,652
0.76
National Nominees Limited
9,466,270
0.74
HSBC Custody Nominees (Australia) Limited
9,228,154
0.72
BNP Paribas Nominees Pty Ltd
9,214,970
0.72
Netwealth Investments Limited
7,939,265
0.62
Citicorp Nominees Pty Limited
3,583,054
0.28
Netwealth Investments Limited
3,011,059
0.23
HSBC Custody Nominees (Australia) Limited
2,888,907
0.23
HSBC Custody Nominees (Australia) Limited – A/C 2
2,707,669
0.21
Citicorp Nominees Pty Limited
2,002,774
0.16
Pacific Custodians Pty Limited
1,982,898
0.15
Total
856,067,015
66.71
Distribution of holders
Ranges
No. of
holders
%
No. of securities
%
100,001 and over
147
0.16
893,355,893
69.61
10,001 to 100,000
9,280
9.79
186,672,573
14.55
5,001 to 10,000
12,459
13.14
88,624,937
6.91
1,001 to 5,000
38,631
40.74
100,805,566
7.85
1 to 1,000
34,296
36.17
13,893,959
1.08
Total
94,813
100.00
1,283,352,928
100.00
Interests of substantial secruityholders
Date of notice
Number of voting securities
highlighted in notice
Voting power
highlighted in notice
UniSuper Limited
4 April 2023
117,678,377
9.97%
State Street Corporation
20 January 2022
85,157,130
7.22%
Blackrock Group
16 July 2021
82,844,967
7.02%
Vanguard Group
6 January 2022
59,009,213
5.00%
Voting rights
On a show hands, each holder has one vote.
On a poll, each holder has one vote for each dollar of the value of the total interests they have in the scheme.
On-market buy-back
There is no current on-market buy-back.
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
207
APA GROUP
ANNUAL REPORT 2024
Five-year financial summary
Financial performance (statutory)
FY24
FY23
FY22
FY21
FY20
Revenue
$m
3,064
2,913
2,732
2,605
2,591
Revenue excluding pass-through1
$m
2,591
2,401
2,236
2,145
2,130
Underlying EBITDA2
$m
1,893
1,725
1,692
1,629
1,650
Total Report EBITDA3
$m
1,736
1,686
1,630
1,639
1,652
Depreciation and amortisation expense
$m
(919)
(750)
(735)
(674)
(651)
Reported EBIT3
$m
817
936
895
965
1,001
Net interest expense3
$m
(579)
(459)
(483)
(505)
(508)
Significant items – before income tax
$m
835
–
28
(397)
–
Income tax expense
$m
(75)
(190)
(180)
(62)
(184)
Profit after tax including significant items
$m
998
287
260
1
309
Significant items – after income tax
$m
879
–
20
(278)
–
Profit after tax excluding significant items
$m
119
287
240
279
309
Financial Position
Total assets
$m
19,563
15,866
15,836
14,742
15,994
Total drawn debt4
$m
12,893
11,240
11,146
9,666
9,984
Total equity
$m
3,248
1,910
2,629
2,951
3,200
Operating Cash Flow
Operating cash flow5
$m
1,156
1,206
1,197
1,051
1,088
Free cash flow6
$m
1,073
1,070
1,081
902
957
Key Financial Ratios
Earnings per security including significant items
cents
78.9
24.3
22.1
0.1
26.2
Earnings per security excluding significant items
cents
9.4
24.3
20.4
23.7
26.2
Free cash flow per security
cents
83.6
90.7
91.6
76.4
81.1
Distribution per security
cents
56.0
55.0
53.0
51.0
50.0
Funds From Operations to Net Debt7
%
10.3
11.0
11.4
10.8
11.7
Funds From Operations to Interest7
times
3.2
3.4
3.5
3.0
3.2
Weighted average number of securities
m
1,265
1,180
1,180
1,180
1,180
EBITDA by Segment (excluding Significant Items)
Underlying EBITDA
Energy Infrastructure
East Coast Gas
$m
669
645
646
628
649
West Coast Gas
$m
347
305
289
271
271
Wallumbilla Gladstone Pipeline
$m
657
620
578
550
539
Contracted power generation
$m
249
199
194
175
171
Electricity Transmission
$m
37
24
–
–
–
Total Energy Infrastructure
$m
1,959
1,793
1,707
1,624
1,630
Asset Management
$m
69
56
73
80
63
Energy Investments
$m
26
23
28
31
36
Corporate costs
$m
(161)
(147)
(116)
(105)
(75)
1
Pass-through revenue is offset by pass-through expense within EBITDA. Any management fee earned for the provision of these services is recognised
as part of asset management revenues.
2 Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) excludes recurring items arising from other activities, transactions
that are not directly attributable to the performance of APA Group’s business operations and significant items.
3 Excludes significant items.
4 APA’s ability to repay debt at relevant due dates of the drawn facilities. This amount represents current and non-current borrowings as per balance
sheet and is adjusted for deferred borrowing costs, the effect of unwinding of discount, unrealised foreign exchange differences reported in equity
and deducting other financial liabilities that are reported as part of borrowings in the balance sheet.
5 Operating cash flow = net cash from operations after interest and tax payments.
6 Free cash flow is Operating Cash Flow adjusted for strategically significant transformation projects, acquisition and integration costs and capital
returns from joint ventures less stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and technology
lifecycle costs.
7 FFO/net debt and FFO/Interest calculated in line with S&P methodology. Historical ratios have been revised reflecting S&P revisions to the historical
calculations.
208
ANNUAL REPORT 2024
APA GROUP
Annual Meeting details
Date:
Thursday, 24 October 2024
Time:
10.30am (AEDT)
Venue:
Telstra Sydney Customer Insights Centre
400 George Street, Sydney NSW 2000
Please refer to the APA Group Notice of Meeting
or the APA Group website for more information
APA group responsible entity and registered office
APA Group Limited ACN 091 344 704
Level 25, 580 George Street
Sydney NSW 2000
PO Box R41
Royal Exchange NSW 1225
Telephone: +61 2 9693 0000
Facsimile:
+61 2 9693 0093
Website:
apa.com.au
ASX listing
In this report, the term ‘APA securities’ refers to stapled
securities each comprising a unit in APA Infrastructure
Trust stapled to a unit in APA Investment Trust and
traded on the Australian Securities Exchange (ASX)
under the code ‘APA’. APA Group Limited is the
Responsible Entity of those trusts.
APA Group registry
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
Locked Bag A14
Sydney South NSW 1235
Telephone: +61 1800 992 312
Facsimile:
+61 2 9287 0303
Email:
apagroup@linkmarketservices.com.au
Website:
linkmarketservices.com.au
Please note: Link Market Services (part of Link Group)
was acquired by Mitsubishi UFJ Trust and Banking
Corporation, a consolidated subsidiary of Mitsubishi
UFJ Financial Group, Inc. (MUFG) on 16 May 2024.
Link Group is now known as MUFG Pension &
Market Services.
Mailing and contact information is currently
unchanged. Over the coming months, Link Market
Services will also progressively rebrand to its
new name MUFG Corporate Markets, a division
of MUFG Pension & Market Services.
Securityholder details
Securityholders must notify the APA Group registry
immediately of any changes to their address
or banking arrangements. Securityholders with
enquiries should also contact the APA Group registry.
Distribution payments
Distributions will be paid semi-annually in March
and September. Securityholders will receive
annual tax statements with the final distribution
in September. Payment to securityholders residing
in Australia and New Zealand will be made only
by direct credit into an Australian or New Zealand
bank account. Securityholders with enquiries
should contact the APA Group registry.
Distribution Reinvestment Plan
The Distribution Reinvestment Plan (DRP) was
reactivated on 25 October 2023. The DRP enables
securityholders to increase their APA holding by
reinvesting either all or part of their distribution
payments into additional fully paid APA stapled
securities in an easy and cost-effective way.
Securityholders will not incur any brokerage,
commission or other transaction costs to acquire
stapled securities under the DRP. Securityholders
wishing to participate, or to change their
participation, should provide instructions to the
APA Group registry.
Online information
Further information on APA is available at
apa.com.au, including:
• results, market releases and news
• asset and business information
• corporate responsibility and sustainability reporting
• securityholder information, such as the current
APA security price, distribution and tax information.
Electronic communication
Securityholders can elect to receive communication
electronically by registering their email address with
the APA Group registry.
Investor information
Calendar of events
Final distribution FY24 record date
28 June 2024
Final distribution FY24 payment date
18 September 2024
Annual Meeting
24 October 2024
Interim distribution FY25 record date
31 December 2024
Interim results announcement
24 February 20251
Interim distribution FY25 payment date
17 March 20251
1
Subject to change.
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
209
APA GROUP
ANNUAL REPORT 2024
Glossary
Term
Definition
AASB
Australian International Financial Reporting Standards
Abatement
Measures that companies take to prevent, reduce or eliminate sources of GHG emissions within
their value chain.
AEMC
Australian Energy Market Commission
AEMO
Australian Energy Market Operator
AER
Australian Energy Regulator
AGN
Australian Gas Network
APA Infra
APA Infrastructure Trust
APA Invest
APA Investment Trust
APA
APA Group
APAIL
APA Infrastructure Limited
ASX
Australian Stock Exchange
AUD
Australian dollar
BCA
Business Council of Australia
BESS
Battery Energy Storage System
Carbon offsets
(carbon credits, offsets)
Broadly refers to a reduction in GHG emissions – or an increase in carbon storage
(e.g. through land restoration or the planting of trees) – used to compensate for emissions
that occur elsewhere.
CCS
Carbon Capture and Storage
CEDA
Committee for Economic Development of Australia
CEO
Chief Executive Officer
CES
Customer Experience Score
CFO
Chief Financial Officer
Climate risk
In reference to the materiality matrix, this topic refers to the assessment, management and
disclosure of risks and opportunities associated with climate change.
Climate Transition Plan (CTP)
APA’s Climate Transition Plan updates, consolidates and transparently communicates
APA’s commitments and performance in managing climate change risks and opportunities,
as the energy transition accelerates.
CO2-e
(carbon dioxide equivalent)
The universal unit of measurement to indicate the global warming potential (GWP) of each
GHG, expressed in terms of the GWP of one unit of carbon dioxide (CO2). It is used to evaluate
releasing (or avoiding releasing) different GHGs against a common basis. See
apa.com.au/globalassets/asx-releases/2022/climate-transition-plan-2022
Collective bargaining
agreements
Formal agreements between a particular employer and a group of employees that set out
workplace terms and conditions for that group of employees and operate for a fixed term
until replaced by a new agreement.
Contractor
An individual, company or other legal entity that provides goods and services to APA, carries out
work or performs services pursuant to a contract for service. This includes sub-contractors and
contingent workers. A person or company engaged to provide labour or skills and paid on invoice.
Decarbonise, decarbonisation
Removing or reducing the amount of carbon dioxide emitted into the atmosphere.
Distribution payout ratio
Total distribution applicable to the financial year as a percentage of free cash flow
EBIT
Earnings before interest and tax
EDF
Electricité de France
210
ANNUAL REPORT 2024
APA GROUP
Term
Definition
EII
Energy Infrastructure Investments
Emissions intensity
For a particular reporting period, total aggregate greenhouse gas emissions per unit for
some activity or output specific to a particular emission Scope or across different Scopes.
For example, emissions per throughput of gas is an intensity measure.
Employee
An individual who works for APA under a contract of employment. They are engaged through
the company’s payroll (so subject to PAYG withholding tax and super).
ENA
Energy Networks Australia – the national industry body representing Australia's electricity
transmission and distribution gas distribution networks.
Energy Charter
A national CEO-led collaboration that supports the energy sector towards
a customer-centric future. See theenergycharter.com.au/
Energy consumption
All energy consumed and produced by APA across all facilities
Energy transition
Reducing reliance on greenhouse gas-intensive sources of energy to decarbonise the
economy and support the achievement of climate-related targets and goals.
EPA
Environment Protection Agency
ERA
Economic Regulation Authority of Western Australia
ERC
Estimated Rehabilitation Cost
ESG
Environmental, Social and Governance
Executive Leadership Team
(ELT)
Portion of employees aligned to WGEA Management Category:
Key Management Personnel/Head of Business; Key Management Personnel and internationally
based ELT members (excludes CEO)
Extended leadership
Refers to level 3 (L3) and level 4 (L4) workforce who have direct reports at APA (CEO is L1)
Fatality
Work-related safety incident that results in death to a person
FID
Final Investment Decision
Free Cash Flow (FCF)
Operating Cash Flow adjusted for strategically significant transformation projects, acquisition
and integration costs and capital returns from joint ventures less stay-in-business (SIB) capex.
SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.
Fuels of the future
A wide range of carbon-neutral fuels produced using renewable or clean energy sources
such as biogas and hydrogen.
Fugitives (fugitive emissions)
The unintentional release of gas in connection with, or because of, the extraction, processing,
storage or delivery of natural gas.
FY (financial year)
Period between 1 July and 30 June
GJ
Gigajoule
Goal (climate-related)
An ambition to seek an outcome for which there is no current pathway(s), but for which
efforts will be pursued towards addressing that challenge, subject to certain assumptions
or conditions
Greenhouse gas (GHG)
Gas that can trap heat when emitted within the atmosphere. The greenhouse gases included
under the GHG Protocol are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PCFs), sulphur hexafluoride (SF6) and nitrogen
trifluoride (NF3).
GRI
Global Reporting Initiative. See globalreporting.org
GSOO
Gas Statement of Opportunities
Hard-to-abate
Any sector for which the transition to net zero has no near-term decarbonisation pathways,
including due to the lack of commercially viable technology.
HSEH
Health, Safety, Environment and Heritage
IFRS
International Financial Reporting Standards
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
211
APA GROUP
ANNUAL REPORT 2024
Term
Definition
Large-scale generation
certificate (LGC)
Represents 1 MWh of electricity generated from an eligible renewable electricity source.
Lost Time Injury (LTI)
A work-related injury or illness that resulted in time lost from work of one day/shift or more.
A Lost Time Injury must be certified by advice from a qualified medical practitioner.
Lower emissions
The characteristic of having lower levels of associated potential GHG emissions when
compared to historical and/or current conventions or analogues, for example relating
to an otherwise similar resource, process, system, product or service, or activity.
LTIFR
Lost Time Injury Frequency Rate – Injury (LTI) count/per million hours
MOU
Memorandum of Understanding
Net emissions
Gross GHG emissions for a reporting period reduced by the number of carbon offsets
surrendered.
Net zero
Achieving an overall balance between greenhouse gas emissions produced and
greenhouse gas emissions taken out of the atmosphere.
Off grid
A facility that is not connected to the National Electricity Market (NEM) or the
South West Interconnected System (SWIS)
Operational emissions
Scope 1 and Scope 2 emissions for assets (facilities) under APA’s operational control.
Pass-through revenue
Pass-through revenue is offset by pass-through expense within EBITDA.
Any management fee earned for the provision of these services is recognised
as part of asset management revenues.
PGP
Parmelia Gas Pipeline
PSHIFR
Potential Serious Harm Incident Frequency Rate
RAP
Reconciliation Action Plan
RAPWG
RAP Working Group
Renewable electricity
Electricity generated from renewable energy sources, as defined within the Australian
Government’s Renewable Energy (Electricity) Act 2000.
Renewable energy
Energy from renewable energy sources, as defined within the Australian Government’s
Renewable Energy (Electricity) Act 2000.
Renewable gas
Carbon-neutral gas substitutes that do not generate additional greenhouse gas emissions
when burnt. Renewable gases include biomethane and hydrogen.
REZ
Renewable Energy Zones
SDG
The Sustainable Development Goals (SDGs) were adopted by all UN Member States in 2015
as a universal call to action to end poverty, protect the planet and ensure all people enjoy
peace and prosperity by 2030.
SIB
Stay in Business
TCFD
Taskforce on Climate-Related Financial Disclosures
TNFD
Taskforce on Nature-related Financial Disclosures
TRIFR
Total Recordable Injury Frequency Rate
Target (climate-related)
An intended outcome in relation to which we have identified one or more pathways
for delivery of that outcome, subject to certain assumptions or conditions.
Underlying EBITDA
Earnings before interest, tax, depreciation, and amortisation (EBITDA) excludes recurring items
arising from other activities, transactions that are not directly attributable to the performance
of APA Group's business operations and significant items
VRE
Variable Renewable Energy
WHS
Work Health and Safety
WORM
Western Outer Ring Main
212
ANNUAL REPORT 2024
APA GROUP
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Quay Quarter Tower
50 Bridge Street
Sydney, NSW, 2000
Australia
Phone: +61 2 9322 7000
www.deloitte.com.au
Independent Limited Assurance Report to the Directors of APA Group Limited
Conclusion
We have undertaken a limited assurance engagement on APA Group Limited’s (“APA”) selected Safety
Performance metrics disclosed in the APA’s Sustainability Data Book for the period 1 July 2023 to 30 June
2024 (“FY24 Data Book”) as referenced in the APA’s Annual Report for the period 1 July 2023 to 30 June
2024 (“FY24 Annual Report”).
Based on the procedures performed and the evidence obtained, nothing has come to our attention that
causes us to believe, that the selected Safety Performance metrics for the period 1 July 2023 to 30 June
2024 presented below (the “Subject Matter Information”) and included in the Safety Performance table in
section [1 - Our People], in APA’s FY24 Sustainability Data Book referenced on page 29 of the FY24 Annual
Report, have not been prepared, in all material respects, in accordance with APA’s Basis of Preparation
(“Reporting Criteria”), as referenced in APA’s FY24 Sustainability Data Book.
Subject Matter Information
Unit
Fatalities
Total fatalities
count
Employees
count
Contractors
count
Safety Indicators
Health & Safety Near Miss Frequency
Rate
Total Near Miss Reported / per million hours
Total Recordable Injury Frequency
Rate (TRIFR)
Injury (LTI,MOTI, MITI) count / per million hours
TRIFR - Employees
Injury (LTI,MOTI, MITI) count / per million hours
TRIFR - Contractors
Injury (LTI,MOTI, MITI) count / per million hours
Lost Time Injury Frequency Rate
(LTIFR)
Injury (LTI count / per million hours
LTIFR - Employees
Injury (LTI count /per million hours
LTIFR - Contractors
Injury (LTI count /per million hours
Basis for Conclusion
We conducted our limited assurance engagement in accordance with Australian Standard on Assurance
Engagements ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial
Information (“ASAE 3000”), issued by the Australian Auditing and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Responsibilities of APA Directors
The APA Directors are responsible for:
a) ensuring that the Subject Matter Information is prepared in accordance with the Reporting
Criteria;
b) confirming the measurement or evaluation of the underlying subject matter against the
applicable criteria, including that all relevant matters are reflected in the Subject Matter
Information;
Sustainability assurance
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
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c)
designing, establishing and maintaining an effective system of internal control over its
operations and financial reporting, including, without limitation, systems designed to ensure
achievement of its control objectives and its compliance with applicable laws and regulations;
and
d) the electronic presentation of the Subject Matter Information, related Basis of Preparation and
our limited assurance report on the website.
Our Independence and Quality Management
We have complied with relevant ethical requirements, which are founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality and professional behaviour
including those contained in APES 110 Code of Ethics for Professional Accountants (including Independence
Standards).
The firm applies Auditing Standard Auditing Standard ASQM 1 Quality Management for Firms that Perform
Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related
Services Engagements, which requires the firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Assurance Practitioner’s Responsibilities
Our responsibility is to express a limited assurance conclusion on APA’s Subject Matter Information as
evaluated against the Reporting Criteria based on the procedures we have performed and the evidence we
have obtained. ASAE 3000 requires that we plan and perform our procedures to obtain limited assurance
about whether, anything has come to our attention that causes us to believe that the Subject Matter
Information is not prepared, in all material respects, in accordance with the Reporting Criteria.
A limited assurance engagement in accordance with ASAE 3000 involves identifying areas where a material
misstatement of the Subject Matter Information is likely to arise, addressing the areas identified and
considering the process used to prepare the Subject Matter Information. A limited assurance engagement is
substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment
procedures, including an understanding of internal control, and the procedures performed in response to the
assessed risks.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower than the assurance that would have been obtained had
a reasonable assurance engagement been performed. Accordingly, we do not express a reasonable assurance
opinion about whether the Subject Matter Information has been prepared, in all material respects, in
accordance with the Reporting Criteria.
Our procedures included:
•
Enquiries with management and staff responsible for the Subject Matter Information to understand
the preparation and review processes;
•
Inspecting documents as part of the walk-throughs of key systems and processes for collating,
calculating, and reporting the respective Subject Matter Information in the FY24 Sustainability Data
Book;
•
On a sample basis, inspecting underlying information to test whether the Subject Matter Information
has been prepared and reported in line with APA’s policies, procedures and methodologies applicable
to the Reporting Criteria;
•
Analytical reviews over material data streams to identify any material anomalies for the Subject
Matter Information; and
•
Agreeing overall data sets for the Subject matter Information to the final data contained in the FY24
Sustainability Data Book.
Sustainability assurance (continued)
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Inherent Limitations
Because of the inherent limitations of an assurance engagement, together with the inherent limitations of
any system of internal control there is an unavoidable risk that it is possible that fraud, error, or non-
compliance with laws and regulations, where there has been concealment through collusion, forgery and
other illegal acts may occur and not be detected, even though the engagement is properly planned and
performed in accordance with Standards on Assurance Engagements.
Non-financial data may be subject to more inherent limitations given both its nature and the methods used
for determining, calculating, and sampling or estimating such data.
Restricted use
The Reporting Criteria used for this engagement was designed for a specific purpose of the Directors reporting
on selected Safety Performance metrics included in the APA FY24 Annual Report. As a result, the Subject
Matter Information may not be suitable for another purpose.
This report has been prepared for use by the Directors of APA for the purpose of providing assurance over
selected Safety Performance metrics included in the APA FY24 Annual Report. We disclaim any assumption
of responsibility for any reliance on this report to any person other than the Directors of APA or for any
purpose other than that for which it was prepared.
DELOITTE TOUCHE TOHMATSU
Chi Woo
Partner
Chartered Accountants
Sydney, 27 August 2024
Sustainability assurance (continued)
OVERVIEW
OPERATING &
FINANCIAL REVIEW
PERFORMANCE
GOVERNANCE
APA INFRASTRUCTURE
TRUST FINANCIAL REPORT
APA INVESTMENT
TRUST FINANCIAL REPORT
ADDITIONAL
INFORMATION
215
APA GROUP
ANNUAL REPORT 2024
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