About this report
The FY25 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 2025. It
should be read in conjunction with the reports
that comprise the FY25 Annual Reporting Suite,
including the Annual Report (with the Climate
Report integrated), Sustainability Data Book,
Results Presentation available from https://
www.apa.com.au/investors
In this report, unless otherwise stated, references
to ‘APA Group’, ‘we’, ‘us’ and ‘our’ refer to APA
comprising the ASX-listed Group consisting of 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 2025 (FY25).
All dollar figures are expressed in Australian
dollars unless otherwise stated.
This report outlines APA Group’s activities –
governed by our purpose, strategy and culture –
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, 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 any
forward-looking statements, 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.
This year, the Climate Report is integrated into the
Annual Report. The Climate Report outlines APA’s
progress against its 2022 Climate Transition Plan
to address climate-related matters, including risks
and opportunities. It has not been prepared as
financial or investment advice or to provide any
guidance in relation to APA's 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 72
and pages 112 to 206 (in respect of APA
Infrastructure Trust) and pages 207 to 229 (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 62.
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 capital
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.
Some of these expressions are intended to identify
forward-looking statements that discuss future
expectations concerning sustainability, including
climate change and energy transition scenarios
and outcomes.
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 56. 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 that this report discusses.
In respect of the scenario analysis disclosed in the
Climate Report, there are also inherent limitations
with this analysis. It is difficult to predict which, if
any, of the scenarios might eventuate. Scenarios
do not constitute definitive outcomes or
probabilities, and scenario analysis relies on
assumptions that may or may not be, or prove
to be, correct and may or may not eventuate.
Scenarios may also be impacted by additional
factors to the assumptions disclosed. Due to the
inherent uncertainties and limitations associated
with measuring greenhouse gas emissions data,
our references to the same are estimates and APA
Group Limited does not guarantee the accuracy
of the information provided and readers should
not place undue reliance on these estimates. The
basis for calculation of the emissions data is
provided in APA’s FY25 Greenhouse Gas Emissions
and Energy Calculation Methodology.
No representation or warranty is made regarding
the accuracy, completeness or reliability of the
forward-looking statements or opinions contained
in this publication, including the Climate Report,
or the assumptions on which either is based.
Investors should carefully consider and 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
(or the assumptions on which they are based) 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 responsibility
or liability (howsoever arising, including due to
negligence, default or lack of care) for any loss,
damage, cost, expense or outgoing of any kind
suffered or incurred by any person arising from
the receipt, interpretation or use of the
information contained in, or inferred from, this
report and do not represent, warrant or guarantee
the success or performance of the matters stated
in this report.
Any opinions expressed in the report are based
on the knowledge and expertise of the persons
forming the opinion at the date the opinion was
formed and may in the future cease to be (and
may never have been) appropriate in light of
subsequent knowledge or attitude.
IFC APA GROUP FY25 ANNUAL REPORT
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.
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 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
in the third year of our integrated reporting
journey, focusing on the development of the value
creation model and metrics to track value drivers
(or ‘capitals’).
The integrated reporting concept refers to a
principles-based, multicapital framework in which
companies can communicate clearly and
concisely about how their strategy, governance,
performance, risk, opportunities and
sustainability-related actions create value in the
context of their external environment.
Our 2025 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. The pages that comprise our
integrated report are from page 2 to 72 as well as
incorporated into our broader reporting suite.
This report aims to align with the
recommendations from the Task Force on
Climate-related Financial Disclosures (TCFD) and
is informed by the Sustainability Accounting
Standards Board (SASB) and the United Nations
Sustainability Development Goals (UN SDGs).
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 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.
Climate disclosures
APA’s disclosure approach in this report aims to
align with the recommendations of the Financial
Stability Board (FSB) Task Force on Climate-related
Financial Disclosures (TCFD), which address
strategy, risk management, governance and
metrics and targets. The Sustainability Data Book
TCFD section provides a full index of APA's
responses to the TCFD disclosure
recommendations within the APA FY25 Annual
Report, 2025 Climate Transition Plan (CTP), FY25
Sustainability Data Book and other APA
disclosures.
Organisational boundary: Unless noted otherwise,
the organisational boundary for all emissions
calculations, targets and goals relates to assets
under APA’s operational control, as defined by the
Greenhouse Gas (GHG) Protocol. Except where
noted otherwise, FY25 data is used throughout the
document where we refer to emissions and
progress against targets and goals. The position
statements, policies and governance
arrangements referenced apply to APA Group
Limited and its subsidiaries and controlled entities.
External assurance: We engaged Deloitte to
undertake assurance over selected metrics in the
Climate section of APA’s FY25 Sustainability Data
Book in accordance with the Australian Standard
on Assurance Engagements ASAE 3000 Assurance
Engagements Other than Audits or Reviews of
Historical Financial Information issued by the
Australian Auditing and Assurance Standards
Board. The key performance indicators are to be
read in conjunction with APA’s FY25 Greenhouse
Gas Emissions and Energy Calculation
Methodology. Details of the assurance scope,
procedures and conclusion are included in the
Assurance Report on page 106 to 111 of this report.
Entity details
Business name: APA Group
Ownership and legal form: APA Group (APA)
comprises two registered managed investment
schemes – APA Infrastructure Trust (APA Infra) and
APA Investment Trust (APA Invest) – and their
controlled entities. APA Group Limited is the
responsible entity of APA.
Head office: Level 25, 580 George Street, Sydney
2000
Contact us: If you have any questions or
comments relating to this report, please email
ir@apa.com.au.
Reporting
suite map
Key information
Annual Report
(including Climate
Report)
Corporate
Governance
Statement
Investor
Presentation
Modern Slavery
Statement
Sustainability
Data Book
Climate
Transition Plan
Strategy
•
•
•
Financial
performance
•
•
Operational
performance
•
•
•
•
•
Governance
•
•
•
Risk
•
•
•
•
Customers
and partners
•
•
People and
communities
•
•
•
•
•
Environment
•
•
•
Securityholder
information
•
•
•
All reports are available at apa.com.au once released.
FY25 ANNUAL REPORT APA GROUP i
ii APA GROUP FY25 ANNUAL REPORT
25 years of
securing Australia’s
energy future
Contents
IFC
About this report
64
Governance
IFC
Disclaimer
73
Climate
Report
2
Overview and
highlights
112
APA
Infrastructure
Trust Financial
Report
10
About APA
207
APA
Investment
Trust Financial
Report
20
Our strategy
230
Additional
information
26
Performance
231
Five-year
financial
summary
56
Risks and
opportunities
232
Investor
information
62
Outlook
233
Glossary
Image opposite: Winchelsea Compressor Station, Vic
FY25 ANNUAL REPORT APA GROUP 1
25 years of securing
Australia’s energy future
FY25 marked a milestone for APA. On 13 June 2025
we celebrated 25 years as an ASX-listed company.
Across our sites and offices, our people marked the day
and celebrated how far we’ve come from our humble
beginnings in 2000, listing with just three major
pipeline assets.
Today we own or operate a diverse $27 billion portfolio of
energy assets and transport about half of the nation’s gas.
We’ve also delivered more than two decades of
uninterrupted dividend growth for securityholders, which
we understand makes us one of only two companies
currently listed on the ASX to do this.
Our history of consistent growth continued into FY25 with
a strong financial and operational performance.
Over the past 12 months, we have again achieved revenue,
earnings and distributions growth, while working with our
customers to deliver critical new infrastructure that
supports energy security and transition across Australia.
We have strong momentum in the delivery of our
customer-focused growth strategy, which is to be the
partner of choice for energy infrastructure solutions in
growth markets, including gas transmission and
storage, remote power generation, and gas fired
power generation.
During FY25, we continued to progress major growth
opportunities, with a focus on disciplined capital allocation
and the prioritisation of opportunities that will deliver the
best returns. We have also taken steps to simplify our
business and to become more cost-efficient.
Over the past 12 months, we’ve seen a broader
understanding and acceptance of the essential role that
gas plays in enabling Australia’s energy transition to a
lower carbon future.
This has reinforced our confidence in the long-term critical
part our assets will play in Australia’s energy market. We
are confident that our East Coast Gas Grid (ECGG)
Expansion Plan, early works in the Beetaloo Basin,
opportunities in gas-power generation and ongoing
growth in remote power generation in the Pilbara, will
underpin our growth for years to come.
Financial performance
Our financial performance in FY25 was strong.
Total segment revenue (excluding pass-through revenue)
was up 5.2% to $2,716 million; underlying earnings before
interest, tax, depreciation and amortisation (EBITDA) was
up 6.4% to $2,015 million and towards the top end of
guidance, and we continued to increase underlying EBITDA
margins, reflecting robust asset performance and cost
reduction initiatives. Statutory net profit after tax
decreased to $129 million (FY24: $998 million) driven by
significant items in relation to the acquisition of the Pilbara
Energy System favourably impacting the prior financial
year. Excluding these significant items from FY24, the FY25
Statutory net profit after tax was 8.4% higher than the prior
period.
This strong performance enabled the Board to deliver FY25
distributions of 57.0 cents per security, in line with
guidance and an increase of 1.8% on FY24.
Our people
In FY25, we defined our new purpose, Securing Australia’s
Energy Future, reflecting the role everyone at APA plays in
delivering reliable, affordable and lower emissions energy
to our customers.
We also continued our work to elevate safety and care as
a key part of our culture. Across the year, we maintained a
strong focus on the physical and psychological wellbeing
of our employees and contractors. In February 2025, we
launched our ‘For the things that matter’ initiative,
encouraging everyone at APA to think about the personal
reasons why they make safety and care a priority.
We also embedded our Psychosocial Risk Management
Protocol and delivered psychosocial risk workshops to
improve the way we understand and manage mental
health and wellbeing.
Our FY25 annual engagement survey returned an
Employee Experience score of 70%, consistent with FY24,
and our Inclusion Index, which assesses equity,
authenticity and belonging, rose to 75%, a four-point
increase from FY24.
We also continued to build a pipeline of diverse talent, with
our Graduate, Internship and Apprenticeship programs
recording strong female participation. In FY25, female
representation was 58% in our Graduate program, 66% in
our Internship program and 35% in our Apprenticeship
program.
Operational excellence
Delivering operational excellence underpins our social
licence and our ongoing financial results. In FY25, we
delivered strong asset performances across our portfolio
and continued to work closely with communities,
landholders and traditional owners.
We maintained high levels of reliability across our gas
transmission and remote power generation assets of
99.9% and 99.6% and delivered year-on-year improvement
in high-voltage direct current transmission availability as a
result of targeted maintenance and systems investments.
In FY25, we also completed the delivery of our inaugural
Reflect Reconciliation Action Plan (RAP) and finalised our
Innovate RAP, with endorsement from Reconciliation
Australia in July 2025. Through our Innovate RAP, we will
continue to grow our cultural understanding and
capability, increase First Nations participation across our
supply chain, and support community-led initiatives that
contribute to sustainable, long-term outcomes for all
Australians.
We have introduced our High Performance Agenda across
the organisation. This ongoing program of work, focused
on driving new ways of working, and creating a lean and
competitive customer-focused organisation, will ensure
APA is best placed to deliver our growth strategy, reduce
costs and meet our culture ambitions.
CHAIRMAN AND MANAGING DIRECTOR MESSAGE
2 APA GROUP FY25 ANNUAL REPORT
Creating value
In FY25, we secured and progressed a range of value-
accretive organic growth projects with our organic
growth pipeline over the next three years now estimated
at $2.1 billion, up from $1.8 billion.
This included reaching an agreement with CS Energy
for new pipeline infrastructure connecting our Roma to
Brisbane Pipeline with CS Energy’s proposed Brigalow
Peaking Power Plant, and the acquisition of the Atlas to
Reedy Creek Pipeline, which further extends our east coast
gas transmission network.
APA also executed agreements and early works to deliver
the Sturt Plateau Pipeline in the Northern Territory. The
development of the Beetaloo Basin is critical to ensuring
long-term supply certainty and the Sturt Plateau Pipeline
will ensure gas from the Beetaloo is available to power
the Northern Territory from 2026 and, should well results
continue to positively progress, potentially Australia’s east
coast market beyond that.
This organic growth pipeline will be funded from the
existing balance sheet and Distribution Reinvestment Plan
(DRP).
We also saw increased certainty in our regulatory
environment in FY25, following several regulatory decisions
that support the ongoing execution of our strategy and
our ability to deliver for customers and the Australian
energy market.
In December 2024, the AER made a final decision to
maintain the current form of regulation for the South West
Queensland Pipeline (SWQP). This decision provided us the
confidence to announce our ECGG Expansion Plan, which
has the potential to deliver a 24% increase in north-to-
south gas transport capacity and support the delivery
of new gas-powered generation. We are committed to
working with customers and governments to bring more
domestic gas to market to support energy security and
the transition to a lower carbon future.
In June 2025, we also welcomed the AER’s final decision
to convert Basslink to a regulated asset. This decision will
ensure Basslink can operate sustainably for the benefit of
Tasmanian and Victorian households and businesses over
the long term.
Continuing our progress on sustainability
Our Sustainability Roadmap has continued to support
our delivery of long-term value creation. This has included
continued delivery against our climate commitments
outlined in our 2022 Climate Transition Plan.
In FY25, APA delivered a 6.5% gross reduction and a 13.3%
net reduction (including offsets) in gas infrastructure
emissions and an 11.6% decrease in power generation
operational emissions intensity, compared to our FY21
base year.
For the first time, we will also disclose the outcomes of
our methane measurement work on three of our assets,
using the latest methane measurement technologies and
drawing on international standards. This market-leading
approach to methane measurement and disclosure
will underpin the decarbonisation of our gas
infrastructure portfolio.
APA has now integrated our climate reporting into the
Annual Report in preparation for mandatory climate-
related financial disclosure requirements.
Coinciding with the release of this annual report, we have
now also released our 2025 Climate Transition Plan. This
builds on the successful delivery of our 2022 Climate
Transition Plan, highlighting the ongoing resilience of APA’s
portfolio to physical climate and energy transition risks. We
remain committed to meeting our 2030 gas infrastructure
and methane emissions reduction targets, and our power
generation intensity goal, while continuing to pursue
opportunities to support Australia’s transition to a net
zero economy.
Delivering for securityholders
With strong foundations in place, in FY25 we have been
focused on initiatives that will grow returns for our
securityholders, including cost reduction measures
and the delivery of new growth projects.
APA has continued to action our robust capital
management framework that drives discipline in the
prioritisation of value-accretive initiatives and the
allocation of free cash flow. This was further reinforced by
our decision in June not to participate in current tender
processes underway for major, stand-alone electricity
transmission projects on the east coast.
We were pleased to again deliver distribution growth – our
21st consecutive year of increasing returns for investors.
Looking ahead
In FY26, we will continue to deliver our customer-focused
strategy to capture value from the significant growth
opportunities ahead. This includes ongoing work to deliver
our ECGG Expansion Plan and progress with projects in the
Beetaloo and the Pilbara.
Support for the role of gas in the Australian energy sector
is clear and we are proud of the role we play as Australia’s
energy infrastructure partner. We will maintain our
advocacy for stable policy and regulatory settings to
support strategy execution, while taking proactive steps
to deliver operational efficiencies that create value.
On behalf of the Board and leadership team, thank you
to our employees for their outstanding contribution to
APA’s success. We also extend our appreciation to our
customers, communities, governments and other
stakeholders for their ongoing support and positive
engagement. We are proud of what’s been achieved
in the company’s first 25 years and are excited about
the future ahead.
We look forward to updating you again soon.
FY25 ANNUAL REPORT APA GROUP 3
Adam Watson
Chief Executive Officer
and Managing Director
Michael Fraser
Chairman
FY25 overview
Our year in numbers
UNDERLYING EBITDA¹
+6.4%
to $2,015m
Underlying EBITDA margin
2
+0.9ppts
to 74.2%
FREE CASH FLOW (FCF)³
+0.9%
to $1,083m
FY25 DPS
4
57.0cps
+1.8%, 1 cps increase
FY26 Underlying EBITDA guidance*
$2,120m - $2,200m
FY26 DPS guidance*
58.0cps
1 cps increase on FY25
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. Reported increase is against FY24. Refer to the Financials.
section of the Operating Financial Review on pages 47-55 for further detail.
2 Underlying EBITDA margin is calculated as Underlying EBITDA as a percentage of total segment revenue (excluding pass-through). Segment revenue excluding
pass-through excludes: pass-through revenue; the impact of hedge accounting discontinuation relating to Wallumbilla Gladstone Pipeline and other interest
income. Pass-through revenue is offset by pass-through expenses within EBITDA. Reported increase is against FY24.
3 Free cash flow is defined as Operating Cash Flow adjusted for strategically significant transformation projects, acquisition, integration and disposal-related
costs, and capital returns from Joint Ventures, less stay-in-business capital expenditure. Stay-in-business capital expenditure comprises operational asset
lifecycle replacement costs and technology lifecycle costs. Reported increase is against FY24. Refer to the Financials section of the Operating Financial Review
on pages 47-55 for further detail.
4 DPS is distribution per security.
*Disclaimer: Underlying EBITDA and distribution guidance are subject to asset performance, macroeconomic factors and regulatory changes. In particular,
Basslink is expected to be traded as an uncontracted market provider during the reporting period and earnings associated with that asset may be subject to
potentially material variability and fluctuations. Guidance is not a predictor or guarantee of future performance and is subject to uncertainties and risks.
4 APA GROUP FY25 ANNUAL REPORT
TRIFR
2.4
Safety outcomes supported by strong
performance on leading indicators
SAFETY PERFORMANCE
8.8%
Increase in HSEH interactions by our leaders with
5,333 in FY25, up from 4,900 in FY24
EMPLOYEE EXPERIENCE
70%
Strong engagement in FY25, reflecting our
people's confidence in our future
FY25 EMISSIONS REDUCTION
1
6.5% gross
13.3% net
REFLECT RECONCILIATION ACTION PLAN (RAP)
100% of commitments
delivered under APA’s Reflect RAP and developed
APA’s Innovate RAP
FY25 GROWTH CAPEX
2
$655M
Investment in Port Hedland Solar and Battery
Energy Storage System project, Kurri Kurri lateral
pipeline, East Coast Gas Grid expansion and
acquisition of Atlas to Reedy Creek Pipeline
1 Refers to a gross emissions reduction and a net emissions reduction (including offsets) relative to our FY21 base year.
2 The capital expenditure shown on this page represents payments for property, plant, equipment and intangibles as disclosed in the cash flow statement, and
excludes accruals brought forward from the prior period and carried forward to the next period.
FY25 ANNUAL REPORT APA GROUP 5
Financial results summary
The table below provides a summary of the results for FY25. Further details are provided in subsequent sections to
explain financial movements
1.
Financial Results
30 June 2025
30 June 2024
Changes
$m
$m
%²
Revenue
3,204
3,064
4.6 %
Total revenue excluding pass-through
3
2,713
2,591
4.7 %
Segment revenue excluding pass-through
4
2,716
2,582
5.2 %
Underlying EBITDA
5
2,015
1,893
6.4 %
Total reported EBITDA
6
1,894
1,736
9.1 %
Statutory profit after tax including significant items
129
998
(87.1) %
Profit after tax excluding significant items
129
119
8.4 %
Free cash flow
7
1,083
1,073
0.9 %
Financial position
Total assets
19,937
19,563
1.9 %
Total drawn debt
13,350
12,893
3.5 %
Total equity
2,668
3,248
(17.9) %
Financial ratios
Free cash flow per security (cents)
83.0
83.6
(0.7) %
Earnings per security (cents) including significant items⁸
9.9
78.9
(87.5) %
Earnings per security (cents) excluding significant items⁸
9.9
9.4
5.3 %
Distribution per security (cents)
57.0
56.0
1.8 %
Distribution payout ratio (%)
9
68.7
67.0
2.5 %
FFO/Net Debt (%)¹⁰
10.4
10.1
3.0 %
FFO/Interest (times)¹⁰
2.9x
3.2x
(9.4) %
1
Refer to the Financials within the Performance section (pages 47 to 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 excluding pass-through excludes: pass-through revenue; the impact of hedge accounting discontinuation relating to Wallumbilla
Gladstone Pipeline 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 defined as Operating Cash Flow adjusted for strategically significant transformation projects, acquisition, integration and disposal-related
costs, and capital returns from Joint Ventures, less stay-in-business capital expenditure. Stay-in-business capital expenditure comprises operational asset
lifecycle replacement costs and technology lifecycle costs.
8 Earnings per security is calculated using the weighted average number of securities on issue of 1,295 million (FY24: 1,265 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.
6 APA GROUP FY25 ANNUAL REPORT
FY25 ANNUAL REPORT APA GROUP 7
Image: Kurri Kurri Lateral Pipeline (construction phase), NSW
Our 25 year journey
For the past 25 years, APA has been at the heart of Australia’s energy story, connecting
communities, powering industries and securing the nation’s energy future. From day one,
we have taken care of our people, communities and pipelines, always putting safety first.
Throughout our history, we’ve partnered with our customers to find innovative ways to meet
their needs and deliver reliable, affordable and sustainable energy.
While our history as APA started in June 2000 with our listing on the Australia Stock Exchange,
the roots and heritage of our organisation, including our assets, go back much further.
8 APA GROUP FY25 ANNUAL REPORT
Early beginnings
Before starting life as APA, our foundational pipelines
and our first employees were part of AGL, Australia’s
second-oldest company, famous for lighting Sydney’s
first streetlamp in 1841.
In 2000, the Australian energy market was changing
quickly and AGL made the decision to separate its gas
transmission assets. As a result, a new company, APA
was created.
This allowed us to specialise in our essential role as an
energy infrastructure provider and to develop the gas
infrastructure needed to deliver energy to the whole
country.
Proudly Australian, with a clear vision to run and grow
the business, we set about maximising opportunities.
From a starting position of owning and operating 7,000
kilometres of gas pipelines out of a small office in
Sydney, we have grown into Australia’s largest gas
pipeline operator and the largest listed energy
infrastructure owner on the ASX.
We’ve more than doubled our pipeline assets, now
owning and operating more than 15,000 kilometres of
natural gas pipelines across Australia. From our original
team of six, we’ve grown significantly and now have our
people working with customers and local communities
in every state and territory.
We’ve also diversified our assets to play a broader role
in the energy sector, owning and operating assets
across gas transmission and storage including
associated infrastructure, power generation (gas and
renewable), electricity transmission and battery
storage.
Partnering with customers and
communities
At APA, we’re more than just the infrastructure we own
and operate. Our customers and the communities we
work with are at the heart of everything we do.
Many of our customers have been with us from the
beginning, including household names across
resources, industrial, government-owned corporations
and energy sectors. Since our early days, we’ve worked
with them to find innovative solutions and support
them to achieve their operational and sustainability
goals, lowering emissions and costs, while maintaining
their efficient power supply.
Our relationships with First Nations peoples and local
communities across the country are strengthened
through ongoing engagement. In 2023, we introduced
our first Reconciliation Action Plan to begin and start to
formalise our Reconciliation commitments.
We also have established partnerships with local
communities and organisations, including the Clontarf
Foundation, Uniting, Stars Foundation, The Fred Hollows
Foundation and Rural Aid. We work closely with these
partners to promote wellbeing, economic prosperity
and sustainability for the communities we operate in,
many of which our people call home.
Looking to the future
As Australia’s energy infrastructure partner, we’re
working to ensure our schools, hospitals and homes
always have power. We recognise the essential role
natural gas plays, and will continue to play, in
supporting renewable energy.
Gas is integral to powering Australian industries,
making the bricks that form our homes, and the
fertilisers needed to grow our food. Our job is to secure
that critical supply and ensure energy remains reliable,
affordable and lower emissions.
For everyone.
FY25 ANNUAL REPORT APA GROUP 9
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.
PURPOSE
Why we exist
Securing Australia’s
energy future
STRATEGY
What we do
To be the partner of choice
in delivering infrastructure
solutions for the energy
transition
10 APA GROUP FY25 ANNUAL REPORT
Image : Dandenong LNG Storage Facility, VIC
As Australia’s energy infrastructure partner,
transporting almost half of the nation’s
domestic gas supply, we own and operate
assets across gas transmission and storage
(including associated infrastructure),
electricity generation (gas and renewables)
and transmission and battery energy
storage systems.
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.
Consistent with our strategy to deliver infrastructure
solutions for Australia’s energy transition, our diverse
portfolio delivers energy to customers in every Australian
state and territory. We actively support the energy
transition by partnering with our customers on reliable,
affordable and lower emission solutions that help achieve
their decarbonisation ambitions.
Our 15,000 km of natural gas pipelines connect sources
of supply and markets across mainland Australia. We
operate and maintain networks connecting 1.5 million
Australian homes and businesses to the benefits of natural
gas. We also own or have interests in gas storage and
884 MW of gas-fired generation assets.
We operate and have interests in 773 MW of renewable
energy generation and battery storage infrastructure
making us one of the largest renewable electricity
suppliers in Australia. Our high-voltage electricity
transmission assets connect Victoria with South Australia,
New South Wales with Queensland and Tasmania with
Victoria.
APA has the scale and capability to be the leading
provider of integrated energy infrastructure solutions for
the remote regions of Australia. We support our customers’
energy transition and decarbonisation efforts through our
ability to develop and operate energy solutions spanning
gas transmission and storage including associated
infrastructure, electricity generation (gas and renewables)
and transmission.
At the same time, we're also working on decarbonising our
own operations and we're committed to achieving net
zero operational emissions by 2050.
Together, more than ever, we're securing Australia's
energy future.
Our diverse energy infrastructure portfolio
Gas infrastructure
Contracted power generation
Electricity transmission
Transmission
>15,000 km transmission
pipelines
Renewable energy
342 MW Wind
356 MW Solar
75 MW BESS
>800 km high-voltage
electricity transmission
Storage
12,000 tonnes LNG
18 PJ gas
Gas fired
884 MW
including 290 km
deep-sea cable
Distribution
>29,500 km gas mains
and pipelines
>1.5 million gas
customers
FY25 ANNUAL REPORT APA GROUP 11
Together, we're securing
Australia's energy future
Our behaviours
Our behaviours align with 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.
COURAGEOUS
We are honest
and transparent,
we learn from our
mistakes and we
challenge the
status quo.
ACCOUNTABLE
We spend time
on what matters,
we do what we say
and deliver world-
class solutions.
NIMBLE
We are curious,
adaptive and
future-focused.
COLLABORATIVE
We are inclusive,
work together
and respect and
listen to our
stakeholders.
IMPACTFUL
We create
positive legacies
and work safely,
for our customers,
communities, our
people and the
environment.
ABOUT APA (CONTINUED)
12 APA GROUP FY25 ANNUAL REPORT
Image : Wallumbilla Gas Hub, Qld
APA portfolio of assets and investments
FY25 ANNUAL REPORT APA GROUP 13
How we create value
APA's value creation model shows how APA creates value for its people, customers, communities, investors and other
stakeholders. It identifies APA's financial and non-financial resources and describes how the company creates value
through its business model, and the metrics used to track and measure this value. It also recognises the influence of
APA's external and internal environment.
14 APA GROUP FY25 ANNUAL REPORT
FY25 ANNUAL REPORT APA GROUP 15
Value driver key performance metrics
The following metrics are aligned with our value creation model. For more information on each key performance metric,
refer to our performance section.
FY25
FY24
Change
People
A high-performing organisation where our people feel a sense of belonging, and are energised,
engaged and capable to deliver on our strategy. Safe work practices are prioritised.
Employee experience
% score
70
70
— %
Overall gender representation
% female
31.72
32.40
(2.1) %
Actual serious harm incidents
count
1
1
— %
Infrastructure and
business intelligence
A diverse portfolio of safe, resilient and reliable assets that enable us, together with our customers,
communities, government and other stakeholders, to secure Australia’s energy future.
Scheduled gas transmission
nominations
% delivered
99.99
99.90
— %
High Voltage Direct Current
(HVDC) availability
%
92.42
90.70
2 %
Remote grid customer availability
%
99.34
99.6
— %
Stay-in-business capex
$ m
218
195
12 %
Cyber security training
% complete
95.56
N/A
N/A
Customer
Effective and trusted partnerships with our customers and suppliers, allowing our customers to
create value from our services.
Customer Experience Score
score
6.4
7.1
(10) %
Growth capex
$ m
655
833
(21) %
Small business payment terms
% met
88.6
93.00
(5) %
Environment
Decarbonise our operations, support our customers' decarbonisation plans and minimise our
impact on the environment.
Total Scope 1 and Scope 2 - Gas
infrastructure emissions
(adjusted) (net)
t CO2-e
479,710
498,327
(3.7) %
Power generation emissions
intensity (gross)
t CO2-e / MWh
0.34
0.34
— %
Environmental notices received
(warning and penalty)
count
0
4
(100) %
Social licence
Enhancing local communities through enduring, mutual partnerships with First Nations Peoples,
landholders, government and communities.
RepTrak reputation score
score
73.7
72.8
1.24 %
Reconciliation Action Plan
commitments
delivered (out of 72)
72
36
100 %
Total social investment
$
1,037,714
1,329,836
(22) %
Financials
Sustainable financial returns for our investors via distributions and long-term growth from the
reinvestment of free cash flow in value creation opportunities.
Underlying EBITDA
$ m
2,015
1,893
6.4 %
Free cash flow
$ m
1,083
1,073
0.9 %
Distribution per security
cps
57.0
56.0
1.8 %
ABOUT APA (CONTINUED)
16 APA GROUP FY25 ANNUAL REPORT
External environment
We are committed to working with customers,
communities, investors and governments to deliver
reliable, affordable and lower emissions energy.
Industry trends
The role of gas in the Australian energy sector is now
more clearly understood and supported by state and
federal governments. The Federal Government's Future
Gas Strategy recognises the essential role gas plays in
ensuring secure and affordable supply for both industry
and households.
The Federal Government's recent announcement of a Gas
Market Review will build on this strategy. The Minister for
Natural Resources the Hon. Madeleine King said, 'The Gas
Market Review aligns with the implementation of the
Future Gas Strategy and underpins the government’s
commitment to ensure householders and businesses
can continue to have access to adequate supplies of
affordable energy.'
Energy security is a major focus for governments as lower-
emission variable renewable electricity enters the system
and ageing coal power stations are retired.
As a result, demand for gas remains strong, as confirmed
by the Australian Energy Market Operator (AEMO)
1, and our
infrastructure is critical to supplying Australian industry
and supporting new gas-powered generation that will
be essential in maintaining energy reliability through
the transition.
This strong and sustained demand underpins APA's
confidence in our existing portfolio and growth pipeline.
We remain committed to working with federal and state
governments to reduce regulatory barriers and ensure
continued investment in gas supply to support the
energy transition.
Alongside energy security, energy affordability is an
increasing concern as the cost of new investment is
passed on to customers. Governments are looking to
adjust policy settings so as to meet emissions reduction
targets at the least cost to customers.
In November 2024, the Australian Government announced
a review of the National Electricity Market (NEM) wholesale
market settings (NEM Review) by an independent expert
panel, led by Associate Professor Tim Nelson.
The NEM Review targets the period when the Capacity
Investment Scheme (CIS) concludes in 2027 and will
recommend the wholesale market settings to promote
investment in firmed, dispatchable generation and
storage capacity. The final report, including actionable
recommendations, is expected in late 2025.
In late 2024, the South Australian Government
commenced consultation on the design of a proposed
Firm Energy Reliability Mechanism (FERM). The FERM
provides for eligible long-duration firm capacity to receive
underwriting support and alleviate the revenue
uncertainty associated with these assets.
Government concerns about the reliability and
affordability of energy mean that policy reform
has continued:
•
Market reform: The NEM Review and SA FERM are two
examples of government-led initiatives aimed at
providing greater certainty for long-term investment
in energy generation projects.
•
Security of supply: The Australian Government
continues to look for ways to alleviate the risk of
potential domestic gas supply shortfalls. It is
progressing a review of gas market frameworks,
including the Australian Domestic Gas Security
Mechanism (ADGSM). In September 2024, the Western
Australian Government implemented an 80% domestic
gas reservation for onshore gas projects on the existing
pipeline network until 31 December 2030.
•
Gas reliability frameworks: The Australian Energy
Market Commission (AEMC) has also commenced
consultation on a series of rule changes that aim to
facilitate timely market-led responses to future gas
infrastructure needs and reliability threats. On 20 March
2025, the AEMC initiated consultation on the reliability
standards and associated settings rule change and
the notice of closure for gas infrastructure rule change.
Impact on value creation
Together, these market reforms should support the
important role of gas and GPG in the energy transition.
Both the NEM Review and FERM are looking at ways to
support investment in firm, long-duration generation,
including GPG. Both schemes should support the entry of
new GPG capacity necessary to support renewables
during the energy transition, requiring ongoing investment
in gas pipeline and storage infrastructure.
Queensland has unlocked new acreage, Victoria is
supporting the development of new gas fields, the
Northern Territory is working to unlock the Beetaloo Basin,
and Western Australia is implementing recommendations
resulting from the state government’s review of the
Domestic Gas Policy that were handed down last year.
Demand for gas remains strong, as confirmed by AEMO in
the most recent Gas Statement of Opportunities (GSOO),
and our infrastructure is critical to supplying Australian
industry, households and supporting new gas-powered
generation that is essential to maintain energy reliability.
FY25 ANNUAL REPORT APA GROUP 17
1 AEMO, Gas Statement of Opportunities, March 2025, page 6.
Regulatory matters
Gas pipelines in the east coast are regulated under the
National Gas Law (NGL) and National Gas Rules (NGR)
by the AER. Western Australian pipelines are regulated
under the NGL (WA) and the NGR (WA) by the Economic
Regulation Authority of Western Australia (ERA).
South West Queensland Pipeline
In February 2024, the AER commenced a form of regulation
review on the APA-owned and operated South West
Queensland Pipeline (SWQP). On 6 December 2024, APA
welcomed the AER's final decision that the SWQP will not
be subject to full price regulation and that the existing light
regulation framework will remain in place. This decision
helps build confidence to continue making the necessary
investment in our East Coast Gas Grid to help meet gas
demand on the east coast and support energy security
for our customers and energy consumers.
Basslink regulatory conversion application
In early 2025, APA lodged a submission to the AER's draft
decision outlining the substantial benefit to consumers of
regulating Basslink. The AER announced its final decision
to convert Basslink into a regulated Transmission Network
Service Provider on 26 June 2025. A regulated Basslink will
provide greater certainty for consumers, ensuring prices
will remain stable and not subject to daily movements in
the electricity spot market.
APA will trade Basslink on the electricity spot market from
1 July 2025 and expects to operate Basslink as a regulated
asset from July 2026. Operation as a regulated asset
remains subject to the AER’s determination of an
acceptable Regulated Asset Base (RAB). In the event the
outcome of the RAB determination process does not
deliver a reasonable return for APA securityholders, APA
retains the option to trade the asset on the spot market
or contract with a third party who would trade the asset.
Reform of Pilbara Network Rules and Pilbara Network
Access Code
In February 2025, Energy Policy WA (EPWA) published
two consultation papers proposing changes to the
Pilbara Network Access Code (PNAC) and Pilbara Network
Rules (PNR), which apply to APA's Port Hedland electricity
transmission network. On 29 April 2025, APA lodged a
submission in response to the consultation papers,
expressing our support for a continuation of the light
regulation framework that exists in the Pilbara, where
bilateral contracting, rather than regulatory
processes, drives investment.
Extension of Dandenong LNG interim measures
On 3 April 2025, the Victorian Energy Minister lodged a rule
change request seeking to amend the NGR to extend the
existing arrangements that make AEMO the 'buyer and
supplier of last resort' in relation to the Dandenong LNG
storage facility. APA supports regulatory arrangements
that will provide the long-term investment signals
necessary to support investment in the liquefaction
facility and greater utilisation of Dandenong LNG.
Other key regulatory processes
During 2024-25, other key regulatory processes relating
to APA assets included:
•
Goldfields Gas Pipeline (GGP): On 18 December 2024,
the ERA published its final decision on Goldfields Gas
Transmission's (GGT) 2025-29 access arrangement
proposal. The final decision included approved total
revenue of $345.8 million, $132 million higher than the
2020-24 period, for the covered section of the pipeline.
•
Directlink Interconnector: On 30 April 2025, the AER
published its final decision on Directlink's 2025-30
revenue proposal. The final decision included approved
total revenue of $127.5 million, $49 million more than the
current period.
•
Amadeus Gas Pipeline: On 1 July 2025, APA submitted its
access arrangement proposal to the AER for the 2026–
31 regulatory period. On 16 May 2025, we published a
draft access arrangement for stakeholder feedback.
•
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 PNAC. New prices and terms and conditions
took effect from 1 July 2024.
ABOUT APA (CONTINUED)
18 APA GROUP FY25 ANNUAL REPORT
Image: Basslink Interconnector, Vic
Energy industry policy developments
In FY25, we continued to engage in national and
jurisdictional policy processes predominantly focused
on energy security and market reforms.
Our submissions covered the following areas:
•
Energy security: APA supports whole-of-system
planning and continues to emphasise the importance
of gas-powered generation and gas storage in
supporting renewables during the energy transition.
•
AEMO powers: APA has engaged in all stages of the
gas reliability reforms. Through our submissions to the
reliability reforms and the extension of Dandenong LNG
interim measures, we have stressed the importance
of regulatory certainty to inform efficient, market-led
investments.
•
Regulatory frameworks: APA engaged in various
initiatives relating to national and jurisdictional
electricity frameworks, including proposed reform
of transmission access frameworks. These included
participating in transmission framework reviews across
state jurisdictions, including Victoria, New South Wales
and Western Australia. APA will continue to participate
in these reviews.
•
Decarbonisation of the economy: APA has contributed
to policy processes relating to emissions reduction,
stressing the important role of GPG in supporting
renewables during the energy transition.
•
Australia’s Sustainable Finance Taxonomy: APA supports
a taxonomy that recognises GPG for firming and
peaking, and gas transmission infrastructure for
blended renewable gases as transition activities
essential for supporting faster renewable integration.
•
Methane measurement and reporting: APA has actively
engaged on reforms to the National Greenhouse and
Energy Reporting Scheme framework, advocating for
enhanced methane measurement methods.
FY25 ANNUAL REPORT APA GROUP 19
Our strategy
At APA, we are focused on delivering
reliable, forward-looking energy solutions
for the resources industry, energy supply
and wholesale markets, government, and
large commercial and industrial customers.
APA's strategy is to be the partner of
choice in delivering infrastructure
solutions for Australia's energy transition
20 APA GROUP FY25 ANNUAL REPORT
Image: Kurri Kurri Lateral Pipeline (construction phase), NSW
Our strategy is to be the partner of choice
in delivering infrastructure solutions for the
energy transition. We focus on creating value
for our customers by offering competitive
and differentiated energy solutions in four
primary asset classes critical to our
customers as they navigate the energy
transition: gas transmission and storage
(including associated infrastructure),
contracted power generation, electricity
transmission, and future energy.
Australia’s energy transition requires an ambitious
and pragmatic approach to deliver reliable, affordable
and lower emissions energy to our customers and
communities. The transition must focus on the
introduction of renewable generation firmed up by a
combination of short-duration and medium-duration
energy storage and generation.
Central to our strategy is the support we provide to our
customers in navigating the transition.
Natural gas is a critical part of the future energy mix,
essential for powering Australian industry. It provides the
firming capacity essential to supporting the expansion of
the renewable energy generation required to replace
retiring coal power stations.
APA's strategy focuses on long-term contracted
infrastructure with inflation-linked revenues. We build and
expand networks of assets, which we operate efficiently,
targeting the highest level of performance and availability
for our customers.
We execute on our strategy by developing, delivering and
operating a portfolio of connected assets, capable of
providing safe, reliable and fit-for-purpose energy
solutions. We deliver value for our customers through our
operational performance, leveraging and strengthening
our existing networks across the east coast and Western
Australian energy markets..
We manage our cost base with discipline, enhancing the
efficiency and effectiveness of our solutions and
allocating our capital to target optimum return for our
securityholders.
We will continue to grow and invest in asset classes that
are critical for our customers as we support them through
the electrification of their operations by: investing and
optimising our portfolio of gas assets to meet the capacity
and storage future needs of our customers, offering
differentiated solutions in power generation, investing in
electricity transmission opportunities that complement
our assets, and exploring how future energy can support
decarbonisation further.
Together with our people, customers, communities and
other stakeholders, we’re committed to securing
Australia’s energy future.
APA’s customer-focused strategy delivers energy solutions that target asset classes that are essential to
Australia’s energy transition and where we have a competitive advantage
FY25 ANNUAL REPORT APA GROUP 21
Our strategy positions APA to capitalise on Australian energy market dynamics
Renewables replacing coal,
with increased gas firming and
battery capacity and new
electricity transmission
infrastructure required
Customer decarbonisation
ambitions, with gas to remain
a critical part of the future
energy mix
Gas supply source shifting
from southern to northern
markets, with new sources
of gas needed. Wide recognition
of the role of gas through and
beyond the transition
Delivering on our strategy
We will achieve our strategy by focusing on our three delivery pillars:
Our People, Operational Excellence and Creating Value.
OUR PEOPLE
Ensuring our people are motivated,
engaged, safe and well
OPERATIONAL EXCELLENCE
Safe, reliable and efficient
operations, and maintaining
a strong social licence
CREATING VALUE
Disciplined operations and
investments to maximise value
for our customers, our communities
and our securityholders
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.
Capital allocation framework
Our capital allocation framework is designed to ensure free cash flow is deployed to generate the greatest return for
securityholders.
Free Cash Flow
(FCF)
Investment
Productivity improvements
Organic growth
Strategic acquisitions
Return to
securityholders
Distributions
Other returns to securityholders
Capital allocation foundations
1. Maintain investment
grade BBB / Baa2 credit
ratings
2. An efficient cost base
and maintenance of
existing assets to
maximise availability
3. Deliver sustainable
distribution growth to
securityholders
1
4. Execute on value-
accretive growth
opportunities with
disciplined investment
hurdles
1 Statements about ongoing distribution growth are not intended as distribution guidance. Any distribution guidance for periods beyond FY26 will be approved
by the APA Board as and when appropriate.
OUR STRATEGY (CONTINUED)
22 APA GROUP FY25 ANNUAL REPORT
Our approach to sustainability
At APA, sustainability is integral to our purpose of securing
Australia's energy future. We recognise that to be
successful, we must deliver sustainable outcomes
for our stakeholders, including our people, customers,
First Nations Peoples, communities and investors.
Sustainability performance is a shared, enterprise-
wide responsibility with an integrated approach
being critical to protecting and creating long-term
business value. Our FY25-27 Sustainability Roadmap is
the mechanism through which an integrated approach
to sustainability is delivered across APA.
The Sustainability Roadmap is structured around APA's
three strategic delivery pillars and underpinned by
annual performance metrics.
Based on a comprehensive double materiality
assessment undertaken in FY24, the Roadmap is centred
on 10 key material topics. These were identified based on
their importance to APA's business performance and
stakeholder priorities, as well as their environmental
and social impact. They form the foundation of our
sustainability priorities and guide our actions to drive
measurable, long-term positive impact.
We continuously monitor the external environment
to assess emerging risks and opportunities, ensuring our
sustainability priorities remain relevant and responsive.
This includes periodically reviewing and, where necessary,
proposing updates to our material topics to reflect
changing stakeholder expectations, regulatory
developments, or market conditions.
The 10 focus areas within the Sustainability Roadmap
articulate our commitments to safety, environmental
stewardship, supply chain resilience, community
engagement, and the development and wellbeing of our
people, forming the core of our sustainability approach.
Our FY25-27 Sustainability Roadmap can be found in the
FY25 Sustainability Data Book with overviews of each
initiative under each value driver in the Performance
section.
Reporting our sustainability performance
In FY25, we embedded our refreshed Sustainability
Roadmap and made progress in implementing the
actions under each strategic pillar as follows:
Our People
At APA, we are committed to providing a safe, respectful
and inclusive workplace. We are focused on ensuring that
our workforce is engaged, motivated, and that their safety,
health and wellbeing are always prioritised.
Health, Safety and Environment and Heritage (HSEH)
interactions are a key way we keep safety front-of-mind
with our workforce. In FY25, we maintained a strong focus
on increasing the number of Critical Control and
Wellbeing interactions to support our serious harm
prevention and wellbeing initiatives. Our leaders achieved
5,333 interactions - surpassing our FY24 total and
reinforcing our commitment to a proactive safety culture.
In FY25, over 99% of all APA employees completed
our Respect@Work training, reflecting our ongoing
commitment to fostering an inclusive and respectful
workplace. In addition, 72.8% of our hiring managers
completed Inclusive Hiring Manager training, helping
to embed inclusive practices into our recruitment
processes.
We also launched APA’s first Supplier Code of Conduct and
evolved our Social Procurement Framework into a more
comprehensive Sustainable Procurement Framework.
This broader framework better captures key sustainability
elements, including biodiversity, and underscores our
commitment to more ethical and sustainable
procurement practices.
FY25 ANNUAL REPORT APA GROUP 23
Image: Amadeus Gas Pipeline, NT
Operational Excellence
Delivering operational excellence goes to the heart of
our social licence and it underpins our focus on reliably
delivering energy to our customers and communities.
In FY25, we continued to make progress against our
Climate Transition Plan goals and targets. Progress is
outlined on page 74.
We developed new Scope 3 emissions goals, which have
been incorporated into our refreshed 2025 Climate
Transition Plan.
To continue to improve our approach to managing
nature-based risks, we implemented a Biodiversity
Protocol across APA and updated associated controls and
requirements. We continue to actively monitor the
development of the Taskforce on Nature-related Financial
Disclosures (TNFD).
Supporting our customers in meeting their energy
reliability and affordability goals is central to our Purpose.
In FY25, we continued to deliver strong operational
performance, with 99.99% of firm gas nominations
accepted across APA’s gas transmission assets (excluding
Victoria) and 99.34% availability across our remote grid
infrastructure. These results reflect our continued focus on
reliable energy delivery and system resilience.
Creating Value
In FY25, we continued to actively support customers
on their future energy decarbonisation pathways, working
closely with Santos, Wesfarmers Chemicals, Energy and
Fertilisers, and Mitsui to help advance their transition goals.
Recognising our important role in Australia's energy
transition, we defined our position on a Just Transition -
reinforcing the importance of ensuring that the shift to a
lower carbon economy is fair, inclusive and considers both
the impacts and opportunities for affected communities.
We remain committed to building respectful and valued
relationships with First Nations Peoples and local
communities. In FY25, we engaged with 94% landholders
through our Landholder Contact Program, successfully
delivered all 72 commitments of our Reflect Reconciliation
Action Plan, and spent $6,771,505 with First Nations
businesses, an increase of 59% from FY24.
We also worked across the Mount Isa and Pilbara regions
to implement a Community and Social Performance (CSP)
system. This initiative is designed to deliver standardised
CSP processes aiming to uplift local practices, and drive
consistency in community engagement and social
performance.
For more information relating to our sustainability
performance, see our FY25 Sustainability Data Book.
Sustainability Highlights
OUR PEOPLE
OPERATIONAL EXCELLENCE
CREATING VALUE
5,333 HSEH interactions delivered
Continued progress against our
CTP
Innovate RAP developed and
endorsed
100% of divisional psychosocial risk
assessments completed
Scope 3 goals included in 2025
CTP
2 regions implementing CSP
systems
70% of our people reported a
favourable employee experience
6.4 / 10 customer engagement
score
Disclosing enhanced methane
measurement on three assets
Supplier Code of Conduct
published
99.99% delivery of scheduled gas
nominations (excluding Victoria)
$6.77m First Nations procurement
spend
OUR STRATEGY (CONTINUED)
24 APA GROUP FY25 ANNUAL REPORT
Sustainability governance and reporting
frameworks
The global shift towards mandatory sustainability-related
reporting frameworks continues and signals a move
towards greater consistency, comparability and
accountability in ESG disclosures. We are closely
monitoring these developments, and actively preparing
for compliance with the forthcoming Australian
Accounting Standards Board S2 Climate-related
Disclosures (AASB S2).
We have been proactively strengthening our reporting
processes to ensure robust, transparent and consistent
disclosure of climate-related and broader sustainability
information.
Our approach
The APA Board's Safety and Sustainability Committee
has oversight of our sustainability approach and
performance. The Committee is supported by the
Executive Sustainability Management Committee and
both committees regularly review the performance and
progress against the Sustainability Roadmap and Climate
Transition Plan.
During FY25, the Safety and Sustainability Committee
oversaw progress against sustainability areas outlined in
our Roadmap.
The Committee discussed topics, including progress
against the Sustainability Roadmap, the development of
our new 2025 Climate Transition Plan, senior leadership
representation of women and the development of
our Innovate RAP.
Reporting standards and frameworks
As part of our ongoing commitment to responsible
business practices and transparency, there are a
number of leading voluntary global sustainability
frameworks, standards, benchmarks and initiatives
that we seek to align with.
We continue to report against the Global Reporting
Initiatives (GRI) Standards, the Sustainability Accounting
Standards Board (SASB), the recommendations of the
Taskforce on Climate-related Financial Disclosures (TCFD),
the United Nations Global Compact (UNGC), and support
the United Nations Sustainable Development Goals
(UN SDGs).
By integrating these frameworks and principles into
our operations and reporting, we aim to ensure that
our sustainability performance is measured against
internationally recognised best practices. This alignment
continues to support informed decision-making, enhance
stakeholder trust, and reinforces our long-term
commitment to sustainable value creation.
Our GRI Index and SASB Index are available in the FY25
Sustainability Data Book.
Our Climate Transition Plan
APA’s Climate Transition Plan commitments are aligned
and integrated with our business strategy. For more
information, see our Climate Report on page 73. This year,
we are also releasing our new 2025 Climate Transition
Plan.
FY25 ANNUAL REPORT APA GROUP 25
Image: Port Hedland Solar Farm, WA
Performance
The following sections highlight
our performance across our
six value drivers.
People
Infrastructure
and business
intelligence
Customers
and partners
Environment
Social licence
Financials
26 APA GROUP FY25 ANNUAL REPORT
Image: Port Hedland Solar Farm, WA
People
Starting as a team of six when first listed in 2000, we’ve grown significantly over the past 25 years
and now our people work with customers and local communities in every state and territory.
APA is a high-performing, customer-focused organisation,
committed to the safety and care or our people. We drive
a high-performance culture recognising the important
role leadership and culture play in enabling our people –
and our organisation – to perform at their best.
In FY25, a priority was embedding our new purpose and
customer-focused strategy, alongside driving the cultural
shifts necessary to enable APA to execute against
our strategy.
We lifted our employees' understanding of our customers
and we ensured our people had clarity on our purpose,
strategy, culture and behaviours (i.e. the What, Why and
How). This was supported by investment in leadership
development, refreshing our approach to performance
management and improving our systems and processes.
Value driver metrics
Overall gender representation
(% women)
31.72
Employee Experience
70%
Actual serious harm incidents
1
Board focus areas
•
Oversaw APA's safety governance, culture and
engagement, including the work to implement
the new purpose and drive the required culture
shifts.
•
Undertook board renewal with the appointment
of three new Non-Executive Directors.
•
Supported the appointment of two new Group
Executives, strengthening the Executive
Leadership Team.
Aligned FY25-27 Sustainability Roadmap commitments
Where practical and to support integrated reporting, we have aligned our Sustainability Roadmap commitments with
our value drivers. More detail on our Sustainability Roadmap progress can be found in the FY25 Sustainability Data Book.
Commitment
Status
FY25 progress
Work health, safety and wellbeing
Prepare and deliver a process safety
framework and roadmap
●
The process safety roadmap is approved, and a delivery plan is currently being
developed. The process safety framework is in the process of being developed
for future approval.
Elevate the understanding and
management of psychosocial risk
●
100% of Divisional Psychosocial Risk Assessments have been completed and
action plans approved by leadership teams.
Uplift controls to improve contractor
management
●
In FY25, the contractor partnering protocol was developed and endorsed.
Implementation of the protocol is scheduled to take place in FY26.
Deliver the HSEH frontline leadership
Program (LEAD) nationally
●
In FY25, 120 frontline leaders completed the LEAD program.
Continued delivery of our five-year HSEH
strategy
●
All Health, Safety, Environment and Heritage (HSEH) initiatives have been
delivered in accordance with the HSEH strategy.
Employee practices
Continued delivery of our Culture and
Engagement Action Plan
●
In the 2025 Engagement Survey, 70% of employees reported a favourable
Employee Experience. This was the same result as in the 2024 survey.
Develop 2030 Inclusion and Diversity
Strategy
●
The 2030 Inclusion and Diversity Strategy was developed during the year and
approved by the Board in June 2025. For more information on specific metrics,
see our Sustainability Data Book.
Improving inclusion
●
Our Inclusion Index in our Engagement Survey - which assesses equity,
authenticity, and belonging – rose to 75%, a four-point increase from FY24. For
more information on specific metrics – see our Sustainability Data Book.
Status: ● Complete ● In progress ● Not yet started
FY25 ANNUAL REPORT APA GROUP 27
Our culture
Our annual Employee Engagement Survey is a
cornerstone for understanding our organisational
culture, employee engagement, inclusion and
wellbeing. These insights inform strategic initiatives
that enhance the employee experience and foster
continuous improvement.
In FY25, APA adopted the Employee Experience metric
as our primary engagement measure, enabling external
benchmarking and deeper insights. Our Employee
Experience score was 70%, while our Inclusion Index,
which assesses equity, authenticity and belonging,
rose to 75%, a four-point increase from FY24.
Notably, our Safety and Psychological Safety score
increased by six points to 86%, reflecting the positive
impact of our ongoing efforts to create a workplace
where the safety and care of our people is a priority.
Employee experience
1
70%
Employee Experience score
77%
would recommend APA to
people they know as a great
place to work
71%
feel like they belong at APA
To further strengthen our understanding of workforce
diversity, we continue to offer employees the opportunity
to anonymously self-report key demographic information.
This initiative supports our commitment to building
a workplace where all individuals feel valued
and empowered.
People demographics
1
70%
of our people are caregivers
4%
identify as LGBTQIA+
Inclusion and diversity
A key component of APA’s culture is the Inclusion and
Diversity Strategy (2020–2025). Over the past five years,
we have made meaningful progress across all key focus
areas: gender equity, flexibility, inclusive culture and
inclusive leadership.
Gender equity
•
Setting clear leadership accountability with gender
representation targets embedded in senior leader
scorecards. Progress against these targets is included
on page 29.
•
Championing gender equity through long-standing
partnerships with organisations such as the
Champions of Change Coalition, Chief Executive
Women, Work180, and Women in Engineering.
•
Ensuring inclusive policies and practices, including
gender-neutral parental leave, flexible work
arrangements and gender-balanced recruitment,
support diverse workforce needs.
•
Gender Pay Equity, including regular pay equity audits
and transparent remuneration processes, underpins
our commitment to closing the gender pay gap.
•
Increased enterprise messaging embedding our
commitment to gender equity in CEO and senior
leader messaging.
•
Externally recognised commitment to gender equity,
including being named in Work180’s Top 101 Workplaces
for Women for two consecutive years and receiving
the 2024 APGA Diversity and Inclusion Award.
Flexibility
•
Flexibility is core to our employee value proposition.
In our recent engagement surveys, employees
consistently rate APA above external benchmarks
for having the flexibility they need to meet both work
and personal needs.
•
Flexible Work Practices, such as our hybrid model,
supports office-based employees with a balance of
remote and in-office work, while we continue to explore
flexible options for frontline teams.
•
Gender-Neutral Parental Leave enables either parent,
regardless of carer status, to access 18 weeks paid
parental leave within two years of a child’s arrival.
This inclusive policy has increased uptake by men
and encouraged more employees to identify as carers.
PEOPLE (CONTINUED)
28 APA GROUP FY25 ANNUAL REPORT
1 Data derived from anonymous self-identification in our Annual Engagement survey 2025.
2020-2025
Target
FY20
FY21
FY22
FY23
FY24
Actual
30 June 2025
Total employee representation of women
40%
30%
29%
30%
32%
32%
32%
Senior leader representation of women
30%
20%
27%
30%
31%
39%
39%
Talent pipeline representation of women
50%
41%
42%
40%
49%
46%
57%
Extended leadership representation of women
40%
n/a
35%
35%
36%
38%
37%
Inclusive culture
•
Early talent programs have been a key enabler of early
career and development pathways with gender-
balanced graduate, internship and apprenticeship
programs.
•
To ensure we are aligned to legislation such as
Respect@Work we have strengthened anti-
discrimination policies and education.
•
We provide equitable access to career development,
promotions, and leadership pathways.
•
We have established network groups for Women,
Young Professionals (YAPA), LGBTQIA+ employees
(Empowered to be Me) and a First Nations employee
network (First Nations Employee Network Group).
Inclusive leadership
•
Building inclusive leadership capability has been a
core component of APA’s leadership development
since 2021. Throughout the 2020-2025 strategy, we
continued to invest in building the capabilities
required to lead an inclusive and respectful culture.
•
Comprehensive training programs were delivered
across APA, covering Inclusive Leadership, Inclusive
Hiring, Unconscious Bias, Respect@Work and First
Nations Cultural Competency. Tailored sessions were
also provided for specific teams and operational sites.
•
Our Reflect Reconciliation Action Plan further
strengthened cultural awareness through cultural
training for leaders at all levels and the continuation of
the First Nation's Network Group, which was established
in March 2023.
2030 Inclusion and Diversity Strategy
In FY26, APA will commence the implementation of our
2030 Inclusion and Diversity Strategy, which builds on the
strong foundations of the past five years. The strategy
prioritises three specific areas to increase our Inclusion
and Diversity maturity that will maximise business
outcomes and contribute to reinforcing our sustained
business growth and competitive advantage.
The areas of focus are:
1
Accelerating our inclusive culture
2 Building a workplace reflective of our community
3 Investing in inclusive leadership
More detail on this evolution of our Inclusion and Diversity
Strategy will be shared in next year’s Annual Report.
Freedom of association and collective bargaining
We support the right of all employees to choose whether
to be a union member.
In FY25, 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.
FY25 ANNUAL REPORT APA GROUP 29
Board gender diversity
(Non-Executive Directors + CEO)
Total employee gender diversity
68
32
Men
Women
63
38
Men
Women
CASE STUDY
'For the Things That Matter'
safety initiative
This year, we launched our 'For the Things That
Matter' initiative, inviting our people to reflect on
what personally motivates them to prioritise
safety and care - whether family, community or
wellbeing - and share those reflections through
stories, photos and video, to foster a culture of
safety and care.
Our 'shared why' for people to 'anchor' safety and
care across the workforce helps our people
better understand each other and deepens
personal connections, with the understanding
that If you know what matters to an individual,
you are more likely to care for the people that
you're working with.
Built using a 'by us, for us' approach, the initiative
was shaped through broad consultation and
designed to be flexible and continually
reinforced. The Executive Leadership Team (ELT)
played a central role in launching and modelling
the initiative, sharing personal reflections and
leading conversations across the business,
creating a cascading effect with senior leaders
sharing their personal stories, followed by team
members.
We’ve now integrated these shares into daily
processes like meetings, inductions and safety
moments and are seeing our people come
together with an increased level of trust and
deeper connection at all levels of the
organisation.
Safety and care of our people
APA is committed to safeguarding the physical and
psychosocial wellbeing of our employees and contractors
by identifying and managing workplace risks and ensuring
that our people go home unharmed both physically and
mentally.
Maintaining a strong culture of safety and care
Our comprehensive Health, Safety, Environment and
Heritage (HSEH) Strategy promotes visible safety
leadership and awareness of key risk areas through
various initiatives.
As part of this, in FY25 we:
•
launched our 'For the Things That Matter' program,
encouraging our people to share their reasons for
prioritising safety and care, to create a unified identity
and a 'shared why' to focus our people on safety and
care
•
refreshed our Fatal Risk Driving Protocol to incorporate
updated Chain of Responsibility guidance and
enhanced trailer and 4WD safety requirements,
reflecting lessons from our FY24 Driving Awareness
Campaign
•
revised our Drug and Alcohol Protocol following
extensive consultation to ensure clarification and
consistency of process and application
•
finalised the implementation of our Psychosocial Risk
Protocol and completed risk assessments across all
divisions to identify psychosocial hazards, assessed
risks and established controls and actions to address
them
•
finalised the revised Contractor Partnering Protocol to
ensure we continue to improve contractor safety
performance
•
implemented a process safety roadmap, a multi-year
initiative to enhance APA’s process safety maturity. This
roadmap aims to embed a consistent, accountable
and proactive safety culture across APA by
strengthening leadership, improving the visibility of
process safety risks, and integrating process safety into
core business systems.
Holistic wellbeing
We recognise the importance of offering education and
resources to help our people manage their wellbeing
both at work and home.
Our psychosocial risk assessment and management
process continues to mature, and we continue to
provide access to discounted health fund options
and Fitness Passport to help our people improve their
overall wellbeing.
Underlying this, our holistic employee assistance program,
Sonder, provides access to medical advice, safety support
and mental health care for our people and their families.
PEOPLE (CONTINUED)
30 APA GROUP FY25 ANNUAL REPORT
Measuring health and safety performance
We continuously measure health and safety performance
to ensure a resilient, compliant and high-performing
workplace.
In FY25, we received zero regulatory (safety) penalty
infringement notices and zero regulatory (safety)
improvement notices.
We did not have any fatalities; however, we recorded
one serious-harm incident.
•
Our Potential Serious Harm Incident Frequency Rate
(PSHIFR) for FY25 was 4.60. This is an increase of 12%
from the prior year at 4.1.
•
Our combined employee and contractor TRIFR was
2.4 recordable injuries per million hours worked. The
number of recordable injuries remains at 19, the same
as FY24; however, the reduction in hours worked in FY25
has meant the overall TRFIR increased by 11% from FY24.
•
In FY25, our leaders completed 5,333 HSEH interactions,
an increase of 8.84% from FY24, reflecting our proactive
commitment to safety leadership and fostering a
culture of open, meaningful engagement.
Assurance
Our Line 2 Assurance Schedule covered the areas of risk
management, job risk assessment, fatigue management,
energy isolation and electrical safety with a total of 2,392
controls audited.
97%
Compliance rating
across all assessed areas
We also engaged Deloitte in FY25 to undertake limited
assurance of selected key performance indicators. These
are included in the Safety Performance section of our
FY25 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 commencing on page 237 of this report.
Capability of our people
Development of our people
At APA, our performance and development approach
is centred around a cycle of setting clear goals and
expectations, combined with quarterly check-ins to foster
impactful conversations and two-way feedback. Key goals
are cascaded to enable strategic alignment. In FY25,
we implemented Workday, our enterprise resource
planning platform, improving our process for capturing
and tracking progress to better identify and recognise
those of our people who deliver high performance.
We are committed to fostering leadership and talent
development within our organisation. These efforts
contribute to individual growth and also help drive a high-
performance culture at APA.
By investing in our employees' development, we not
only empower them to reach their full potential, but also
create an environment that attracts top talent and retains
skilled professionals. This strategic focus on training and
development equips our workforce with the necessary
skills and knowledge needed to adapt to future
challenges, fostering innovation and excellence
across APA.
Leadership and talent
Our Leadership and Talent Development Strategy is fit for
purpose across the roles and levels in our organisation.
In FY25, we continued the partnership with INSEAD to deliver
the strategic leadership capability to enable our senior
leaders to deliver on our purpose, strategy and culture.
Also in FY25, we expanded the targeted population of our
LEAD Program. This program was initially designed for
frontline leaders, with the first cohort of 116 frontline leaders
completing the nine-month program in December 2024.
Following positive feedback and interest, we extended the
LEAD program to all people leaders across the field and
corporate areas of our business to ensure consistency in
how we lead our people and Health, Safety, Environment
and Heritage. In March 2025, a further 167 leaders
commenced the program.
In addition to these two core leadership development
programs, in FY25, we delivered programs that are key
culture and capability enablers, and our talent program
Ignite for 32 emerging leaders.
Commitment to continuous learning
In addition to leadership development, we also
provide our people with access to a comprehensive
online learning library and to external professional
development opportunities aligned with their
development goals. In FY25, a total of 57,989 hours
of training were completed by our employees, with
an average of 20 hours per team member.
As part of our commitment, this year, we’ve also
implemented a refreshed Learning Management System
(LMS) using Workday, which delivers enhanced safety
compliance, streamlined training management, improved
data accuracy, and greater operational efficiency with
frontline access to training and records for those in the field.
During the year, five apprentices and trainees from our
Networks and Operations and Maintenance divisions
graduated in various technical disciplines, including
Electrical, Mechanical, Gas Fitting and Business
Administration. We also recorded the first graduations from
our internal Asset Maintenance for Technicians program.
This 12- to 15-month course provides new-to-role
technicians with asset-specific skills needed to perform
their roles.
FY25 ANNUAL REPORT APA GROUP 31
Infrastructure and
business intelligence
For the past 25 years, we’ve been running and growing the business, driving innovation
and playing a leading role in Australia’s energy transformation. We responsibly invest,
build, own and operate assets, leveraging our expertise and experience to enable safe,
reliable delivery of energy.
APA operates a $27 billion portfolio of diverse energy
infrastructure assets, with a growing focus on power
and renewable energy generation as we lead the
transition to a lower emissions future.
Underpinning our power assets is APA’s extensive gas
infrastructure, including more than 15,000 km of natural
gas pipelines that connect supply sources with customers
across mainland Australia. Our gas assets — including
storage facilities and distribution networks servicing 1.5
million homes and businesses — provide reliability, security
and support as the energy system evolves.
Our power generation portfolio includes 692 MW of
renewable energy assets, including wind and solar farms
across Western Australia and Queensland, and 884 MW of
gas-fired generation assets, which provide flexible, firming
capacity to ensure reliability of supply. These assets
position APA to play a leading role in Australia’s energy
transition.
In addition, we operate critical high-voltage electricity
transmission infrastructure, connecting major regions,
including Victoria to South Australia, New South Wales
to Queensland and Tasmania to Victoria — enabling the
flow of energy across the National Electricity Market (NEM).
APA’s integrated portfolio of generation, transmission
and gas infrastructure assets places us at the centre of
Australia’s energy transformation — enabling growth in
renewables while maintaining energy reliability today.
Value driver metrics
Scheduled gas transmission
nominations delivered
99.99%
HVDC availability
92.42%
Remote grid customer availability
99.34%
Stay-in-business capex
$218m
Cyber security training completed
95.56%
Board focus areas
•
Consider project approvals aligned to APA’s
strategy to maximise long-term securityholder
value and become the partner of choice for our
customers.
•
Oversaw 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 the Kurri Kurri Lateral
Pipeline and Storage Station Project in New South
Wales, the Wallumbilla Hub in Queensland and
APA’s Integrated Operations Centre in Brisbane,
to observe site operations and interact with our
team members to gain a better understanding
of key risks and opportunities, and challenges.
Aligned FY25-27 Sustainability Roadmap commitments
Where practical and to support integrated reporting, we have aligned our Sustainability Roadmap commitments with
our value drivers. More detail on our Sustainability Roadmap progress can be found in the FY25 Sustainability Data Book.
Commitment
Status
FY25 progress
Energy reliability and affordability
Continue to provide diversified and innovative solutions
that respond to existing and future customer needs
●
Our FY25 Customer Engagement Score was 6.4 out of 10,
compared to 7.1 in 2024.
Continue to build, own and operate energy
infrastructure to enable the delivery of reliable and
affordable energy as part of the energy transition
●
99.99% of scheduled gas nominations were delivered
across APA transmission assets, excluding Victoria.
Strategic investments into energy infrastructure to
support the decarbonisation of the energy system in
remote and regional parts of Australia
●
99.34% of contracted energy (MWh) was delivered, despite
an unplanned outage at Pilbara Newman Assets in August
2024 that impacted overall reliability.
Status: ● Complete ● In progress ● Not yet started
32 APA GROUP FY25 ANNUAL REPORT
Safe, reliable and efficient operation of
our assets
APA has delivered a solid operational performance in
FY25, demonstrating our capability in operating a diverse
portfolio of energy infrastructure assets.
Through our continued focus on operational
excellence, across our portfolio in FY25, we delivered:
99.9%
gas transmission
nominations
99.3%
remote generation
customer availability
92.4%
high-voltage direct
current availability
These results demonstrate APA’s strong and consistent
operational performance, with high levels of reliability
maintained across our gas transmission and remote
power generation assets. HVDC availability improved to
92.4% in FY25, up from 90.1% in the previous year, reflecting
the benefits of targeted maintenance and system
investments. Together, these outcomes reinforce the
strength of APA’s asset management practices and our
ongoing investment in network reliability.
In FY25, we invested $47 million to meet the requirements
of the Security of Critical Infrastructure Act 2018, ensuring
our critical assets remain protected and resilient.
Further information on our cyber governance approach
can be found in the Governance section.
We undertake disciplined investment in the maintenance
of our assets to ensure they continue to deliver the reliable
energy APA’s customers and communities rely on. One of
our major initiatives, the Grid Solutions Project, will upgrade
APA’s energy components software platform to improve
visibility, coordination, modernised products and billing —
enabling us to deliver a better experience for the
customers we serve.
CASE STUDY
Preparation is key to asset
resilience and recovery in
natural disasters
During FY25, APA’s assets were impacted by
multiple severe weather events, reinforcing the
importance of robust planning and resilient
infrastructure.
On the west coast, one of the most significant
events was Cyclone Zelia, which brought
destructive winds and heavy rainfall to north-
west Western Australia. The cyclone affected
both remote power generation sites and key
infrastructure corridors, testing the resilience
of assets across a large geographic area.
On the east coast, widespread and sustained
flooding across parts of Queensland and New
South Wales created access challenges and
threatened critical transmission routes. Despite
these disruptions, APA continued to safely and
reliably deliver energy to our customers,
demonstrating the effectiveness of our
emergency response frameworks and localised
asset knowledge.
These outcomes are the result of disciplined
planning and preparation. Early mobilisation, risk-
informed asset design and strong coordination
with emergency services and customers
enabled APA to minimise service disruption and
prioritise safety. Events like Cyclone Zelia
underscore the value of our continued
investment in operational resilience, enabling us
to respond effectively to natural disasters and
support the communities we operate in.
FY25 ANNUAL REPORT APA GROUP 33
CASE STUDY
Kurri Kurri Lateral Pipeline
and Storage Project
APA’s investment in the Kurri Kurri Lateral Pipeline
and Storage Project highlights our role in
supporting the reliability and flexibility of
Australia’s east coast energy system. The project
involves the construction of a new high-pressure
gas lateral pipeline and associated storage
infrastructure to supply the Hunter Power Project
in New South Wales, operated by Snowy Hydro.
This important development will deliver fast-start
gas to support firming capacity in the National
Electricity Market. It will play a critical role in
enabling the transition to renewables by
providing on-demand energy during periods of
low solar and wind generation.
Throughout FY25, APA progressed construction
safely and efficiently, with a strong focus on
environmental management and stakeholder
engagement. The project leverages APA’s deep
experience in delivering complex pipeline
infrastructure, as well as our track record of
working in partnership with government,
customers and local communities.
The Kurri Kurri project strengthens APA’s position
in the East Coast Gas network and reinforces our
commitment to delivering infrastructure that
underpins energy reliability and supports the
broader energy transition. It also highlights the
importance of flexible gas infrastructure in
meeting peak demand and maintaining system
stability as Australia moves towards a lower
carbon future.
FY25 process safety performance
In FY25, APA continued its Process Safety maturity journey,
building on the benchmarking exercise initiated in FY24.
The resulting roadmap, informed by the Energy Institute’s
Process Safety Management Framework and a strategic
review conducted with support from an expert in the field,
is now guiding the refresh of APA’s process safety
framework.
Key initiatives delivered during the year included:
•
integration of process safety metrics and completion
of Safety Critical Element (SCE) mapping across the
majority of all gas assets
•
deployment of a Power BI interface for real-time SCE
tracking via Maximo
•
completion of Process Hazard Analysis (PHA) workshops
for key assets, with no urgent risks identified
•
implementation of a new Management of Change
(MoC) workflow, enhancing governance for asset
modifications
•
establishment of Safety Critical Roles (SCRs) and
formalisation of decision rights for engineering controls
to prevent Major Accident Events (MAEs).
These initiatives strengthen APA’s process safety
governance and position APA for continued improvement
in FY26. Our focus in FY26 will be on leadership
development, national standardisation of performance
standards, and enhanced monitoring of safety-critical
systems.
Delivering enhanced operational outcomes
through compressor efficiency
APA is delivering strong operational and environmental
performance through improvements in compressor
efficiency across its gas transmission network. In FY25, we
are on track to achieve our lowest fuel gas intensity since
our emissions baseline year — a 10% reduction compared
to FY21. Our three largest pipelines — the Moomba Sydney
Pipeline (MSP), Goldfields Gas Pipeline (GGP) and South
West Queensland Pipeline (SWQP) — are collectively
performing 22% better than FY21 benchmarks.
These gains reflect the value of data-driven optimisation,
targeted dispatch strategies and disciplined asset
management. In practical terms, we have avoided over
25,000 hours of compression across key sites, resulting in
approximately $2.25 million in avoided operating and
maintenance costs.
These outcomes support APA’s commitment to delivering
safe, reliable and lower emissions energy transport. They
also help manage long-term cost exposure, strengthen
regulatory positioning, and enhance value for customers
through more efficient and sustainable operations. Refer
to our Climate Report for further details on emissions
reduction.
INFRASTRUCTURE AND BUSINESS INTELLIGENCE (CONTINUED)
34 APA GROUP FY25 ANNUAL REPORT
Asset integrity management
In FY25, APA continued to strengthen its approach to asset
integrity management to ensure safe, reliable and
efficient operation of our infrastructure. We retain clear
asset management objectives and targets aligned with
our risk framework and corporate strategy.
Formal Asset Management Plans are implemented and
routinely reviewed across all priority assets to support
lifecycle planning and capital allocation. Targeted training
and awareness initiatives are delivered to build capability
across our workforce, while regular internal and external
audits provide assurance and identify opportunities for
improvement.
Continual improvement remains a core focus, with
insights from audits, condition monitoring and operational
feedback used to refine our practices and enhance long-
term asset performance
Crisis and emergency response program
APA recognises the core enterprise resilience domains of
crisis management (including incident management),
business continuity, and emergency response as
fundamental responsibilities of an organisation and key to
maintaining business operations.
Incidents are managed across different levels of response,
from localised incidents with minimal impact through to a
crisis that could result in material damage and impacts.
Crisis management is for the most severe incidents
requiring strategic decision-making and executive
leadership.
The Crisis Management Team comprises Group Executives
(or their alternates), relevant business leaders for
emergency response or business continuity and any
technical experts dependent on the type of crisis.
The Board has an important role in the effective oversight
of APA’s management of a crisis, and may establish a sub-
committee to support the Crisis Management Team
depending on the nature of the crisis. The Board undertook
a simulation exercise during the year to review and
practise processes and the interface with the Crisis
Management Team.
For major incident response, requiring dedicated
resources and a centralised response, we have major
incident response and recovery. For all asset-related
responses, we have our emergency response program
and for IT incidents, including cyber, we have an IT incident
management program.
APA’s emergency response program has clearly defined
all the necessary roles and responsibilities for emergency
preparedness, response and post-incident investigation.
The roles of emergency management coordinators, safety
officers, asset managers and communication leads are
essential for effective management of an emergency
(including evacuation, incident containment and
information gathering). Managerial responsibility for
program governance and oversight ensures compliance
with relevant APA policy and procedures, via periodic
management reporting.
The emergency response program also includes well-
established communication protocols for engaging with
external stakeholders, including emergency services,
regulatory agencies, community leaders and the media.
These protocols outline who is authorised to share
information, what type of information should be disclosed,
and the timing and method of communication.
Maintaining transparent and timely communication
fosters trust and is important in managing reputation risk.
To further support readiness, the emergency response
program incorporates comprehensive emergency
training. This training covers the proper use of emergency
equipment, evacuation drills and scenario-based
exercises. Regular testing and evaluation of emergency
response plans through simulations help identify
weaknesses and ensure that all participants remain
familiar with procedures. Continuous improvement is
driven by feedback from these exercises, keeping the
response plans effective and current.
Data privacy
APA recognises that the protection of personal information
is critical to maintaining trust and meeting our regulatory
obligations. Privacy risks, including unauthorised access,
data loss and regulatory non-compliance, have the
potential to impact APA’s operations, stakeholders and
reputation.
APA has implemented a structured privacy management
program aligned with the Privacy Act 1988 and the Security
of Critical Infrastructure Act 2018 (SOCI). Privacy risk is
integrated into APA’s enterprise-wide compliance
management framework and is subject to formal
oversight by the Board Risk Management Committee
through regular reporting.
The program is managed by a designated Privacy Officer
and supported by group-wide policies, standards and
procedures. It applies across all APA operations, including
third parties and suppliers, with privacy obligations
incorporated into procurement and vendor governance
processes.
To ensure privacy risks are appropriately managed and
regulatory obligations are met, APA has implemented the
following key measures:
•
conducting Privacy Impact Assessments (PIAs) and
associated risk reviews across key projects and
business processes
•
applying technical and organisational controls to
mitigate privacy risks
•
managing third-party privacy risk through
procurement oversight and due diligence
•
providing mandatory privacy training for all employees,
delivered at onboarding and refreshed annually
•
sharing regular internal communications to promote
ongoing awareness and reinforce understanding of
privacy responsibilities
•
conducting internal and third-party audits to monitor
compliance with privacy obligations
•
maintaining and periodically testing a Data Breach
Response Plan to ensure effective breach
management and regulatory reporting.
FY25 ANNUAL REPORT APA GROUP 35
Customers and partners
APA Group serves a diverse array of customers across a range of industries, including energy
wholesale and retail suppliers, large commercial and industrial firms, resources companies,
and government owned-corporations.
Our customers all rely on the extensive range of energy
infrastructure solutions APA can provide to meet their
energy needs. Over the past 25 years, we have continued
to expand and grow, reflecting the changing needs of our
customers and the transformation of Australia’s energy
system.
APA is committed to driving long-term value with our
stakeholders through responsible and sustainable
procurement. In FY25, we launched our Sustainable
Procurement Framework to embed environmental, social
and economic considerations across the procurement
lifecycle. We also advanced our First Nations Procurement
Strategy, aligning with our Reflect RAP and deepening
engagement with First Nations businesses.
The launch of the APA Supplier Code of Conduct
formalised our expectations around human rights, ethics,
inclusion and environmental stewardship. Our supplier ESG
program, overseen by governance committees, ensures
rigorous screening, assessment and continuous
monitoring of supply chain risks, with clear pathways for
remediation.
Value driver metrics
Customer Experience Score
6.4
Growth capex ($ m)
655
Small business payment terms
88.6 %
Board focus areas
•
Received updates on customer and stakeholder
engagement as well as reputation and
perception measurements.
•
Continued to strategically develop and
strengthen relationships with key partners and
other stakeholders.
Aligned Sustainability Roadmap commitments
Where practical and to support integrated reporting, we have aligned our Sustainability Roadmap commitments with
our value drivers. More detail on our Sustainability Roadmap progress can be found in the FY25 Sustainability Data Book.
Commitment
Status
FY25 progress
Modern slavery and responsible value chain
Implement the Responsible Procurement Strategy
●
Ongoing enhancements in modern slavery management
were driven by the progress made against the FY25
Modern Slavery Roadmap objectives.
Implement the Social Procurement Framework
●
In FY25, our Social Procurement Framework was expanded
into a comprehensive Sustainable Procurement
Framework. This enhanced approach integrates broader
sustainability considerations and reinforces our
commitment to ethical and responsible procurement
practices.
Develop / implement the Supplier Code of Conduct
●
In FY25, APA developed and published a new Supplier Code
of Conduct, establishing clear and consistent guidelines
and expectations for our suppliers.
Develop an APA Human Rights Policy
●
FY25 focused on the development and release of a Modern
Slavery Policy, with a new Human Rights Policy planned for
approval and publication in FY26-27.
Status: ● Complete ● In progress ● Not yet started
36 APA GROUP FY25 ANNUAL REPORT
Staying focused on our customers
This year, there has been a significant effort to strengthen
the customer-focused culture across APA. In August 2024,
our new culture statement identified the importance
of a 'customer focus' across the organisation. To help
embed this, we have introduced dedicated training and
communications to build a greater understanding of
our customers and the customer experience.
This is driving a greater focus on considering the customer
perspective in all of our decisions, activities and future
plans, including the development of new services to
meet our customers' needs.
For example, in February we announced an expansion
of our East Coast Grid. This will assist the market to
access lower cost and lower emissions domestic gas for
customers to manage peak demand periods, with plans
for further expansions should there be sufficient demand.
Customer experience
APA’s annual commercial customer experience survey
was completed in June 2025 and involved a quantitative
survey administered by an independent external agency.
The key deliverable from the survey is our Customer
Experience Score (CES), which measures attributes
such as trust, responsiveness, value, ease, rapport
and innovation. Our CES was 6.4 out of 10.
Our score in 2024 was 7.1. This reduction may be driven
in part by the increasing complexity of the energy market
and challenges faced by all participants to balance
affordability, reliability and sustainability. We also
recognise that there is an opportunity to improve how we
communicate with customers when we may need to take
assets offline to perform maintenance or upgrades.
This can include activities like valve replacements to
support us to lower our emissions. We understand that
better coordination of these activities will enable
customers to plan and minimise any disruption to their
business. We take this reduction in score seriously and we
are working to understand how we can improve our
customer experience.
APA develops an annual Customer Action Plan to drive
improvements in customer experience. Over the past few
years, this plan has focused on enhancing customer
consultations on maintenance capacity impacts,
increasing transparency on long-term maintenance
plans, improved responses to outages and incidents,
offering service flexibility, including hourly profiles for
transportation services to support renewables and gas-
powered generation, and upgrading systems to speed
up contract implementations.
Another part of the plan has been to engage with senior
representatives within our customer groups to increase
their trust in APA. This trust is critical when customers
choose us as their partner of choice in delivering
infrastructure solutions for the energy transition.
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.
In addition to our annual survey, we regularly monitor
and manage the customer experience through:
dedicated account managers, assigned to key
commercial customers; a monthly review meeting to
monitor customer feedback, service delivery and
performance across our key customers; and a quarterly
Customer Experience Dashboard monitoring APA’s
performance in key practical measures.
APA also maintains a structured and transparent
commercial Customer Complaints Process, providing a
formal mechanism through which our existing customers
can raise issues for resolution. In FY25, four formal
complaints were received, which related to a range of
issues associated with maintaining pipeline capacity. Each
complaint was addressed and appropriately resolved. In
line with our continuous improvement framework, we
conducted comprehensive ‘Lessons Learnt’ reviews for
each complaint.
The findings were then used to develop actions targeted
to prevent recurrence. Importantly, we shared these
reviews with the relevant customers to ensure
transparency and demonstrate our commitment to
learning and improvement. This process not only resolved
individual concerns but also strengthened our operational
resilience and customer relationships.
Each month, APA undertakes a proactive review of
potential vulnerable customers – those who may be
facing financial hardship, credit pressures, or other
challenges that could impact their ability to meet
contractual obligations.
The objective of this review is twofold: first, to identify early
signs of vulnerability before they escalate into critical
issues; and second, to develop tailored, supportive
responses that help mitigate risk for both our customers
and our operations. By taking a preventative rather than
reactive approach, APA seeks to maintain strong, stable
relationships with all customers.
We also keep customers informed about the availability
of our infrastructure assets, recognising that reliability is
the most important issue for our customers.
New initiatives are being developed for our FY26 Customer
Action Plan to further improve the customer experience.
Supporting our customers to decarbonise
FY25 saw the energy transition continue at pace, with
decarbonisation a key driver for many of our customers.
As they considered new paths to net zero, we continued to
prioritise low emissions, reliability and affordability to help
customers with the transition.
APA is committed to supporting customers on their
decarbonisation journey to find innovative ways to
lower their emissions. This means working with customers
to develop and operate integrated energy solutions
spanning power generation, firming, storage, and gas
and electricity transmission.
Throughout the year, APA has worked with customers on
innovations for gas transmission and storage including
associated infrastructure, remote renewables and firming,
electricity transmission and future energy, including
transmission options to support carbon capture and
storage, hydrogen and biomethane.
For example, in the Pilbara, APA operates a mix of assets
(solar, battery, gas generation and transmission) and is
developing a pipeline of projects, including of 1 GW+
(>$3 billion) renewables, 60 MW gas generation and over
600 km electricity transmission. This development pipeline
will support the electrification and decarbonisation efforts
of miners in the Pilbara region.
Our future investments in the Pilbara Energy System are
renewables-focused organic growth opportunities aligned
with our Climate Transition Plan. These investments will
also contribute to avoided emissions within the region
through the displacement of diesel.
FY25 ANNUAL REPORT APA GROUP 37
Customer information privacy
APA is committed to maintaining the privacy of personal
information in accordance with applicable Australian
laws. While APA’s customer base is primarily composed of
corporate entities, limited personal information may be
collected where necessary. This includes information
relating to individuals acting on behalf of organisations,
landholders, and participants in embedded networks.
A formal process is in place to enable individuals to
request access to, or correction of, their personal
information by contacting APA through the company
website.
Similarly, in line with the Australian Privacy Principles,
individuals may opt out of receiving direct marketing
communications.
APA manages all personal information in accordance with
its data lifecycle management practices, which include
securely de-identifying or disposing of information when
no longer required. APA’s approach to privacy is outlined
in the APA Privacy Statement, publicly available on
our website.
Partnering with our suppliers
In 2025, the APA Sustainable Procurement Framework
defined the core principles guiding the necessary
strategy, governance, objectives, integration, training
and performance considerations, to clearly define,
balance and embed environmental, social and economic
impact considerations seamlessly throughout the
procurement process.
We also refreshed the APA First Nations Procurement
Strategy, incorporating the procurement-related
deliverables captured within our Innovate Reconciliation
Action Plan (RAP). This includes the continuation of our
membership of Supply Nation, Social Traders, Kinaway
Chamber of Commerce, NSW Indigenous Chamber of
Commerce and NT Indigenous Business Network, and
increased understanding, value and recognition of First
Nations cultures, histories, knowledge and rights through
cultural learning.
In FY25, APA joined the Pilbara Aboriginal Business and
Industry Association, providing continued access to
a national database of First Nations and social
enterprise businesses.
Supplier Code of Conduct
In April 2025, APA published the APA Supplier Code
of Conduct, which sets out principles and standards,
and guides mutual commitments between APA and
our suppliers.
The APA Supplier Code of Conduct addresses human
rights and labour, business ethics, diversity and inclusion,
engagement with communities, our environmental
footprint and minimising APA's impacts on the
environment.
Supplier ESG Program
The APA Supplier ESG Program is overseen by the Risk
Management Committee and Safety and Sustainability
Committee, with progress and performance reporting
delivered against the Procurement Governance
Framework, which encompasses guiding principles,
strategy and performance considerations.
Procurement and purchasing practices are continuously
reviewed to ensure alignment with APA’s Sustainable
Procurement Framework, Responsible Procurement
Framework and First Nations Procurement Strategy,
with supplier screening, assessment and risk monitoring
undertaken throughout the supplier lifecycle.
OUR CUSTOMERS AND PARTNERS (CONTINUED)
38 APA GROUP FY25 ANNUAL REPORT
Image : Wallumbilla Gas Hub, Qld
Supplier screening, assessment and supply chain
risk monitoring
Procurement Checklists are utilised to screen and
determine the inherent risk of procurement and
purchasing activities, with Category and Sourcing
Strategies developed to appropriately identify, mitigate
and manage industry, supplier and region-specific risks,
such as environmental, social and governance
considerations.
Detailed Risk Assessments and Supplier Risk Treatment
Plans are defined and implemented throughout
contracting and contract management phases, which
may lead to suppliers being excluded from procurement
and purchasing activities if they do not meet ESG or other
minimum requirements. These assessments may lead to
the identification of preferred suppliers based on better
ESG performance.
Supplier assessments may include desktop assessments
with systematic verification of evidence or supplier on-site
assessments carried out by APA employees, consultants
or independent accredited auditing bodies.
Continuous supplier monitoring is undertaken to ensure
alignment to the APA Supplier Code of Conduct, to
determine relevant remediation and corrective actions,
such as Supplier Improvement Plans, or supplier off
boarding where suppliers are unable to meet APA’s
minimum ESG requirements.
Supplier Development Plans form part of the supplier
ESG program, where APA provides technical support to
build capacity and capability within the industry and
key suppliers, to improve competition and ESG
performance in suppliers.
Training
APA provides mandatory training to all employees and
contingent labour, driving awareness of key inherent risks,
strategic ESG obligations and commitments, and roles
and responsibilities throughout the purchasing process.
Role-specific training is provided to ensure individuals
responsible for undertaking supplier evaluations, contract
management and supplier management activities on
behalf of APA, are aware of their roles and responsibilities,
when identifying, assessing, managing and monitoring
supplier and supply chain risks.
Procurement practitioners are provided Ethical
Procurement and Supply training encompassing
environmentally responsible procurement, human rights,
fraud, bribery and corruption considerations to enhance
the proficiency of our practitioners, ensuring they maintain
the highest standard of integrity, while promoting the
eradication of unethical business practice, and ensuring
full compliance with laws and regulations.
FY25 ANNUAL REPORT APA GROUP 39
Environment
We work to protect the environment and land, ensuring our assets are developed and
operated in a responsible way.
APA demonstrates commitment to environmental
responsibility through its Sustainability Roadmap,
Climate Transition Plan and HSEH Strategy.
This year we uplifted processes and awareness
related to heritage and biodiversity. We also initiated
improvement of our waste- and water-related data,
which will continue throughout FY26 and FY27.
In FY25, we prepared a new Vegetation and
Fauna Protocol to enhance the management
of biodiversity-related risks and impacts, such
as the clearing of native vegetation. The early
implementation of this protocol commenced in FY25 and
will continue into FY26.
Additionally, we initiated a Contamination Assessment
Project aimed at gaining a comprehensive understanding
of potential contamination sources and ensuring the
rigour of our management measures.
For more information about our climate response,
please see the Climate Report section on page 73.
Value driver metrics
Total Scope 1 and Scope 2 emissions -
gas infrastructure (adjusted) (net)
(t CO2-e)
479,710
Power generation emissions intensity
(gross) (t CO2-e / MWh)
0.34
Environmental notices received
(warning and penalty)
0
Board focus areas
•
Approved APA’s 2024 Climate Report.
•
Oversaw the progress against our 2022 Climate
Transition Plan and the development of APA’s
new Climate Transition Plan.
•
Received quarterly climate updates on climate-
related risk and opportunities, and updates on
APA’s readiness for adoption of the mandatory
climate reporting disclosures.
•
Oversaw environment performance and
progress against key initiatives as part of the
HSEH Strategy.
Aligned FY25-27 Sustainability Roadmap commitments
Where practical and to support integrated reporting, we have aligned our Sustainability Roadmap commitments with
our value drivers. More detail on our Sustainability Roadmap progress can be found in the FY25 Sustainability Data Book.
Commitment
Status
FY25 progress
Climate risk
Deliver against phase 2 (deep-dives of prioritised APA
assets) of the physical climate risk assessment
●
In FY25, we successfully completed delivery in accordance
with the physical climate risk adaptation schedule.
Progress transition risk and opportunities assessment
●
Climate-related risks and opportunities consider the
Australian Sustainability Reporting Standard AASB S2, and are
included in our 2025 Climate Transition Plan.
GHG emissions
Deliver against the Climate Transition Plan and
associated commitments
●
Progressed 2022 Climate Transition Plan (CTP). Commitments
due to be delivered by the end of FY25 have been closed out.
The Scope 3 goal is included within our 2025 Climate
Transition Plan. Enhanced methane measurement completed
on Mondarra Storage Facility, Eastern Goldfields Gas Pipeline
and South West Queensland Pipeline assets and is disclosed
within our FY25 Climate Report.
Nature and biodiversity
Continue to build on Taskforce on Nature-related
Financial Disclosure gap assessment through
development of TNFD preparedness plan
●
The Taskforce on Nature-related Financial Disclosures (TNFD)
preparedness plan is scheduled to be developed in FY27.
Develop and deliver a new biodiversity protocol,
including associated processes, tools and templates
●
The Biodiversity Protocol and supporting tools have been
developed and implementation will continue through FY26.
Status: ● Complete ● In progress ● Not yet started
ENVIRONMENT (CONTINUED)
40 APA GROUP FY25 ANNUAL REPORT
Environmental management and assurance
APA’s HSEH Management System (Safeguard) sets the
framework for environmental management, facilitating
corrective action and continual improvement.
Alignment to Safeguard and our asset-specific
Environment Management Plans (EMP) is assessed
annually via our HSEH Assurance Schedule (refer page 31).
This year, APA conducted 13 environment audits across
construction and operational sites. A compliance rate
of 97% was achieved for APA EMP audits and 95% for
contractor EMP audits.
Our corporate environment induction is a key mechanism
for communicating environment requirements within
Safeguard and is mandatory for all employees, with
a 99.39% completion rate as at 30 June 2025.
This was the fourth year of delivering APA’s Environment
Improvement Program, which standardises processes
across our eight environment and heritage focus areas.
This Program is due to be completed in FY26 after being
extended by one year.
Year
Environment risk area
Status
FY22
Heritage
Completed
FY23
Pests, diseases and
weeds
Completed
FY23
Spill preparation and
response
Completed
FY23
Contaminated site
management
Completed
FY24
Waste
Completed
FY24
Soil, land and water
Completed
FY25
Vegetation and fauna
Completed
FY26
Air quality and amenity
Pending
We uplifted environment and heritage data, with
improvements across four key areas:
•
Invasive weeds: We have successfully completed
our three-year weed survey program, investigating
the presence of invasive weeds along our
transmission pipelines. This data will inform our long-
term monitoring and management strategies.
•
Historic heritage and contamination: We have
sourced and centralised whole-of-APA datasets
to provide a single source of truth for historic
heritage listings and contamination hazards.
•
Waste: We have continued to improve our waste
data capture and centralisation processes.
•
Water: We have initiated the capture of water
withdrawal data at priority sites.
CASE STUDY
Heritage values and
First Nations engagement
on the Moomba Wilton
Pipeline for the Stress,
Cracking, Corrosion (SCC)
Remediation Project
In FY25, we conducted comprehensive surveys
along the Moomba Wilton Pipeline (MWP) to
assess the presence of Aboriginal cultural
heritage values within the MWP easement.
All heritage-related SCC Remediation Project
activities were executed in collaboration with First
Nations stakeholders and included community
meetings, on-country surveys, heritage
mitigation, and monitoring of applicable APA
maintenance activities. As part of this
engagement, APA facilitated a dedicated field-
based training program for a Traditional Owner
group, led by both Elders and APA archaeologists.
The program was intended to enhance
awareness and capability in identifying and
recording heritage values through the sharing of
knowledge and technology.
At a glance:
•
345 km surveyed for heritage values over nine
months (35 days in total)
•
7 First Nations stakeholder groups involved in
surveys
•
75 individuals involved in surveys and field-
based work
•
265 heritage sites identified and avoided /
mitigated
•
167 maintenance sites monitored by First
Nations stakeholders
From left to right – Kerrin Edwards, Robert Norris and Taylen Tai
from the Wangkumarra participate in the knowledge sharing
session with APA
FY25 ANNUAL REPORT APA GROUP 41
CASE STUDY
Social procurement
delivering social and
environment outcomes
This year, APA partnered with Australian
organisation PonyUp for Good giving retired APA
devices a new purpose.
PonyUp for Good focuses on responsible reuse of
unwanted or end-of-life technology and
reducing waste disposed to landfill. Importantly,
half of PonyUp’s re-sale proceeds are directed
towards providing nutritious meals for
disadvantaged Australians.
For our first test case, PonyUp for Good collected
87 kilograms of APA's retired technology. They
were able to reuse 97.7% of the technology.
Turning the technology from this collection
enabled PonyUp for Good to purchase 3,156 Fresh
Meal Donations from SecondBite.
In FY26, we plan to continue working with PonyUp
for Good.
Environmental compliance
APA complied with environmental regulations in FY25.
Zero penalty infringement notices or warning notices
were received. Nine incidents were reportable to regulator;
however, these were immaterial.
0
Environmental warning notices received
Environmental penalty notices received
FY20
FY21
FY22
FY23
FY24
FY25
0
1
2
3
4
5
6
7
8
9
10
Strengthening our focus on heritage
management
In FY25, we continued to focus on heritage improvements.
We prepared and released a refreshed Heritage Protocol
and associated tools. This initiative was supported by
business awareness sessions and integration of
requirements into business processes.
We finalised the content of the Cultural Heritage Learning
Program for field-based technicians. This e-module is
designed to uplift awareness of heritage values and
management measures and will be launched in FY26.
Climate change transition and risk
Our annual standalone Climate Report has been
integrated into our Annual Report for the first time in 2025.
Our dedicated Climate Report section, commencing on
page 73, reports progress against our Climate Transition
Plan, including the key success metrics defined in this
section.
ENVIRONMENT (CONTINUED)
42 APA GROUP FY25 ANNUAL REPORT
Social licence
As Australia’s energy infrastructure partner, APA has been at the heart of Australia’s energy
story for the past 25 years. We strive for valued relationships with First Nations Peoples,
landholders and local communities, recognising the important place they have in the work
we do.
In FY25, we continued to strengthen the way we consider
community stakeholders in what we do across APA. Some
highlights from year include:
•
successful completion of our Reflect Reconciliation
Action Plan - strengthening a foundation to support
further maturity uplift as we progress to our Innovate
RAP launch in FY26
•
completing the pilot in Mount Isa and extending our
community and social performance system to support
our activities in the Pilbara region – reflecting a move to
integrate social performance into the way we operate
•
over $6,771,505 spent with First Nations organisations
across the business
•
contact with 11,934 landholders through our Landholder
Contact Program
•
continuing to work closely with our corporate partners
to support the community.
Value driver metrics
Reputation
73.7
RAP commitments achieved
72
Social investment
$1,037,714
Board focus areas
•
Oversaw progress against APA’s commitments
identified in our Reflect Reconciliation Action Plan
and the development of our Innovate
Reconciliation Action Plan.
•
Received updates on our modern slavery risks
across our operations and supply chain,
including approving APA’s Modern Slavery
Statement demonstrating compliance and
commitment to ethical supply chains.
•
Maintained focus on APA’s cyber security posture,
data protection strategies, incident response
plans, and overall operational resilience.
Aligned Sustainability Roadmap commitments
Where practical and to support integrated reporting, we have aligned our Sustainability Roadmap commitments with
our value drivers. More detail on our Sustainability Roadmap progress can be found in the FY25 Sustainability Data Book.
Commitment
Status
FY25 progress
Local communities
Develop and implement a
Community and Social Performance
Management System
●
A systems-based approach to Community and Social Performance (CSP) is
being implemented in priority regions.
In FY25, this included full implementation in Mount Isa and the
commencement of implementation in the Pilbara.
Further development and expansion of the approach is planned for FY26.
Finalise / implement APAs social
investment framework
●
In FY25, APA reached over 1 million dollars (AUD) in social investment. While this
is a reduction compared with FY24, total annual investment is impacted by
the timing of major projects with social investment budgets. This total is
expected to increase as projects progress.
First Nations engagement and partnership
Deliver Reflect RAP
●
The Reflect Reconcilliation Action Plan (RAP) was completed in FY25, with
progress and achievements outlined in our newly released Innovate RAP.
Develop and deliver Innovate RAP
●
The Innovate Reconcilliation Action Plan (RAP) has been developed and
endorsed by Reconciliation Australia and approved by the APA Board.
Develop First Nations Policy
●
In FY25, APA focused on the development of the Innovate Reconcilliation
Action Plan (RAP). A First Nations Policy will follow, with development and
approval planned for FY26-27.
Status: ● Complete ● In progress ● Not yet started
FY25 ANNUAL REPORT APA GROUP 43
Community and social performance
We recognise the importance of understanding
and considering local communities in the way we
develop, deliver and operate our energy infrastructure.
We are committed to proactively building meaningful
relationships with local community stakeholders,
taking their views and perspectives into account
in how we operate.
In line with our Sustainability Roadmap, we are
strengthening the way we do this through implementing
our Community and Social Performance Standard and
developing community and social performance systems
in our priority regions.
Our systems approach to social performance includes
processes that guide social baselining and research,
social management plan development, stakeholder
engagement planning, social risk and impact
identification, commitment tracking and complaints
management. A Community and Social Performance
Management Plan is developed for each identified region
to inform and guide community engagement and social
outcome management.
A Community and Social Performance Management
Committee comprising APA representatives from across
the business, leading projects, operations and related
activities, manage the ongoing performance of the
regional system. This ensures that APA is actively
managing social risks and opportunities, and responding
to feedback from communities and other stakeholders in
a coordinated way to continue to strengthen our social
licence.
Throughout FY25, we continued to pilot this approach in
the Mount Isa region. Based on the success of the Mount
Isa Pilot, we’ve also started implementation of a
community and social performance system in the Pilbara
region, and strengthened our social performance
management in new projects in line with the Community
and Social Performance Standard.
Key community and social performance outcomes
achieved in FY25 include:
•
refining and broadening the implementation of our
community and social performance systems approach
•
continuing implementation of our new Community
and Social Performance Standard. This included
strengthening APA’s approach to complaint
management through a new Community Grievance,
Complaints and Feedback Guideline, which supports
increased consistency, visibility and timely response
across our operations and projects
•
establishing a position on ‘just transition’ that considers
impacts and opportunities for local communities while
we transition to a low carbon economy. This position
has been incorporated in to our 2025 Climate
Transition Plan
•
increasing capability in social performance, including
employees specialising in First Nations engagement.
Executive responsibility for community and social
performance sits with our Group Executive, Sustainability
and Corporate Affairs. This is supported by the executive-
level Sustainability Management Committee, which has
governance oversight.
First Nations Peoples and reconciliation
APA operates energy infrastructure across Australia
and we are focused on respectful engagement with
First Nations Peoples, growing our cultural capability
and delivering on our reconciliation plans.
In FY25, we delivered all remaining actions under
our inaugural Reflect Reconciliation Action Plan (RAP)
launched in October 2023. Key outcomes for the year
include:
•
delivering an uplift in cultural awareness through
targeted cultural learning programs, including training
for the Board, Executive Leadership Team and Senior
Leadership Team
•
procuring over $6.77 million from 41 First Nations
suppliers — expanding our supplier base and building
stronger partnerships. This is an increase from $2.75
million in FY24
•
maintaining our First Nations workforce participation
with 40 employees (approximately 1.45% of total
workforce) who identify as First Nations, with continued
focus on recruitment, retention and tracking progress
•
boosting internal engagement through the
Reconciliation Allies network and broad participation
in RAP events.
In FY25, we also developed our Innovate RAP, which has
allowed APA to continue our momentum on reconciliation
as we close out our Reflect RAP. Our Innovate RAP is
focused on continuing to build cultural capability across
the business, improving engagement with First Nations
stakeholders, and embedding more consistent, long-term
partnerships across APA’s national footprint.
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 FY25, 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. 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. It also provides an opportunity for landholders
to raise any concerns they may have.
The Landholder Contact Program aims to make contact
with at least one representative from each land parcel on
our operational footprint every year. This is achieved with
a mix of face-to-face visits and phone calls, depending
on requirements.
In FY25, we completed scheduled visits with 94% of our
landholders and associated contacts. This equates to
exchanging information with 11,934 contacts. Over the
past few years, we have consistently completed at
least 90% of scheduled visits with landholder contacts..
SOCIAL LICENCE (CONTINUED)
44 APA GROUP FY25 ANNUAL REPORT
Social investment
To support community outcomes, APA recognises the
importance of targeted social investment. In FY25, we
provided $1,037,714 in social investment, including
employee-driven initiatives across a range of areas,
including rural and regional communities, First Nations
Peoples, climate transition and natural environment
protection.
This year, we have also continued to support our valued
corporate partners. These partnerships are delivering
on the following outcomes:
•
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 Energy Support Program: Delivering energy
literacy programs to provide ongoing financial
counselling support for vulnerable energy customers
facing challenging circumstances.
In addition to the partnerships, APA contributed to 26
community organisations as part of our Community
Grants Program. Projects funded under this program
included First Nations initiatives, social infrastructure
investment, community connection activities, and
community health and wellbeing initiatives across our
East Coast Grid Expansion, Kurri Kurri Lateral Pipeline,
Sturt Plateau Pipeline, Moomba to Wilton and Mount
Isa and Cloncurry assets.
CASE STUDY
Wilga Indigenous
Corporation
Wilga Indigenous Corporation, a Supply Nation-
registered First Nations business specialising in
fencing and asset protection, partnered with
APA in FY25 to deliver physical security upgrades
across key Northern Territory sites. The work
supported compliance with the Security of
Critical Infrastructure Act and aligned with
APA’s broader asset management strategy.
Wilga employed local First Nations workers from
the Barkly, Katherine and Mataranka regions. APA
supported delivery through on-site inductions,
upskilling and cultural awareness training.
The project was completed efficiently, with strong
site coordination and real-time progress tracking
via APA’s digital tools. The partnership delivered
both operational outcomes and regional
employment opportunities.
Following this successful engagement, APA
is exploring opportunities to expand the
partnership to additional sites across the
Northern Territory.
FY25 ANNUAL REPORT APA GROUP 45
CASE STUDY
APA advocacy for securing
Australia's energy future
APA continues to play a leading role in
advocating for a stable, long-term approach to
Australia's energy security – grounded in the
recognition that gas will be essential well beyond
2050 as highlighted in the Australian
Government's Future Gas Strategy.
We have been a vocal and evidence-based
contributor to policy discussions, supporting the
development of the Future Gas Strategy, and
highlighting the importance of new domestic
supply from basins such as the Beetaloo and
Surat.
With over $27 billion in energy infrastructure
under management, APA has backed our
advocacy with action – announcing a five-year
East Coast Gas Grid Expansion plan, including
new storage solutions to firm renewable energy.
Working alongside industry, customers and
government, APA has helped shift the national
conversation. There is now widespread
recognition that unlocking reliable, affordable,
lower emissions domestic gas is central to
keeping the lights on, fuelling industry, and
supporting a smooth and secure energy
transition.
APA is a strong voice and partner in securing
Australia's energy future.
Modern slavery
APA is committed to – addressing modern slavery and
acknowledges the importance of being vigilant to the risks
of modern slavery in our operations and supply chains.
Our work through the year reflects our ongoing focus on
continuous improvement in identifying, assessing and
addressing modern slavery risks across our operations
and supply chains.
In FY25, we continued to strengthen our modern slavery
approach through:
•
greater integration of modern slavery risk
management throughout the procurement lifecycle,
including embedding capability across the
organisation
•
continued training for identified key roles and modern
slavery awareness initiatives for the broader
organisation
•
supplier risk assessments within key sectors
•
introduction of a new Modern Slavery Policy and
Supplier Code of Conduct formalising our evolving
approach, including updating the grievance process
for suppliers.
Throughout the year, the modern slavery cross-functional
working group continued to be a forum for monitoring
APA’s approach to modern slavery, including modern
slavery program delivery, emerging modern slavery risks,
and assessments for high-risk categories of spend.
Further detail on our approach to modern slavery will be
provided in our FY25 Modern Slavery Statement due to be
released in Q2 FY26.
Engagement with government and industry
to facilitate the energy transition
As part of our FY25 strategy, we engaged with government
stakeholders in all jurisdictions 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.
FY25 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 the BCA, APGA, ENA, Chamber of Minerals and Energy
Western Australia and regular articles through our new
blog, Transmission.
SOCIAL LICENCE (CONTINUED)
46 APA GROUP FY25 ANNUAL REPORT
Financials
FY25 earnings driven by strong
performance across the portfolio
and disciplined cost control.
In FY25, APA delivered a strong result:
•
Underlying EBITDA increased 6.4% to $2,015 million
(FY24: $1,893 million) driven by a full year contribution
from the Pilbara Energy System, inflation-linked tariff
escalations, and favourable recontracting.
•
Continued growth in Underlying EBITDA margin driven
by inflation-linked tariff escalation and early benefits
from cost reduction initiatives.
•
Growth in Free Cash Flow (FCF) driven by strong
performance across portfolio, offset by increased
debt funding costs and tax payments.
•
An increase of 1.8% in total distributions to 57.0 cents per
security, in line with guidance.
Value driver metrics
Underlying EBITDA
$2,015m
Free Cash Flow
$1,083m
DPS
57.0cps
Board focus areas
•
Approved the capital management strategy to
ensure APA maintains a strong financial position
and prudent approach to capital management.
•
Reviewed relevant accounting issues and
policies, including Delegations of Authority and
Treasury Risk Management.
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.
Key financial data for FY25
30 June 2025
30 June 2024
Changes
$m
$m
$m
%
1
Statutory Revenue
Total revenue
3,204
3,064
140
4.6 %
Pass-through revenue
2
491
473
18
3.8 %
Total revenue excluding pass-through
2,713
2,591
122
4.7 %
Total segment revenue excluding pass-through³
2,716
2,582
134
5.2 %
Underlying EBITDA⁴
2,015
1,893
122
6.4 %
Non-operating items
(121)
(157)
36
22.9 %
Total reported EBITDA
1,894
1,736
158
9.1 %
Depreciation and amortisation expenses
(990)
(919)
(71)
(7.7) %
Total reported EBIT
904
817
87
10.6 %
Net interest and other finance costs
(657)
(579)
(78)
(13.5) %
Significant items⁵
–
835
(835)
n.m
Profit before income tax
247
1,073
(826)
(77.0) %
Income tax expense
(118)
(75)
(43)
(57.3) %
Statutory profit after tax including significant items
129
998
(869)
(87.1) %
Profit after tax excluding significant items
129
119
10
8.4 %
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
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
In the prior year, significant items were comprised of $1,051 million fair value remeasurement of APA's previously held 88.2% interest in Goldfields Gas
Transmission joint operations, partly offset by $72 million Pilbara Energy System acquisition costs and $144 million non-cash impairment of the Moomba
Sydney Ethane Pipeline (MSEP).
FY25 ANNUAL REPORT APA GROUP 47
Key financial data for FY25 (continued)
30 June 2025
30 June 2024
Changes
$m
$m
$m
%
1
Financial Position
Total assets
19,937
19,563
374
1.9 %
Total drawn debt
13,350
12,893
457
3.5 %
Total equity
2,668
3,248
(580)
(17.9) %
Financial ratios
Free cash flow
2
1,083
1,073
10
0.9 %
Free cash flow per security (cents)
83.0
83.6
(0.6)
(0.7) %
Earnings per security including significant items (cents)
9.9
78.9
(69.0)
(87.5) %
Earnings per security excluding significant items (cents)
9.9
9.4
0.5
5.3 %
Distribution per security (cents)
57.0
56.0
1.0
1.8 %
Distribution payout ratio (%)³
68.7
67.0
1.7
2.5 %
Weighted average number of securities (millions)
1,295
1,265
30
2.4 %
1
Positive/negative changes are shown relative to impact on profit or other relevant performance metric.
2
Free cash flow is defined as Operating Cash Flow adjusted for strategically significant transformation projects, acquisition, integration and disposal-related
costs, and capital returns from Joint Ventures, less stay-in-business capital expenditure. Stay-in-business capital expenditure comprises operational asset
lifecycle replacement costs and technology lifecycle costs.
3
Distribution payout ratio = total distribution applicable to the financial year as a percentage of free cash flow.
APA's total segment revenue (excluding pass-through)
increased $134 million or 5.2% to $2,716 million (FY24: $2,582
million) with Underlying EBITDA increasing by $122 million
or 6.4% to $2,015 million (FY24: $1,893 million).
Statutory profit after tax including significant items
decreased by 87.1% to $129 million (FY24: $998 million)
driven by significant items in the prior year in relation to
the acquisition of the Pilbara Energy System resulting in
a valuation uplift, net of transaction costs, of $979 million,
partly offset by a $144 million non-cash impairment of the
Moomba Sydney Ethane Pipeline as a result of its single
customer entering voluntary administration and
ceasing operations. In the current year a $21 million non-
cash impairment of goodwill and associated transaction
costs was incurred in relation to the Networks Business
classified as held for sale.
Profit after tax excluding significant items increased by
8.4% to $129 million (FY24: 119 million).
Net interest and other finance costs increased by $78
million or 13.5%, to $657 million (FY24: $579 million) primarily
driven by the increase in net debt following the issue of
USD 1.25 billion (AUD 1,879 million) US144A / Reg S notes
with 10 and 20 year maturities, as well as the full year
contribution of interest on APA's hybrid subordinated
capital securities (AUD 828 million) and syndicated term
loans (AUD 1.25 billion) issued in November 2023.
The Wallumbilla Gladstone Pipeline hedge relationship was
discontinued in FY25 following a change in hedging
strategy. APA now hedges the outstanding foreign
currency exposures on the USD debt and forecast USD
revenue separately.
As a consequence of this change, all historical cumulative
amounts in reserves are crystallised and amortised back
to Profit or Loss over time through statutory revenue
(through FY35) and finance costs (through FY30).
Additionally, where debt instruments (including cross
currency swaps (CCS)) are no longer in a hedge
relationship and not swapped into AUD, the CCS
instruments are marked-to-market and the debt
instruments are revalued at the spot FX rate at balance
date, in Profit or Loss through net interest and other
finance costs. The FY25 impact of this is a $51 million non-
cash reduction in revenue and $9 million non-cash loss
recorded in net interest and other finance costs.
The average interest rate applying to drawn debt,
including credit margins, was 5.12% for FY25 (FY24: 4.77%).
This increase in average interest rate year-on-year is
largely due to the higher marginal interest rates on the
USD 1.25 billion US 144A transaction in September 2024 and
the full year impact of the €500 million hybrid capital
securities and $1.25 billion syndicated loan bank loans
transactions that occurred in November 2023.
Depreciation and amortisation expenses increased by
$71 million or 7.7% due to the growth in the asset base,
including the full year impact of the Pilbara Energy System
along with capital expenditure on new assets.
FINANCIALS (CONTINUED)
48 APA GROUP FY25 ANNUAL REPORT
Income tax expense for FY25 of $118 million resulted in an
effective income tax rate of 47.8%, compared with 7.0%
in the previous year. The increase is predominantly due
to the FY24 remeasurement of APA’s previous 88.2%
ownership interest in GGTP, which does not represent
assessable income for tax purposes. The high effective tax
rate is due to significant amortisation charges relating to
contract intangibles acquired with the Wallumbilla
Gladstone Pipeline. These are not tax deductible.
FY25 cash tax payable is estimated at $73 million,
which includes the utilisation of tax losses of $37 million
(transferred tax losses subject to an available fraction).
The effective cash tax payable rate is 29.6% for FY25,
compared to 3.4% in FY24, including significant items.
APA has also published a 2025 Tax Transparency Report,
which includes a reconciliation of accounting profit to
income tax payable.
Free cash flow increased 0.9% to $1,083 million (FY24: $1,073
million), due to increased earnings partly offset by the
impact of higher interest costs and tax payments.
APA's total assets increased $374 million or 1.9% to
$19,937 million (FY24: $19,563 million) driven by an increase
in the mark-to-market value of cross currency swaps
due to the depreciation of AUD against USD, EUR and GBP
during the period.
APA's total equity decreased $580 million or 17.9% to
$2,668 million (FY24: $3,248 million) mainly due to cash
distributions of $573 million paid to securityholders and
a $140 million decrease in the fair value of the hedging
reserve, offset in part by a $129 million statutory profit after
tax. The decline in the hedging reserve was driven by the
revaluation of foreign currency borrowings and the
decrease in the mark-to-market value of hedging
products related to the Wallumbilla Gladstone Pipeline.
FY25 ANNUAL REPORT APA GROUP 49
Image: Murrarylink, SA and Vic
Business segment review
APA's principal activities are:
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 investments.
ENERGY INVESTMENT
APA's interests in energy
infrastructure investments.
Energy infrastructure
FY25 Performance
•
Largest business segment contributor to APA Group
results
•
Segment revenue (excluding pass-through)
increased 5.8% to $2,579 million (FY24: $2,438 million)
and represents 95.0% of Group segment revenue
(excluding pass-through)
•
Underlying EBITDA increased 6.9% to $2,094 million
(FY24: $1,959 million) and represents 96.1% of Group
underlying EBITDA (before corporate costs)
East Coast Gas transmission and storage
Underlying EBITDA increased 6.3% to $711 million (FY24: $669
million), driven by inflation-linked revenues and increased
gas volumes on the Victorian Transmission System and
South West Queensland Pipeline. Additionally, APA received
insurance proceeds during the period relating to lost
revenue on the Moomba to Sydney Ethane Pipeline
following its single customer entering voluntary
administration in February 2023.
Wallumbilla Gladstone Pipeline (WGP)
Underlying EBITDA increased 4.0% to $683 million (FY24:
$657 million). The increase was due to US inflation-linked
tariff escalations and favourable foreign exchange rates
during the period.
West Coast Gas transmission and storage
Underlying EBITDA increased 5.2% to $365 million (FY24:
$347 million). The increase was driven by the full year
impact of the additional 11.8% ownership interest in the
Goldfields Gas Transmission Pipeline, and increase in
customer demand on the Northern Goldfields
Interconnect and Parmelia System.
Contracted Power Generation
Underlying EBITDA increased 19.7% to $298 million (FY24:
$249 million). The increase was driven by a full year
contribution from the Pilbara Energy System, tariff
escalations and insurance recoveries relating to lower
availability at North West Power System, partly offset by
higher maintenance costs at Badgingarra Wind and
Solar Farms, Emu Downs Wind and Solar Farms and
Darling Downs Solar Farm.
Electricity Transmission
Underlying EBITDA remained constant at $37 million (FY24:
$37 million). An increase in Basslink revenue was driven by
inflation-linked tariffs and increased availability charges
offset by an increase in business development costs.
Assets by business unit
East Coast Gas transmission and storage
•
South West Queensland Pipeline (SWQP)
•
Moomba Sydney Pipeline (MSP)
•
Moomba Sydney Ethane Pipeline (MSEP)
•
Victorian Transmission Systems
•
Roma Brisbane Pipeline (RBP)
•
Carpentaria Gas Pipeline
•
Kurri Kurri Lateral Pipeline (KKLP)
•
Other Queensland assets
•
Amadeus Gas Pipeline (NT)
•
SESA Pipeline and other SA assets
Wallumbilla Gladstone Pipeline (WGP)
1
West Coast Gas transmission and storage
•
Goldfields Gas Transmission Pipeline (GGTP)
•
Eastern Goldfields Pipeline
•
Mondarra Gas Storage and Processing Facility
•
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
FINANCIALS (CONTINUED)
50 APA GROUP FY25 ANNUAL REPORT
1 Wallumbilla Gladstone Pipeline is separated from East Coast Gas as a result of the significance of its revenue and EBITDA in the Group.
Revenue by sub-segment
EBITDA by sub-segment
FY25 Revenue analysis
Stable contracted revenue providing predictability and
cash flow support.
FY25 Energy Infrastructure by Revenue Type
Diversification of customers and industry exposures.
FY25 Energy Infrastructure Revenue by Customer Industry
Segment
FY25 ANNUAL REPORT APA GROUP 51
65%
18%
3%
13%
1%
Capacity charge revenue
Regulated revenue
Contracted fixed revenue
Throughput charge & other
variable revenue
Flexible short term services
45%
24%
28%
3%
Energy
Utility
Resources
Industrial & Others
~86%
Take or pay / regulated
Diverse
Source of revenue
1,707
1,793
1,959
2,094
East Coast Gas
Wallumbilla Gladstone Pipeline
West Coast Gas
Power Generation
Electricity Transmission
FY22
FY23
FY24
FY25
0
400
800
1,200
1,600
2,000
2,095
2,215
2,438
2,579
East Coast Gas
Wallumbilla Gladstone Pipeline
West Coast Gas
Power Generation
Electricity Transmission
FY22
FY23
FY24
FY25
0
500
1,000
1,500
2,000
2,500
Energy Infrastructure Revenue (excluding pass-through)
(A$m)
Energy Infrastructure EBITDA
(A$m)
Asset management
FY25 Performance
•
Segment revenue (excluding pass-through) decreased
5.9% to $111 million (FY24: $118 million) contributing 4.1% to
Group segment revenue (excluding pass-through).
Customer contributions for FY25 were $5 million (FY24:
$16 million).
•
Underlying EBITDA decreased 13.0% to $60 million (FY24:
$69 million) contributing 2.8% to Group underlying
EBITDA (before corporate costs).
•
The 13.0% decrease in Asset Management underlying
EBITDA was largely driven by lower recoverable works
mostly due to completion of major projects in the prior
year.
•
During the year, APA’s major third-party customers
were Australian Gas Networks Limited (AGN), Energy
Infrastructure Investments (EII) and GDI, who receive
asset management services under long-term
contracts.
Energy investments
FY25 Performance
•
Earnings are in line with prior year of $26 million (FY24: $26 million) contributing 0.9% to Group segment revenue
(excluding pass-through) and 1.2% to Group underlying EBITDA (before corporate costs).
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 Mortiake Power Station
MAINTENANCE
REST
SEA Gas Pipeline
50%
South East
Australia Gas
Pty Ltd
687 km gas pipeline from lona 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 Queensiand 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 2.5% to $165 million (FY24: $161 million), below inflation,
1 reflecting a stabilisation of costs and
progressed cost reduction initiatives.
FINANCIALS (CONTINUED)
52 APA GROUP FY25 ANNUAL REPORT
1 Inflation calculated as trimmed mean for year ended 30 June 2025 of 2.7%. Source: ABS (EHPIAUYOY).
964
2,711
Regulated growth capex
Non-regulated growth capex
SIB capex
Foundation capex
Acquisition growth capex
FY25
FY24
0
1,000
2,000
3,000
Capital management
APA Group’s objectives when managing capital are to balance growth in distributions to investors and investments to
create long-term value with funding via an efficient mix of debt and equity.
Securityholder returns
On 20 August 2025, the Directors announced a final distribution of 30.0 cents per security, taking APA’s FY25 total
distributions to 57.0 cents per security, in line with guidance. This represents an increase of 1.8%, or 1.0 cents, over the FY24
distributions of 56.0 cents per security. Refer to Note 8 in the Financial Statements for further details on Distributions.
To assist APA securityholders who wish to submit their annual tax return before receiving their annual APA Tax Statement
in mid-September, APA has an indicative online tax estimator tool, which is available on the Investor page on APA’s
website.
Capital expenditure
FY25 Capital and investment expenditure
Regulated growth capex
•
Western Outer Ring Main
•
Victorian Transmission System
Non-regulated growth capex
•
East Coast Gas Grid Expansion
•
Kurri Kurri Lateral Pipeline
•
Port Hedland Solar and Battery Projects
•
Basslink
SIB capex
•
Pipeline integrity works across the portfolio
•
Moomba Sydney Pipeline maintenance
•
Goldfields Gas Pipeline maintenance
•
North West Power System generator maintenance
Foundation capex
•
Technology investments
•
Emissions reduction programs
•
Real estate renewals
Acquisition growth capex
•
Atlas to Reedy Creek Pipeline
FY25 ANNUAL REPORT APA GROUP 53
(A$m)
Prospective projects
In FY25, APA progressed work on several other large
projects, including:
•
East Coast Gas Grid Expansion Plan - In FY25, APA
announced a five-year East Coast Gas Grid (ECGG)
Expansion Plan to deliver a ~24% increase in north-to-
south gas transport capacity
1 and new southern
markets storage
2 to help ensure lower cost and lower
emissions domestic gas
3 is available to meet east
coast gas demand and to support the delivery of new
gas-powered generation. The Expansion Plan’s initial
investment of ~$75 million over the next two years has
been committed, including ~$40 million to deliver two
enhancements to the ECGG that have reached Final
Investment Decision (FID).
•
The Moomba to Sydney Ethane Pipeline (MSEP)
conversion project, where APA will invest ~$25
million to deliver this project to provide an
additional ~20 TJ/day from Moomba to Victoria or
~25 TJ/day to Sydney. After conversion to natural
gas, the incremental MSEP capacity will increase
the total southbound capacity from Moomba to
Sydney from ~565 TJ/day to ~590 TJ/day.
•
The MSP off-peak capacity expansion project,
which will deliver two pressure regulation skids
to increase capacity in summer months when
pipeline maintenance is being undertaken. APA
will invest ~$15 million to deliver this project, with
new capacity to come online in summer 2025
and 2026. Total new MSP summer capacity on
completion will be ~80-120 TJ/day, delivering
additional earnings in off-peak months and
supporting storage refill ahead of peak winter
months.
•
Sturt Plateau Pipeline, Northern Territory - APA
executed a Development Agreement, long-term
Gas Transportation Agreement (GTA) and Connection
Agreement with Tamboran Resources Corporation
and Daly Waters Energy, LP for the Sturt Plateau Pipeline
(SPP) connection in the Northern Territory. Under the
agreements, APA will build, own and operate the
SPP to connect the Tamboran Resources-operated
Shenandoah South Pilot Project to the Amadeus Gas
Pipeline (AGP) in the Northern Territory. The pipeline
will be approximately 37 kilometres in length, with
construction targeted for completion in early 2026.
The development is subject to certain milestones being
met, including obtaining third-party approvals such as
a pipeline licence. Revenue will start being earned
under the Gas Transportation Agreement (GTA) upon
first receipt of gas from the Shenandoah South Pilot
Project for transportation to the AGP.
Access to capital
APA Group continues to target BBB/Baa2 investment grade
credit ratings. This provides sufficient flexibility to fund
organic growth and investment from internally generated
cash flows, debt funding and, where appropriate,
additional equity capital.
The capital structure of APA Group consists of cash
and cash equivalents, borrowings (including hybrid
subordinated capital securities) and equity attributable
to securityholders of APA. At 30 June 2025, APA had
1,304,487,508 securities on issue. This has increased, as
a consequence of the Distribution Reinvestment Plan,
from 1,283,352,928 at 30 June 2024.
Debt facilities
At 30 June 2025, APA had $13,350 million of drawn debt
(compared with $12,893 million at 30 June 2024), with an
additional $1,600 million of undrawn committed corporate
liquidity lines. Of the total drawn debt funding, $96 million is
secured funding from North Australian Infrastructure
Facility (NAIF) ($72 million) and the Australian Renewable
Energy Agency (ARENA) ($24 million). These are not
included in the APA core guarantor group; however, they
are included in APA's total debt obligations.
APA has issued long-term debt across a diverse range of
global debt capital markets, including Medium Term Notes
(MTN) in several currencies (Euro, Sterling and Japanese
Yen), United States 144A Notes / Reg S, and Australian dollar
syndicated bank loans. The debt portfolio has a broad
spread of maturities extending out to FY47 with an
average maturity of drawn debt of 6.6 years.
In September 2024, APA issued USD 1.25 billion (AUD 1,879
million) US144A / Reg S notes with 10 and 20 year maturities
and a bilateral 10 year term loan (AUD 300 million) that was
drawn down in March 2025. At the same time, a Note
Tender offer of the US144A notes maturing in March 2025
was conducted, with buy back acceptances of USD 612m
(AUD 860 million). The remaining USD 488m (AUD 684
million) were repaid at maturity in March 2025. In addition,
APA repaid £129 million (AUD 198 million) GBP MTN in
November 2024.
In June 2025, APA extended $1.75 billion of syndicated bank
loans, with original maturities of $500m in May 2027, $500m
in May 2029, and $750m in October 2030, to new maturities
of $1.0 billion in July 2031 and $750m in July 2032.
As at 30 June 2025, 100% (30 June 2024: 100%) of interest
obligations on gross borrowings was either hedged into or
issued at fixed interest rates extending out to FY47.
FINANCIALS (CONTINUED)
54 APA GROUP FY25 ANNUAL REPORT
1 24% total capacity increase based on increased capacity at Young, NSW, from which gas can be delivered to southern market demand centres in NSW and
Victoria, if plan delivered in full compared to existing capacity in APA’s gas network.
2 Proposed Stage 4 would add up to ~200TJ of storage that could be delivered as early as 2028, with the potential to expand to ~500 TJ in 2029, supporting the
need for more peaking gas-powered generation.
3 Frontier Economics, LNG Imports on End User Prices May, 2024 (commissioned by APA) https://www.apa.com.au/news/asx-and-media-releases/new-frontier-
economics-research-shows-imported-lng-will-be-significantly-more-expensive-than-domestic-gas / DomGas Alliance, Carbon Lifecycle of LNG and
Domestic Gas Supply, March 2009.
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 affirmed in November 2024.
•
Baa2 long-term corporate credit rating (outlook Stable)
assigned by Moody’s Investors Service (Moody’s) in April
2010, and last affirmed in September 2024.
APA calculates the Funds From Operations (FFO) to Interest
to be 2.9 times (FY24: 3.2 times) and FFO to Net Debt to be
10.4% for FY25 (FY24: 10.1%
1).
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, to meet anticipated funding
requirements.
APA manages liquidity risk by maintaining adequate cash
reserves and bank liquidity facilities, by monitoring and
forecasting cash flow and where possible, by arranging
liabilities with longer maturities to closely match its
underlying assets.
Diversity of funding sources and maturities
FY25 ANNUAL REPORT APA GROUP 55
1 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.
1,000
750
500
828
133
1,038
928
1,018
774
1,347
742
452
1,109
1,584
752
72
24
300
200
350
550
500
Syndicated Term Loan
EUR Hybrid¹
JPY MTN
EUR MTN
GBP MTN²
US144a³
NAIF
ARENA
Bilateral Term Loan
Corporate liquidity facilities
FY26
n.a
FY27
4.51%
FY28
5.29%
FY29
5.94%
FY30
4.48%
FY31
3.87%
FY32
4.87%
FY33
5.09%
FY34
6.56%
FY35
5.85%
FY36
4.24%
FY42
2.25%
FY45
7.02%
FY47
0.0%
250
500
750
1,000
1,250
1,500
1,750
2,000
Average
interest rate
annualised
Risks and opportunities
As a leading energy infrastructure business, we
recognise that effectively managing risks is essential
to delivering energy responsibly and ensuring our
long-term financial resilience.
Embracing
the energy transition
opportunity
Optimising
outcomes in an
increasingly regulated
and fluid environment
Futureproofing
APA with the right
capability and technology
56 APA GROUP FY25 ANNUAL REPORT
Image: Darling Downs Solar Farm, Qld
Risk governance
At APA, an integrated, proactive and balanced approach
to risk management is fundamental to enhancing our
resilience, driving sustainability, and generating long-term
value. By anticipating and understanding the risks and
opportunities within our evolving business environment,
we can effectively mitigate challenges and capitalise on
opportunities that deliver benefits to our stakeholders.
Risk appetite
Our Risk Appetite Statement is reviewed annually by the
Board to align with our organisational strategy. It defines
the level of risk we are willing to accept, tolerate, or avoid in
the pursuit of our strategic objectives. By establishing clear
thresholds for risk-taking, we ensure that our approach is
balanced and aligned with both our long-term growth
aspirations and our core purpose. This alignment also takes
into account the expectations of our stakeholders, ensuring
that risk management supports the delivery of value while
safeguarding the interests of all parties involved.
Risk metrics aligned to our risk appetite enable us to
monitor our position against our defined risk appetite.
These metrics are key indicators of how we are managing
risks across the business and how our performance aligns
with both financial and non-financial risk factors. The
metrics are also used as the basis for building and
monitoring action plans to establish when appropriate to
remain or return to accepted risk appetite.
Risk management framework
Our Risk Management Framework (RMF), approved by the
Board, provides a clear set of principles and processes to
guide how we identify, assess, mitigate and monitor risks
that may impact our operations, customers, stakeholders
and long-term strategic objectives.
The RMF enables us to identify both potential threats and
opportunities that could affect the business across a wide
range of areas, including operational efficiency, financial
stability, culture, safety, compliance with regulations, and
the resilience of our infrastructure. Furthermore, it acts as
our guardrails as we pursue new opportunities, helping to
ensure that we continue to grow sustainably and maintain
our competitive advantage in the energy sector.
Three Lines model
APA adopts a ‘Three Lines’ model for managing risks and
controls to promote the behaviours and decision-making
that underpin 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
Line 1 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 allows for independent assurance
by the third line Internal Audit team. Independent external
auditors provide assurance and report to the Board via
the Board Audit and Finance Committee. Additionally,
other third party audits will occur across a range of
disciplines.
BOARD: Accountable to stakeholders for organisational oversight
EXTERNAL
ASSURANCE
PROVIDERS
(External Audit,
Regulatory Audits,
Third Party Audits,
Advisory Reviews)
BOARD RISK MANAGEMENT COMMITTEE (RMC) /AUDIT AND FINANCE COMMITTEE
Delegates, directs, ensures adequate resourcing and provides oversight
EXECUTIVE RISK MANAGEMENT COMMITTEE
Accountable for risk and reporting to the Board RMC
MANAGEMENT
INTERNAL AUDIT
LINE ONE
Owns and manages risks
LINE TWO
Reviews and supports
LINE THREE
Independent assurance
Group Executives
Our People
Enterprise/Divisional Risk and
Compliance teams, HSEH,
Enterprise Security
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 and
support, monitoring and
challenging on risk and
compliance-related matters
•
Maintain and continuously
improve risk and compliance
management practices at
an enterprise/function,
system or process level
•
Report on the adequacy and
effectiveness of risk and
compliance management,
including HSEH and Security
•
Coordinate insurance
•
Maintain and implement
control assurance programs
at enterprise/function level
•
Provide independent and
objective assurance of
objectives
•
Ensure that governance
structures and processes
are appropriately
designed and operating
as intended
•
Provide oversight and
direction in aligning
governance activities,
including integrated
assurance
FY25 ANNUAL REPORT APA GROUP 57
Enterprise risks
Enterprise risks encompass the potential challenges and uncertainties that may impact APA's ability to achieve its
strategic objectives or sustain its operations.
Effective management of these risks is integral to ensuring APA's continued success and resilience in a dynamic
business environment.
#
APA's Enterprise Risk
Trend
Velocity
1
Residual Rating
2
Strategic Risks
1
Government / Regulatory Intervention
↓
Medium
High
2
Realising Growth Opportunities
←→
Medium
High
3
Social Licence
←→
Fast
High
4
Capability
←→
Slow
High
Operational Risks
5
Operational Disruption – physical and natural hazards
←→
Fast
High
6
Operational Disruption – cyber and technology
←→
Fast
High
7
Technology Enablement
←→
Medium
High
8
Safety - Process Safety, Physical and Psychosocial
←→
Fast
High
9
Climate
←→
Slow
High
10
Major Project Delivery
←→
Medium
High
1 Velocity, defined as the speed at which a risk may impact the organisation, adds another dimension. Risks may unfold
slowly (over a year), at medium pace (months to a year), or rapidly (within days or immediately).
2 The remaining risk after appropriate mitigations have been applied.
Enterprise Risk Heat Map
Risks are assessed on a five-point likelihood and impact matrix with residual risk rated negligible, low, moderate, high or
extreme. The impact scale considers risk across seven categories – Health and Safety; Environment, Heritage and Social;
Operations; People; Compliance; Reputation and Financial. We periodically review all risks and the enterprise-level risks
at least quarterly.
1. Minimal
2. Minor
3. Significant
4. Major
5. Catastrophic
5. Frequent
4. Occasional
4
3. Unlikely
1, 2, 3, 7, 9, 10
6
2. Remote
5, 8
1. Rare
RISKS AND OPPORTUNITIES (CONTINUED)
58 APA GROUP FY25 ANNUAL REPORT
Strategic risks
Strategic risks are uncertainties that could materially impact the business’s ability to implement its strategic objectives.
The Board Risk Management Committee regularly reviews strategic risks with periodic deep dives to test risk mitigation
actions.
Government /
Regulatory
Intervention
The risk of unfavourable regulatory intervention or
government policy
•
due to government or regulatory actions, which
disincentivise investment in energy infrastructure
or supply and use of gas. This includes
accelerated decarbonisation and energy pricing
control
•
resulting in constrained gas supply, restrictions
on commercial pricing for gas transmission or
otherwise increased compliance costs for APA
and its customers.
•
Maintain strong regulatory, policy and government
relations functions and be an active participant and
stakeholder in the development of regulation and
policy.
•
Continually assess and respond to key policy and rule
change proposals that have potential impacts on our
business, and advocate for our position on these
changes.
•
Actively engage with updating/developing relevant
Australian standards.
Realising Growth
Opportunities
The risk of insufficient revenue/profit growth from
gas pipeline and storage opportunities or failure to
expand into remote grid solutions and large scale
GPG
•
due to failure to convert opportunities, poor
customer experience, reduced gas demand/
supply, competition or uptake of alternative
power sources, inability to source commercial
financing for projects
•
resulting in failure to replace expiring contract
revenue (e.g. WGP) and finance our growth
ambitions.
•
Actively pursue new business opportunities in the gas
sector, remote grid and gas powered generation.
•
Strengthen partnerships and build enduring customer
relationships to enhance customer experience,
improve retention and maintain trust.
•
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.
•
Continue to invest in our capability in power
generation optimisation and asset development and
integration.
Social Licence
The risk of exclusion from commercial opportunities,
or material impediments to infrastructure
development aligned to APA’s growth strategy
•
due to ineffective management of sustainability,
environment, First Nations agreements, cultural
heritage and community requirements,
perceived or real green/blue washing, poor
safety and security standards
•
resulting in inability to execute on strategy, meet
customer and community needs, access finance,
and share price erosion.
•
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 Peoples.
•
Deliver against commitments detailed in our
Reconciliation Action Plan (RAP).
Capability
The risk that APA experiences a loss of key talent or
fails to attract, engage, develop and retain a
diverse pool of critical skills
•
due to a highly challenging recruitment market in
the evolving energy transition where supply of
new skillsets and capabilities is lower than
demand
•
resulting in an inability to deliver operational and
strategic objectives.
•
Execute effective talent programs to develop and
maintain talent pipelines.
•
Deliver comprehensive learning and development
programs, including leadership programs, to build the
skills and capability required now and for the future.
•
Implement inclusion and diversity programs to
improve diversity, employee experience, inclusion and
belonging.
Risk
Description
Managing the risk
FY25 ANNUAL REPORT APA GROUP 59
Operational risks
Operational risks potentially arise from weaknesses in internal processes or systems or from unforeseen external events.
The Board Risk Management Committee regularly reviews operational risks with periodic deep dives to test risk
mitigation actions.
Operational
Disruption – Physical
and Natural Hazards
The risk of a significant disruption to energy supply or
services
•
due to unexpected loss of key operational asset/s
natural disaster, activism, unforeseen engineering
failure (design, construction or operations) or major
third-party failure
•
resulting in APA’s inability to meet customer
demand/ expectations/ service levels and
reputational damage, and/or financial loss.
•
Implement comprehensive operational, integrity,
process safety, and environmental management
programs.
•
Embed mature emergency management and
business resilience processes to respond to
operational and natural hazard events.
•
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.
•
Implement asset operational monitoring through
control rooms to manage assets within design
parameters and coordinate asset maintenance
issues.
•
Establish comprehensive insurance arrangements
as part of the asset protection program.
Operational
Disruption –
Technology
The risk of security breach, critical technology assets
sustained outage or downtime, or data theft
•
due to increasing external threat landscape, partial
alignment to target security standards,
compromise or failure of a third-party supplier,
insider threat (intentional or not), unsupported
legacy technology, maturing disaster recovery, and
incident management processes
•
resulting in business interruption to customers and
community, regulatory penalties, reputational
damage, financial loss and inability to retain
existing or attract new customers.
•
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.
•
Continue to strengthen the security of APA assets,
cater for emerging threats, security regulation and
stakeholder expectations.
•
Maintain robust security monitoring and incident
response processes supported by regular exercises
and security control assurance programs.
•
Continue 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.
Safety - Process
Safety, Physical and
Psychosocial
The risk of fatalities, serious injury, illness or
occupational incidents to people (workers, customers
and community)
•
due to process safety failures, failure to provide
safe systems of work, including safe environments,
safe plant and/or adequate information, instruction
and training
•
resulting in regulatory attention or prosecution,
increasing workers compensation costs and
reputational damage as a partner of choice for
both customers and our social licence.
•
APA Board's 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, training and processes.
•
Report key performance metrics that are in place to
monitor safe behaviours and identify continuous
improvement opportunities.
Risk
Description
Managing the risk
RISKS AND OPPORTUNITIES (CONTINUED)
60 APA GROUP FY25 ANNUAL REPORT
Climate
The risk that APA does not meet climate-related
stakeholder expectations (pathway to net zero)
•
due to perceived inadequate ambitions, failure to
demonstrate delivery, inaccurate reporting or
insufficient transition risk analysis and response
•
resulting in stakeholder activism (including
shareholders and proxy advisors), reputational
damage, costs to bring forward activities, poor ESG
market ratings and potential loss of customers.
•
APA’s Board Safety and Sustainability Committee,
has oversight of this risk.
•
APA’s strategic intent and commitments to climate
change and the transition to a net zero economy
are defined in APA’s Climate Policy.
•
Reviewed APA’s 2022 Climate Transition Plan (CTP)
and developed a refreshed CTP in 2025. Continue to
drive transparent and proactive annual disclosures.
•
APA’s Climate Change Management Framework
details the overarching approach to emissions
management and embeds achievement of APA’s
climate-related goals in strategic planning and
business operations.
Major Project Delivery
The risk of material delays and unrecoverable cost
overruns on construction projects
•
due to failure to understand customer needs, poor
risk transfer or allocation in commercial
agreements, failures in technical design or delivery,
poor project management, supply chain capability
and capacity, management of interfaces between
stakeholders, construction execution, management
of latent conditions and execution risks
•
resulting in financial losses, unfavourable balance
sheet impacts, disruption to customers and
reputational impacts.
•
Manage the efficient, safe and quality delivery
through dedicated project management and
governance.
•
Use enterprise-wide strategic procurement and
supply chain management.
•
Ensure dedicated access and approvals
management for new construction projects.
•
Maintain enterprise-wide contracting strategies
that enable risk allocation and cost sharing with
contractors and customers where possible.
Risk
Description
Managing the risk
Emerging risks and opportunities
The Board Risk Management Committee also has oversight of emerging risks and opportunities that have the potential
to impact the business and are highly uncertain by nature:
Emerging risk
Risk or opportunity
Difficulty in attracting newer-generation talent
Risk
Severe commodity shocks – shortage of stainless steel, attributed to the industrial transition towards
renewable energy
Risk
Global economic slowdown
Risk
Geopolitical uncertainty
Risk
Access to Capital – stronger restrictions (industry-wide) on fossil fuel-related projects by financial
institutions
Risk
Quantum technology coupled with machine learning offers transformative potential in future energy
Opportunity
Advancements in quantum computing accelerating technology security risks
Risk
Advancements in artificial intelligence, maintaining competitiveness and new security requirements
Opportunity
FY25 ANNUAL REPORT APA GROUP 61
Outlook
Based on current available information, Underlying
EBITDA
1 guidance of $2,120 million to $2,200 million
is being provided for FY26.
The FY26 distribution is expected to be 58.0 cents per security, an increase of 1.8% on FY25. The level of growth in
distribution reflects APA’s disciplined approach to capital management, which balances distributions 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 Risks and opportunities for detail of APA Group’s approach to managing material risks, opportunities and
emerging risks. For broader industry trends, see the Our external environment.
1 Disclaimer: Underlying EBITDA and distribution guidance are subject to asset performance, macroeconomic factors and regulatory changes. In particular,
Basslink is expected to be traded as an uncontracted market provider during the reporting period and earnings associated with that asset may be subject to
potentially material variability and fluctuations. Guidance is not a predictor or guarantee of future performance and is subject to uncertainties and risks.
62 APA GROUP FY25 ANNUAL REPORT
Image: Diamantina Power Station, Qld
FY25 ANNUAL REPORT APA GROUP 63
Governance
Robust corporate governance is fundamental to
our ability to responsibly create long-term value
for our securityholders. Our disciplined policies
and practices help us meet the expectations of
our stakeholders.
64 APA GROUP FY25 ANNUAL REPORT
Image: Mondarra Gas Storage and Processing Facility, WA
Corporate governance
At APA, our governance frameworks are
critical to delivering on our strategy.
The role of our Board
The Board of APA is responsible for the 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
Our Corporate Governance Framework
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)
that 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 2025 Corporate Governance Statement provides
further information about our approach to governance
during FY25.
Board skills matrix
The Board has adopted a graded reporting style for the
Board skills matrix whereby Directors assess their
competency against each skill according to a rating of
High, Practiced and Awareness. The Board skills matrix in
APA’s 2025 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 FY25. 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. Key focus areas are identified in
the Performance section aligned with each value driver,
from page 26.
Our Corporate Governance Framework
Board
Audit and Finance
Committee
Risk Management
Committee
Safety and
Sustainability
Committee
People and
Remuneration
Committee
Nomination
Committee
Chief Executive Officer and Managing Director
Executive Leadership Team
FY25 ANNUAL REPORT APA GROUP 65
Image caption: Wallumbilla Gas Hub QLD
Our Board
Michael Fraser
BCom FCPA MAICD
Independent Chairman
Director since:
1 September 2015
Chairman since:
27 October 2017
Michael Fraser is the Chairman of APA Group and brings to the Board more
than 40 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. Michael 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
and 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.
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.
Varya Davidson
LLB (Hons), BSc, MBA
Independent Director
Appointed:
1 March 2025
Varya Davidson brings to the Board almost 30 years of local and
international experience working in the energy, gas and resources sectors.
Varya has held senior executive roles at PwC Australia and globally involving
delivering innovation and growth in complex businesses, including energy
transition and sustainability. She also has significant experience advising
boards and executive teams on strategy, culture and transformation. Prior
to becoming a Non-Executive Director, Varya spent 17 years as a Partner at
Strategy& (part of the PwC network).
Varya is a member of the Safety and Sustainability Committee, the People
and Remuneration Committee and the Nomination Committee.
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 Rabobank
Australia Limited, and a Director of Amotiv Limited and Qube Holdings
Limited. He was formerly the Chairman of Tassal Group Limited and Osteon
Medical.
James is Chair of the Safety and Sustainability Committee, and a member of
the Audit and Finance Committee, Risk Management Committee and the
Nomination Committee.
GOVERNANCE (CONTINUED)
66 APA GROUP FY25 ANNUAL REPORT
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 to 2019.
Nino is currently a Director of the Australian Energy Market Operator (AEMO),
Co-Founder and Adviser of TasRex and a Member of Deakin University
Council. He is a former Director and Chair of Energy Networks Association,
and former Director of CIGRE Australia and Transurban Queensland Group.
Nino is a member of the People and Remuneration Committee, the Safety
and Sustainability Committee, the Risk Management Committee, and the
Nomination Committee.
David Lamont
BComm, CA
Independent Director
Appointed:
1 October 2024
David Lamont brings to the Board experience across a range of industries,
including mining, resources and manufacturing as a senior executive.
David was BHP’s Chief Financial Officer from 2020 to 2024 with responsibility
for overseeing Group Reporting, Tax, Treasury, Investor Relations, Risk and
Internal Audit teams. David had previously held senior roles at BHP between
2001 and 2006, including Chief Financial Officer of its Carbon Steel Materials
and Energy Coal businesses.
Prior to re-joining BHP in December 2020, David was the Chief Financial
Officer of ASX-listed global biotech company CSL Limited and had also
served in similar roles at Minerals and Metals Group, OZ Minerals Limited,
PaperlinX Limited and Incitec Pivot Limited.
David is a Director of Telstra Group Limited and the Geelong Cats Foundation
Pty Ltd, and is President of the Financial Executives Institute of Australia.
David is Chair of the People and Remuneration Committee and a member of
the Safety and Sustainability Committee, Audit and Finance Committee, and
Nomination Committee.
Samantha (Sam) Lewis
BA (Hons) EC, CA, ACA,
GAICD
Independent Director
Appointed:
1 October 2024
Sam Lewis brings to the Board significant experience as a non-executive
director having served on both ASX-listed and unlisted companies across a
broad range of industries.
Sam is a chartered accountant with extensive experience in accounting,
finance, auditing, risk management, corporate governance, capital markets
and due diligence. Prior to becoming a Non-Executive Director, Sam spent 24
years at Deloitte, including 14 years as a Partner.
Sam is currently a Director of CSL Limited and Australian Pacific Airports
Corporation. She was formerly a Director of Aurizon Holdings Limited, Nine
Entertainment Co. Holdings Limited and Orora Limited.
Sam is Chair of the Audit and Finance Committee, and a member of the Risk
Management Committee and the Nomination Committee.
Rhoda Phillippo
MSc Telecommunications
Business, FAICD
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 has significant experience in managing technology and
cybersecurity, and infrastructure mergers and acquisitions in Australia and
overseas.
Rhoda is currently a Director with Dexus Funds Management Ltd and
Waveconn Group Holdings Management Pty Ltd.
She was formerly a Director and Chair of Kinetic IT Pty Ltd, 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 and Finance Committee, the People and Remuneration Committee
and the Nomination Committee.
FY25 ANNUAL REPORT APA GROUP 67
Our Executive Leadership
Petrea Bradford
BEng GAICD
Group Executive
Operations
Petrea Bradford joined APA Group in August 2023 as Group Executive
Operations and 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 in 2012
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.
Rob Evans
BSc (Hons) MEng CEng
FICE CPEng FIEAust
EngExec
Group Executive
Infrastructure Delivery
Rob Evans joined APA Group as Group Executive, Infrastructure Delivery in
June 2025.
Rob is responsible for delivering growth infrastructure projects, including
planning, approvals, engineering, procurement, construction and
commissioning.
He has more than 30 years’ experience delivering complex major projects
across a range of sectors in Australia, the UK and New Zealand, including in
oil and gas, utility pipelines, power generation, renewable energy and
electricity transmission.
Prior to APA Group, Rob held executive roles at John Holland, and at other
major contracting and infrastructure organisations, including Lendlease,
Thiess and Transfield Services.
Beth Griggs
BA LLB GAICD
Group Executive Strategy
and Corporate
Development
Beth Griggs joined APA Group in 2023 and was appointed Group Executive,
Strategy and Corporate Development in October 2024.
Beth is a highly skilled energy executive with over 20 years’ experience
across gas and electricity infrastructure, wholesale and retail markets. Beth
has held senior roles leading teams to manage complex legal, regulatory,
competition, acquisition, pricing and government issues.
Beth is responsible for APA Group’s strategy, market analytics, corporate
development, and regulation and policy functions.
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 division.
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, fast moving consumer goods 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 sustainability, government and industry relations, communications,
company reporting and brand functions.
GOVERNANCE (CONTINUED)
68 APA GROUP FY25 ANNUAL REPORT
Darren Rogers
BEng MEng MBA GAICD
Group Executive Energy
Solutions
Darren Rogers is responsible for APA Group’s customer, business
development and commercial functions.
Darren has almost 30 years’ 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, procurement, real
estate, and enterprise project management 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) MAICD Fellow AHRI
Group Executive People,
Safety and Culture
Jane Thomas leads the People, Safety and Culture function for APA Group.
With 30 years of experience, Jane has held senior executive positions in
major ASX-listed companies and global multinationals across various
sectors, including energy, mining, banking and finance, retail and
manufacturing. She has successfully led large-scale cultural and
operational transformations with expertise in aligning people and culture
with business objectives, coaching senior leaders and cultivating high-
performing and inclusive workplaces.
Jane holds degrees and postgraduate qualifications in business, law,
leadership and organisational coaching psychology, and has experience in
managing people, safety, environment, community and legal functions
throughout her career.
FY25 ANNUAL REPORT APA GROUP 69
Cyber security governance
As Australia’s energy infrastructure partner, APA recognises
cyber security as a core operational risk with potential
impacts for our people, assets, customers, operations and
the broader community.
APA’s cyber governance framework, established under the
Enterprise Security Policy, defines the principles and
responsibilities for managing security risks and aims to
support a secure, resilient and compliant operating
environment. We acknowledge that cyber risk is a dynamic
and persistent challenge. Accordingly, we are focused on
response readiness to enable actions against threats.
Cyber risk responsibilities at APA are structured under the
Three Lines model, ensuring accountabilities and assurance
across the organisation. The Head of Cyber leads APA’s
cybersecurity strategy, governance, risk and compliance,
awareness and is supported by the Chief Information
Officer (CIO), who drives first-line controls across the
technology function.
Clear Board oversight
Both roles report quarterly to the Enterprise Risk
Management Committee and the Board Risk Management
Committee with standing agenda items enabling Board
oversight. The Board skills matrix ensures appropriate cyber
governance knowledge.
Cyber risk management and reporting
APA’s Enterprise Risk Management Framework is aligned to
ISO 31000:2018 and the ASX Corporate Governance
Principles. It includes coverage of operational technology
(OT) and cybersecurity risks, with processes defined for their
identification, assessment and management.
APA’s Cyber Incident Response Plan (CIRP) is reviewed
biennially to ensure alignment with business recovery, crisis
and emergency management, disaster recovery, continuity
planning, and regulatory obligations. Cyber incident
response exercises are conducted across both technical
and management teams, with active participation in
sector-based initiatives. Specific threat playbooks, including
for privacy breaches and ransomware, are tested through
tabletop exercises.
Security incidents are reported via the Technology Service
Desk or Operations Control Rooms. Email threats are
flagged digitally by team members and triaged by Cyber
Defence team staff. Escalation procedures are defined in
the Group Business Recovery Policy and tested across all
organisational levels, including the Board.
APA employs a range of security measures designed to
ready, protect, detect, respond and recover from potential
attacks. These include:
•
24/7 Security Operations Centre (SOC) providing visibility
across IT and OT environments
•
Enterprise Detection and Response (EDR) tools with
threat intelligence to enable threat monitoring
•
mandatory annual cybersecurity training for all APA
personnel and contractors, including the Board, with
completion monitored, reported and linked to staff
performance incentives
•
third-party cyber risk managed through APA’s Third-
Party Security Assessment process, which assesses
vendor security posture and recommends controls
where needed.
Dedicated cyber crisis prevention program
APA conducts intrusion testing as part of its annual control
assurance program, using internal specialists and external
partners to validate security controls and identify
vulnerabilities. Security testing and audit activities include:
•
internal audits of cyber controls and compliance
•
periodic external assessments, including Australian
Energy Sector Cyber Security Framework (AESCSF) and
SOCI audits
•
penetration testing of critical and public-facing
systems
•
vulnerability scanning to identify and remediate
weaknesses.
APA maintains and tests recovery plans for its systems,
outlining restoration objectives and criticality.
APA is externally assessed against the AESCSF Version 2,
Security Profile 1 (SP1). This framework, developed by AEMO
and the Australian Government, provides a sector-specific
benchmark for assessing cybersecurity maturity.
APA actively collaborates with government and regulatory
bodies, including the Australian Cyber Security Centre
(ACSC), Department of Home Affairs, law enforcement,
and state and territory agencies. APA engages in sector
forums led by AEMO and the Department of Home Affairs,
supporting threat intelligence sharing and coordinated
cyber response planning.
APA has not experienced a priority 1 cyber security incident
in the past three years.
GOVERNANCE (CONTINUED)
70 APA GROUP FY25 ANNUAL REPORT
Ethics and integrity
Governance policies
We have a number of policies governing ethics and
integrity at APA. These 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, inclusion and diversity, human
rights, community engagement, environmental
protection, data privacy and security, and prevent
discrimination, bullying, harassment, corruption and
anti-competitive behaviour.
•
Inclusion and Diversity Policy: Our commitment 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 both respect the past and protect its
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.
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 Hotline through an externally
managed disclosure service as an independent, impartial
and confidential means of reporting potential incidents.
Through the Whistleblower Hotline 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.
Promoting awareness of the Whistleblower Policy and the
independent hotline continued throughout FY25. There
were six notifications received through the Whistleblower
Hotline, and all were investigated in accordance with our
Policy. All reports were found to be unsubstantiated or not
related to reportable conduct.
We recorded zero incidents of fraud, bribery or corruption
in FY25 and received no fines for non-compliance with any
laws or regulations related to bribery or corruption.
We do not tolerate any form of discrimination,
harassment, bullying or other exclusionary behaviour. In
FY25, we recorded one substantiated incident of
harassment and exited the employee.
All alleged incidents were fully investigated and, where
substantiated, disciplinary outcomes applied. The Board
Risk Management Committee was informed of all
substantiated incidents and outcomes.
For more information, refer to our FY25 Sustainability Data
Book.
Bribery and corruption
We maintain a Fraud Prevention Program that includes
bribery and corruption risk assessments and annual staff
training. We operate robust financial oversight and
employ a number of detection processes to manage
fraud, bribery and corruption risks.
FY25 ANNUAL REPORT APA GROUP 71
Political donations
In FY25, APA was 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 Political Donations and Sponsorship Policy and
Anti-Bribery and Corruption Policy.
Our expenditure on political memberships can be viewed
in the 2025 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 to contribute to the
enhancement of industry standards through the
exchange of best-practice learning and development.
FY25 associations
•
Australian Climate Leaders Coalition
•
Australian Hydrogen Council
•
Australian Pipeline and Gas Association
•
Bell Bay Advanced Manufacturing Zone
•
Bioenergy Australia
•
Business Council of Australia
•
Council for Economic Development of Australia
•
Chamber of Minerals and Energy of Western Australia
•
Queensland Resources Council
•
Champions of Change Coalition
•
Clean Energy Council
•
Diversity Council of Australia
•
Energy Club NT
•
Energy Networks Australia
•
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
•
Regulatory Policy Institute
•
South Australian H2 Hub
•
Tasmanian Chamber of Commerce and Industry
•
Victorian Chamber of Commerce and Industry
•
WORK180
We review all memberships annually to ensure they align
with APA's Climate Policy. In the event of misalignment, the
matter will be reported to APA’s Policy Committee with a
recommendation on action to take with the relevant
organisation. APA's Policy Committee is an Executive-led
committee that meets monthly to review current and new
policy settings and their implications for the business.
FY25 signatories
•
United Nations Global Compact
•
Methane Guiding Principles
GOVERNANCE (CONTINUED)
72 APA GROUP FY25 ANNUAL REPORT
Climate Report
Aligned with our strategy, we are playing our
part in Australia's energy transition – delivering
reliable, affordable, lower emissions energy for
our customers, while continuing to decarbonise
our operations.
Refreshing
our CTP integrated
with our strategy
Launching
our enhanced methane
measurement disclosures
Futureproofing
the climate resilience
of APA's business
FY25 ANNUAL REPORT APA GROUP 73
Image: Emu Downs Wind Farm, WA
FY25 progress highlights
In FY25, we continued to deliver against our 2022 Climate Transition Plan (CTP) and
further embed climate considerations into our organisation, strengthening our enhanced
methane measurement and reporting. Achievements and lessons learned in FY25 are set out
in this report with overall progress and future plans addressed within our refreshed 2025 CTP.
Our FY25 progress highlights
2030 TARGET
Reduce gas infrastructure operational emissions by
30% (FY21 base year)
1
6.5%
gross emissions
reduction compared
to FY21
13.3%
net reduction
(including offsets) compared
to FY21
22.3%
underlying emissions
reduction
1 compared to FY21
We have:
•
implemented compressor fuel gas optimisation models
to achieve fuel gas reductions
•
procured 100% renewable electricity by surrendering
large-scale generation certificates (LGCs)
2
•
refined our emissions reduction roadmap, with a
pipeline of abatement initiatives established
•
gained further insight into commercial challenges
related to compressor electrification, reaching a
decision not to proceed with Wallumbilla compressor
electrification
3
•
assessed biomethane options for Wallumbilla
4
•
commissioned an electric motor drive compressor
station for the Kurri Kurri Lateral Pipeline Project.
2030 TARGET
Reduce operational methane emissions by
at least 30% (FY21 base year)
3.9% decrease (with currently non-
reportable abatement)
compared to FY21
3.1%
increase based on regulatory
reporting methods compared
to FY21
We have:
•
developed an enhanced methane reporting method
informed by international frameworks
•
delivered enhanced methane measurements at our
Mondarra Gas Storage and Processing Facility, Eastern
Goldfields Gas Pipeline and South West Queensland
Pipeline
5
•
assessed all valves with high-bleed controllers
and commenced upgrades and planning for
the remainder to be upgraded by FY27
•
achieved methane abatement through valve
and compressor seal upgrades and compressor fuel
efficiency
•
completed engineering studies and delivery planning
for compressor methane recovery.
2030 GOAL
Reduce power generation infrastructure
operational emissions intensity by 35%
(FY21 base year)
11.6%
decrease compared to FY21
We have:
•
continued developing our 1 GW+ renewables pipeline in
the Pilbara, commissioning the Port Hedland Solar
and Battery Project
•
implemented optimisation projects at our Diamantina
Power Station.
CLIMATE REPORT (CONTINUED)
74 APA GROUP FY25 ANNUAL REPORT
1 Refers to operational emissions, which excludes emissions from growth investments, e.g. the East Coast Gas Grid expansion stages 1 and 2, Kurri Kurri Lateral
Pipeline and the Northern Goldfields Interconnect in FY21-FY25, but include non-reportable methane abatement and offsets.
2 Addresses Scope 2 and Scope 3 category 3 emissions due to grid-consumed electricity across operations within APA's operational emissions boundary.
3 Decision taken not to proceed with Wallumbilla compressor electrification due to it being very commercially challenging.
4 A feasibility study determined that operational and commercial risks were too high to support reliance on a greenfield biomethane project.
5 Enhanced methane measurement results are disclosed on these assets in this report and in our FY25 Sustainability Data Book.
OTHER GOALS AND SUPPORTING ACTIONS
Electricity transmission
• Developed a guideline to minimise emissions
from new infrastructure
• APA priority project status to deliver electricity
transmission in two priority electricity transmission
corridors in the Pilbara
Investment in future fuels and technologies
•
Investigated how APA’s network could support
connecting hard-to-abate industries with existing
or planned CO2 storage facilities
•
Completed the Parmelia Gas Pipeline conversion
project feasibility study in Western Australia
•
Undertook biomethane opportunity research
Scope 3
•
Established medium-term Scope 3 goals and a long-
term ambition, and identified pathways to our
medium-term goals
•
Addressed our business travel emissions through
surrendering voluntary offsets
100% zero direct emissions fleet goal
• Goal retired based on our reassessment of the
availability of suitable electric vehicles and charging
infrastructure
Climate risks and opportunities
• Completed transition risk and opportunity analysis
across our portfolio of assets, including quantitative
modelling of key assets across our East Coast Gas,
West Coast Gas and Power Generation business units
• Completed additional physical climate risk
assessments on three assets in the Pilbara region
Data management and disclosures
• Commissioned our new emissions data reporting
platform and commenced preparation for FY26
mandatory climate-related financial disclosures
Investing in our net zero goal
• Invested in renewable energy, battery storage and
electricity transmission
• Expended $25m on abatement initiatives, methane
measurement, offsets and related APA project
development and program management
• Updated our internal carbon pricing approach and
disclosed a long-term price
.Investor engagement and Climate Transition Plan
•
Engaged extensively with securityholders holding 158
meetings in FY25
•
Developed our refreshed 2025 CTP
FY25 ANNUAL REPORT APA GROUP 75
Image : Wallumbilla Gas Hub, Qld
Strategy
APA is committed to playing our part in the transition
to a lower emissions and climate resilient Australian
economy, and is taking the necessary steps to
understand how we can best respond to the risks
and opportunities inherent in this transition.
Our Climate Policy establishes APA's strategic position to
inform our approach to addressing the global challenge
of climate change and the transition to a net zero
economy. Our commitments include our ambition to
achieve net zero operational (Scope 1 and Scope 2)
emissions by 2050, developing and maintaining a CTP,
setting interim targets and goals, and integrating our CTP,
climate-related risks and opportunities into our business
strategy, processes and decision-making.
Our CTP
Our CTP is aligned to our strategy to support Australia's
energy transition through investment in gas transmission
and storage, contracted power generation, electricity
transmission and future energy. It sets out our climate-
related targets, goals and actions that shape our role in
Australia's energy transition, and guides our approach as
we pursue our net zero ambition and address climate-
related risks and opportunities.
1
Our 2025 CTP represents the first refresh of APA's initial CTP
published in August 2022. In FY23 and FY24 we reported
progress against our 2022 CTP in our annual Climate
Reporting suite. In FY25, we integrate our annual Climate
Report within the APA Annual Report in preparation for
mandatory reporting under the Australian Sustainability
Reporting Standards commencing in FY26. This report
focuses on delivery against our 2022 CTP, with reporting
on our 2025 CTP to commence in FY26 reporting.
Delivering on our commitments
Our achievements in FY25 are highlighted in this report,
with overall progress across FY23-FY25 reported within
our 2025 CTP. All actions due to be delivered by FY25
have been addressed.
We have embedded decarbonisation plans into our
organisation and have progressed towards our 2030
targets and goals through understanding and seeking to
reduce our operational emissions. We delivered emissions
reductions, while growing our operations to support the
needs of our customers and Australian energy users
more broadly.
We uplifted our sustainability governance, introduced
climate KPIs and incentives, built up internal capability
and resourcing, delivered targeted technical studies,
enhanced our emissions data and commenced
comprehensive reporting. To inform the development of
our Scope 3 goals and ambition, we identified emissions
reduction opportunities and engaged with our customers,
suppliers and the operators of our assets.
Through our climate risk and opportunity assessments, we
have enhanced our understanding of the exposure and
resilience of our assets to physical and transition risks, and
identified and addressed opportunities to protect the
resilience of our business.
Our refreshed CTP
Our 2025 CTP addresses APA's role in Australia's energy
transition and sets out our targets, goals and focus
areas for addressing our operational emissions and
supporting our value chain to decarbonise. It also reflects
our continued focus on governance, climate policy
advocacy and protecting the resilience of our business.
Lessons learned and shifts in APA’s role, operating context
and securityholder feedback have helped shape our
approach. While we have adjusted and refined some of
our earlier commitments, our headline 2030 commitments
for operational emissions remain the same. Our ongoing
operational (Scope 1 and Scope 2) emission reduction
targets and goals for 2030 cover 93% of our operational
emissions.
2
Our gas transmission and storage infrastructure, including
associated infrastructure, will be critical in getting gas to
where it is needed, including for flexible gas-powered
generation (GPG) to underpin the renewables build-out.
We support our remote customers’ energy transition and
decarbonisation efforts through our ability to develop and
operate bundled solutions spanning renewables, natural
gas and battery firming and electricity transmission. APA
intends to continue investing in core gas infrastructure
assets including associated infrastructure to support both
our customers and Australia's energy transition.
We also continue to invest in the delivery of future energy
solutions for our customers. Our 2025 CTP introduces
metrics to track aspects of Australia's energy transition to
contextualise APA's role in helping to enable emissions
reductions in the broader economy.
Our pipeline of abatement projects support progress
towards our 2030 operational gas infrastructure and
methane targets, even as we grow our gas assets to
support our customers and Australia's decarbonisation
pathways. We continue to pursue our power generation
operational emissions intensity reduction goal by investing
in renewables supported by battery storage and GPG.
We recognise that emerging growth opportunities to
deliver contracted flexible GPG to support Australia's
energy transition may mean a reduced decline in our
power generation emissions intensity as we contribute to
decarbonisation by customers and within the
broader economy.
Acknowledging our commitment to develop a Scope 3
goal, we have defined our long-term ambition and
medium-term goals and set out actions towards these
goals within our 2025 CTP. We will engage and work with
our customers, suppliers and the operators of the assets
we invest in to advance towards these goals. Our Scope 3
categories with medium-term goals (i.e. Categories 1, 2
and 15) cover about 60% of our total Scope 3 emissions
across both upstream and downstream emissions.
Due to the nature of our Scope 3 emissions, the
achievement of our goals remain dependent on the
decisions and actions of third parties, as well as other risks
and contingencies as addressed in our 2025 CTP.
CLIMATE REPORT (CONTINUED)
76 APA GROUP FY25 ANNUAL REPORT
1 We set targets where there is one or more identified pathway to deliver the intended outcome (subject to certain assumptions or conditions), and goals where
we state an ambition to seek an outcome. While we have not identified pathways to achieve goals, efforts are being pursued towards addressing the relevant
challenge (subject to certain assumptions or conditions).
2 The balance of emissions, which are not covered relate to line losses from existing electricity transmission infrastructure. These emissions are largely
determined by the rate of electricity grid decarbonisation, not by direct APA intervention.
APA's 2022 CTP
APA's 2022 CTP commitments have guided our actions on climate over the last three years and lay a strong foundation
for future progress.
Goals
• Gas infrastructure – net zero operational emissions by 2050
1
• Power generation and electricity transmission infrastructure – net zero operational emissions
2 by 2040
3
Interim targets/goals for 2030
4
Targets
30% emissions reduction for gas
infrastructure (FY21 base year)
Goal
35% reduction in emissions intensity for power
generation (FY21 base year)
Targets
100% renewable electricity procurement
from FY23 onwards
Goal
Contribute positively to grid decarbonisation
measured by MW of enabled renewable
infrastructure
Targets
30% methane reduction target (FY21 base
year)
Goal
100% zero direct emission fleet
5
Supporting
actions:
Responsible criteria
6 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
Key supporting actions
Incorporation of
the Methane
Guiding Principles
Hold a non-binding
securityholder vote
every three years to
align with major
updates to our Climate
Transition Plan
Report annually on
progress against the
targets, goals and
commitments in our
Climate Transition Plan
Link executive
remuneration to
climate-related
performance
from FY23
Scope 3 emissions
goal to be finalised
before or in conjunction
with our next Climate
Transition Plan
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.
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 FY25 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.
FY25 ANNUAL REPORT APA GROUP 77
Engaging our securityholders
In FY25, we engaged extensively with our securityholders
on climate-related matters, including the development
of our refreshed CTP, with 158 meetings held.
This engagement helped us to understand our
securityholders' perspectives. We also provided our
perspectives on our progress, APA's role in Australia's
energy transition and the evolving regulatory landscapes,
including mandatory climate-related financial disclosure
requirements, and other key aspects related to the refresh
of our CTP. During our engagement, we also received
positive feedback on the progress we have made in
enhancing our disclosures, particularly in the areas of
methane emissions and actions, Scope 3 emissions,
carbon pricing, offsets and physical climate risk
assessments. Feedback received and our response are
detailed in our 2025 CTP.
We will hold a non-binding securityholder vote on our
2025 CTP at our 2025 Annual Meeting.
Our approach to climate-related disclosures
APA's disclosure approach aims to align with the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), which address strategy, risk
management, governance and metrics and targets. APA's
FY25 Sustainability Data Book TCFD section provides a full
index of APA's response to the TCFD disclosure
recommendations within the APA Annual Report, 2025 CTP,
FY25 Sustainability Data Book and other disclosures.
We also considered the Australian Accounting Standards
Board S2 Climate-related Disclosures (AASB S2) to
enhance our disclosure practices this year, in preparation
for our mandatory reporting commencing in FY26.
Investing in our net zero goal
In FY25, APA continued to invest in delivering our CTP
commitments, while remaining financially disciplined in
how we allocated capital to growth and emissions
reduction projects.
Considering climate in capital allocation
APA’s major capital investment approvals process
includes screening against APA’s CTP and applying the
internal carbon price to assess relevant carbon-related
costs.
Investing to progress to our targets and goals
APA’s investment in renewable energy and battery storage
supports progress towards our emissions intensity goal
for power generation as well as supporting our customers’
decarbonisation plans. Progress towards our power
generation goals continues to be predominantly
investment-led, funded by growth capital with expenditure
announced at the time of Final Investment Decision on
each individual project. We forecast a cumulative
investment of $1.3 billion over FY23-FY28 in growth capital
for power generation. In FY25, we invested around $117
million in growth capital for power generation.
Decarbonisation activities to address commitments within
our CTP are costed and addressed within our budget
planning. In our 2022 CTP, 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 LGCs.
This did not include operational and capital costs
associated with enhanced methane measurement,
increases in capital costs for the Wallumbilla compressor
electrification initiative, or corporate and offset project
delivery costs.
In our Climate Report 2024, we identified an increase in
the order of $100 million would be required for our gas
infrastructure emissions reduction initiatives for FY23-FY30,
due to increases in capital costs for the Wallumbilla
compressor electrification initiative and costs associated
with enhanced methane measurement. A revised
investment forecast is provided in our 2025 CTP, informed
by updated pathways analysis and comprehensive
assessments of the costs and benefits associated with
our abatement initiatives and enhanced methane
measurements. The revised forecast includes provision for
corporate and offset project delivery and investment costs.
Our revised cumulative cost to implement gas
infrastructure emissions reduction initiatives over FY23-
FY30 (including the corporate and offset project delivery
and investment costs not included in the estimate within
our 2022 CTP) is forecast to be around $280 million. This
includes $44 million already expended over FY23-FY25.
Forecast costs for future years to FY30 are subject to
further work to refine the costs estimates for other
abatement opportunities, such as those in pre-concept
project development stages.
In FY25, we spent approximately $25 million, including $16
million as capital and $9 million as operating expenditure
on abatement initiatives, methane measurement, offsets,
including program management costs.
Investment in future energy research
We continued to investigate emerging technologies and
renewable gases to support the delivery of sustainable
energy solutions for our customers. Over FY20-FY25, we
invested $14.08m in this area. Refer to page 87 for further
details on our investigations related to biomethane
and hydrogen.
Internal carbon pricing approach
The Safeguard Mechanism has established the ACCU
price as the carbon investment signal across the industrial
sector. This has supported increased maturity in the
ACCU market through a clear demand signal. Given this,
during FY25, we updated our carbon pricing approach
to align with the ACCU price and have removed our
abatement premium.
APA's updated internal carbon price is based on published
market forecasts of ACCU prices available to FY35
1, with
longer-term prices assumed to grow at 2% above inflation,
based on the rate of growth referenced for the Safeguard
Mechanism cost containment measure.
2
Internal Carbon Price, AUD real per t CO2-e
FY25
41
FY30
65
FY35
98
FY40
108
FY50
132
Our internal carbon price was applied to emission
avoidance and reduction projects as well as growth
investment projects and decisions where relevant.
This carbon price forecast will be updated periodically to
reflect updated independent market analysis, and
we will review our approach in response to any
regulatory changes.
CLIMATE REPORT (CONTINUED)
78 APA GROUP FY25 ANNUAL REPORT
1 Market-leading, independent ACCU price forecast as at June 2025.
2 Under the Safeguard Mechanism cost containment measure, Safeguard facilities that exceed their baseline may be eligible to buy ACCUs from the Clean
Energy Regulator. The price is set at $75 in FY24 and indexed in future financial years by the Consumer Price Index (CPI) plus 2% each year.
Delivering our Climate Transition Plan commitments
Our approach to operational emissions reduction
We continued to gain specific insights that have helped to
shape progress towards our operational emission targets
and goals. This includes increasing our understanding of:
•
methane sources and abatement options by applying
enhanced methane measurement techniques and
undertaking detailed engineering studies for
abatement initiatives
•
lead times to embed abatement projects within
operational and maintenance planning, with a focus
on the safety and reliability of our assets and the
resourcing required
•
abatement costs and technical and commercial
challenges related to compressor electrification
•
evolving carbon pricing as a result of regulatory
changes and maturing carbon markets, and their
influence on marginal abatement costs
•
commercial and technical considerations and
tradeoffs to ensure ongoing provision of reliable
and affordable energy for our customers.
We have embedded decarbonisation plans into our
organisation to support the delivery of our CTP
commitments. These include adaptive processes to
achieving abatement, working through a portfolio of
options as technology develops and as we contribute
to industry knowledge.
Our approach to reducing our operational emissions is
focused on:
•
prioritising emissions avoidance and reduction as key
levers to achieve structural abatement in line with our
emissions mitigation hierarchy
•
applying our internal carbon price to guide decisions
on whether there are reasonable grounds to pursue
specific emissions avoidance and reduction
opportunities
•
undertaking enhanced methane measurement to
inform our methane abatement efforts and enable
reporting of progress towards achieving our target
•
continued compliance with regulatory frameworks,
such as Australia’s Safeguard Mechanism, to support
alignment with Australia’s Nationally Determined
Contribution, which in turn supports progress towards
the objectives of the Paris Agreement
•
using offsets that meet our clearly defined Offset
Criteria where abatement is technically or
commercially challenging.
In FY25, we updated our pathways analysis for our 2030
operational gas infrastructure and methane emission
targets, and our 2030 operational power generation
emissions intensity goal to inform the refresh of our CTP.
Updated pathways are presented in our 2025 CTP with
specific progress made in FY25 noted in this report.
Compliance with regulatory frameworks
APA’s Goldfields Gas Pipeline, South West Queensland
Pipeline and Newman Power Station were covered by the
Australian Government Safeguard Mechanism in FY24 and
have been subject to declining facility baselines under the
scheme from FY24. Our Diamantina and Port Hedland
Power Stations are also covered under the Safeguard
Mechanism by a sectoral baseline.
The scheme sets the pace of emissions reductions for
covered facilities with a declining baseline requiring
Australian Credit Carbon Units (ACCUs) or Safeguard
Mechanism Credits (SMCs) to be surrendered for any
above-baseline emissions from these facilities.
Consistent with our CTP, we prioritise emissions avoidance
and reduction to meet Safeguard Mechanism baselines.
Where abatement is technically or commercially
challenging, we use offsets that meet our clearly defined
Offset Criteria (refer page 81).
APA emissions mitigation hierarchy
Avoid
Minimise emissions from
new infrastructure and
growth projects
Reduce
Reduce emissions
through operational
excellence and
abatement initiatives
Offset
Offset emissions that
cannot be reasonably
avoided or reduced to
support performance
requirements
Enablers
Innovate
Consider new and emerging technologies,
partnerships and other innovations
Invest
Align our net zero ambition with our portfolio
strategy, capital allocation, decision-making,
planning and valuation
FY25 ANNUAL REPORT APA GROUP 79
Our approach to offsets
Our approach is to surrender ACCUs or SMCs for any
above-baseline emissions from our covered facilities with
declining baselines under the Safeguard Mechanism.
Beyond the use of offsets to meet regulatory obligations,
under our 2022 CTP, we have surrendered voluntary offsets
to meet our Scope 3 reduction commitment in relation to
business travel emissions, as well as to align with a
straight-line trajectory to our 2030 gas infrastructure
operational emissions reduction target.
Under our refreshed 2025 CTP, we have prioritised
investment in structural abatement, retiring this straight-
line trajectory approach. We expect a stepped emissions
trajectory as we progress our abatement projects and
surrender offsets to meet our obligations under the
Safeguard Mechanism, replacing the need for voluntary
offsets to meet the annual performance required under a
straight-line trajectory approach.
This approach will be implemented from FY26. We will
continue to surrender offsets on a voluntary basis based
on our total business travel emissions to address our
Scope 3 emissions. We will use voluntary offsets with
respect to a gap to our gas infrastructure operational
emissions target remaining at 2030.
APA's Offset Criteria is designed to guide our procurement
and investment in carbon offsets when required (refer
page 81). We aim to build a diverse portfolio of offsets,
prioritising projects that offer broader social and/or
environmental benefits. In FY25, we made minor
enhancements to our Offset Criteria to reflect regulatory
reforms and support greater flexibility and disclosure
when sourcing and reporting on offsets.
Our dedicated offsets team have assisted in setting
our medium-term strategy to source offsets through
a combination of multi-year contracts, investing in
projects and/or funds, and making purchases from the
spot market. We are developing an environmental
planting and biodiversity project located in regional
New South Wales known as Project Oaks (refer page 81).
In our FY25 Sustainability Data Book, we continue to
disclose comprehensively on our offsets surrender
and those held on our balance sheet.
We surrender offsets that have independent verification
through recognised national/international standards.
Where we have subsequently been made aware of
particular issues relating to any offset projects that we
hold in our inventory, we have investigated these issues
and taken them into account when deciding whether to
surrender these offsets in the future.
CLIMATE REPORT (CONTINUED)
80 APA GROUP FY25 ANNUAL REPORT
Image: Wallumbilla Gas Hub, Qld
APA’s Offset Criteria
Requirement
Offset Criteria
Additionality
Offsets to represent genuine abatement.
Carbon dioxide removal to be prioritised
over emission avoidance projects.
Co-benefits
Offsets to prioritise co-benefits leveraging
synergies with APA’s Sustainability
Roadmap and our priority issues, such as
support for First Nations engagement.
Double
counting
Reductions attributable to the surrender
or retirement of any offset are otherwise
unclaimed by others. Specifically,
unclaimed by others means: the party
that surrenders or retires the offsets, can
claim the reduction of CO2 emissions, and
no other party, including the party that
originally generates and subsequently
sells the offset, can claim that reduction
potentially resulting in ‘double counting’.
Geographic
location
Offsets prioritised in the country where
the emissions being addressed occurred.
Leakage
The standard under which the offset is
generated must have a mechanism to
address changes in emissions outside the
project boundary due to the project’s
implementation.
Permanence
Offsets purchased from a project to have
a minimum life of 25 years with a longer
term preferred. The standard under which
the offset is generated to have a
mechanism for dealing with emissions
reversal, e.g. bushfire.
Transparency
Offsets purchase and surrender detail to
be publicly disclosed, including key offset
information (type, source, host country,
methodology, accrediting organisation
and link to the relevant offset register).
Verification/
Registration
Offsets to have independent verification
through recognised national/
international standards and be listed and
tracked in a publicly transparent registry.
Vintage
Offsets vintage to be close in time, not
greater than five years to when the
emission occurred.
CASE STUDY
Project Oaks: Delivering
carbon sequestration and
biodiversity value
In September 2024, APA purchased The Oaks, a
980 ha property located 45 km from Bathurst in
New South Wales, to develop as its first carbon
sequestration project. In May 2025, the Clean
Energy Regulator declared Project Oaks an
Eligible Offset project under the ACCU Scheme's
new Reforestation by Environmental or Mallee
Planting Method. This method involves
establishing and maintaining native vegetation
on land previously cleared of forest cover,
sequestering carbon as the trees grow.
Historically grazing land, this method supports
the reintroduction of grazing in parallel with ACCU
generation. With around 500 ha eligible for this
carbon project, we estimate the project will
generate around 220,000 ACCUs over the 25-year
crediting period.
The area ineligible for the carbon project holds
richly biodiverse native vegetation. APA's Offsets
team is exploring opportunities to protect this
native vegetation by placing it under
conservation through the NSW Government's
Biodiversity Offset Scheme. Together with the
Environmental Planting project, we aim to protect
and enhance biodiversity corridors for plants and
wildlife, like the endangered purple copper
butterfly (Paralucia spinifera). This is one of
Australia's rarest butterfly species, only known to
occur in the Central Tablelands of New South
Wales (around Bathurst, Lithgow and Oberon). We
aim to certify the nature improvements,
validating the co-benefits to the ACCUs.
An Aboriginal Cultural Heritage Assessment is
underway on Project Oaks. We are working with
local First Nations groups throughout this process,
with fieldwork and test excavations planned for
FY26. We aim to build on the relationships with
our First Nations stakeholders and explore
avenues to walk together in creating shared-
value opportunities. This may be an avenue to
contribute to delivering APA's Reconciliation
Action Plan.
FY25 ANNUAL REPORT APA GROUP 81
Image : The Oaks, NSW
Reducing our operational gas infrastructure greenhouse gas emissions
CTP commitment
Target: 30% operational emissions reduction for gas infrastructure by 2030 (FY21 base year)
Progress and highlights
We continued to deliver our portfolio of abatement
initiatives to progress towards our 2030 gas infrastructure
and methane targets, while also growing our operations to
address our customers' energy needs. We achieved
emissions reduction by:
•
implementing compressor fuel gas optimisation
models to achieve fuel gas reductions
•
achieving methane abatement by delivering a portfolio
of initiatives
•
procuring 100% renewable electricity by surrendering
LGCs
•
surrendering ACCUs to meet regulatory obligations
under the Safeguard Mechanism and Verified Carbon
Units (VCUs) to address voluntary performance
requirements under our 2022 CTP.
Progress made in delivering our major abatement
initiatives is provided on page 83. Information on the
abatement achieved in FY25 is provided in the Metric and
targets section of this report (page 93).
We identified compressor electrification in our 2022 CTP as
an opportunity to support our 2030 target. In FY23, a
national compressor study was completed and a
business case for the installation of a new electric motor
drive (EMD) at Wallumbilla compressor station prioritised.
Following the development and review of a detailed
business case, the Wallumbilla compressor electrification
project was assessed to be unviable (refer to page 83).
This was due to it being significantly NPV negative with our
internal carbon price applied and with exposure to further
cost uncertainty associated with replacing fuel gas with
electricity brought to the site. As addressed in our 2025
CTP, the decision was made not to progress with this
project, taking into consideration a concurrent
assessment of other more financially viable abatement
opportunities.
We will monitor signpost indicators for compressor
electrification projects on existing assets, while we
continue to improve our knowledge through the
consideration of this technology in new growth projects.
We are therefore focusing on installing EMD compressors
when delivering new projects, where feasible to do so. In
FY25, we commissioned an EMD compressor station for the
Kurri Kurri Lateral Pipeline Project.
We also completed a feasibility study to assess the
potential use of biomethane as a renewable energy
source at Wallumbilla compressor station. Despite much
knowledge being gained about potential projects and
applications for biomethane, the study determined that
operational and commercial risks were currently too high
to support reliance on the associated greenfield
biomethane project.
We updated our pathway to our 2030 target. This is part of
the refresh of our 2025 CTP and was based on forecast
changes in our emissions due to organic growth and
portfolio changes, and emissions reductions forecast to
be achievable by 2030.
Reducing our operational methane emissions
CTP commitment
1
Target: 30% reduction in operational methane emissions by 2030 (FY21 base year)
Progress and highlights
We systematically address methane emissions by
implementing our Methane Action Plan, which addresses
four areas consistent with the Methane Guiding Principles:
•
Measure: Improve the accuracy of methane emissions
data and increase transparency.
•
Mitigate: Continually reduce methane emissions from
APA-operated assets.
•
Mobilise: Encourage action by APA non-operated assets
and advance performance across gas value chains.
•
Advocate: Promote sound policy and regulations on
methane emissions.
In FY25, our progress included the following highlights:
•
We delivered enhanced methane measurements at
Mondarra Gas Storage and Processing Facility (MSF),
Eastern Goldfields Gas Pipeline (EGP) and South West
Queensland Pipeline (SWQP).
•
We developed an enhanced methane reporting
method informed by international frameworks.
•
We completed engineering studies and delivery
planning for compressor methane recovery.
•
We delivered a portfolio of methane emissions
abatement initiatives achieving emissions reductions
primarily through valve and compressor seal upgrades
and compressor fuel efficiency.
•
We assessed all valves with high-bleed controllers,
identifying around 170 valves to be upgraded by FY27,
with around 28% of these valves upgraded in FY25 and
planning progressed for further upgrades.
Progress made on our major methane abatement
initiatives is reported on page 83, with abatement
achieved reported in the Metric and targets section of this
report (page 93).
Enhanced methane measurement is important to inform
our mitigation efforts and to enable progress reporting
towards our methane emissions reduction target. This
year, we disclose information on the enhanced methane
measurements for three of our assets (refer page 84). We
also continued to advocate for changes to regulatory
reporting methodologies to enable us to report our
progress towards our 2030 methane emissions reduction
target based on our enhanced methane reporting
method.
We updated our pathway to our 2030 methane emissions
reduction target as part of the refresh of our 2025 CTP.
1 Our 2022 CTP committed to the development of a methane target with this target announced in our Climate Report 2023.
CLIMATE REPORT (CONTINUED)
82 APA GROUP FY25 ANNUAL REPORT
Progress made in delivering our major abatement initiatives
Abatement initiative
Progress and emissions reductions in FY25
Compressor fuel efficiency
We can reduce the amount of fuel gas we
use by operating our compressor stations
more efficiently. This is achieved by
embedding processes, tools and
engineering guidance to inform the
Integrated Operations Centre (IOC) team's
decisions.
We continued to implement our compressor fuel gas optimisation models to assist our
IOC operators in their decision-making to drive fuel gas reduction. In FY25, we achieved
reductions in fuel gas usage via compressor optimisation implemented on the South
West Queensland Pipeline (SWQP), Goldfields Gas Pipeline (GGP) and the Moomba
Sydney Pipeline (MSP). This was estimated to deliver a 9,558 t CO2-e emissions reduction.
Valve upgrades
Control valves release natural gas to ensure
the safe regulation of system pressure and
flow. We are reducing methane emissions by
80 to 100% by upgrading valves with high-
bleed controllers to have low-bleed
controllers, or converting them to instrument
air systems.
We completed a comprehensive assessment of all valves with high-bleed controllers
across our gas transmission portfolio, evaluating their suitability for upgrade or
conversion. We identified around 170 valves with high-bleed devices for conversion to
low-emission options by FY27. In FY25, we upgraded 47 valves, representing around 28%
of the valves identified, and progressed planning to upgrade further valves in FY26. The
valve upgrades initiative was estimated to deliver a 1,547 t CO2-e emissions reduction.
Compressor methane recovery
Centrifugal compressors vent methane to
maintain equipment integrity and reliability,
supporting the safety and productivity of our
operations. Methane is released when
compressors start up and shut down, with
ongoing emissions from seal gas systems.
We established technical practices to minimise start-up emissions and completed
scoping work on methane recovery from shut downs and seal gas systems. We
considered options to use the methane recovered for onsite power generation or to
inject it back into our pipelines.
We completed an initial suitability assessment for each of our compressors and have
identified compressors suitable for the installation of methane recovery technology by
FY30. In FY25, we also completed technical and commercial assessments and
progressed plans to pilot compressor methane recovery starting in FY26.
Compressor seal upgrades
We have a nationwide program to replace
traditional rod packing with ultra-low
emissions packing using solid rings to
significantly reduce emissions from our
reciprocating compressors.
We completed compressor seal upgrades across most of our major facilities to reduce
seal leakage and abate emissions. Compressor seals have been upgraded on around
three-quarters of our reciprocating compressor units. The remaining units, which
operate less frequently and produce less emissions, will be scheduled for compressor
seal upgrades in line with maintenance plans starting from FY26. This initiative is
estimated to have delivered a 6,313 t CO2-e emissions reduction in FY25.
Compressor electrification
Following the decision not to proceed in the
short term with retrofitting an electric
compressor at Wallumbilla, we are focused
on installing electric motor drive
compressors when delivering new projects
where feasible.
We commissioned an electric motor drive compressor station as part of the Kurri Kurri
Lateral Pipeline Project. This pipeline will supply gas to the New South Wales Hunter
Power Project being delivered by Snowy Hydro Limited. By providing dispatchable
energy, the Hunter Power Project will support the security and stability of the National
Electricity Market as the share of renewables increase. The firming GPG provided is
forecast to facilitate 1,500–2,000 megawatts of renewables capacity and avoid about
5.8 Mt of CO2 emissions per year.
1
Expanding our emissions abatement pipeline
We continue to expand our gas
infrastructure emissions reduction pipeline
by investigating and progressing abatement
opportunities through our project
development process.
In FY25, we continued to assess the abatement potential and adoption feasibility of
additional emissions avoidance and reduction opportunities. This included a study to
identify further emission reduction opportunities for our exiting gas assets, including
high-level techno-economic analysis and the development of marginal abatement
costs.
We also continued to investigate emerging technologies that have the potential to
minimise emissions for future projects.
FY25 ANNUAL REPORT APA GROUP 83
1 Hunter Power Project - Snowy Hydro [Accessed 2 May 2025].
CASE STUDY
Enhanced methane
measurement and
reporting
In FY25, we continued to progress enhanced
methane measurement to improve the accuracy
of our methane data and the transparency of
disclosures as well as guide our abatement plans
to achieve our FY30 methane emissions
reduction target.
We took direct aerial methane measurements,
using Bridger Photonics' leading-edge gas
mapping LiDAR technology, and ground-level
measurements on our MSF and EGP (without
compression) to build our understanding of
methane emissions across our portfolio. For the
first time, we undertook stack testing of
compressor exhaust gases and estimated non-
routine emissions. Having conducted aerial
surveys and ground measurements for our SWQP
in FY24, we extended the methane emissions
data set for this asset by collating activity data
and calculating non-routine emissions.
Informed by prior measurement pilots and our
review of international measurement
frameworks, we established our own enhanced
methane reporting method and disclosed
assured data for the first time using this method
on these three assets.
Methane measurements at our Wallumbilla hub
Helicopter-based gas mapping LiDAR surveys
Enhanced methane reporting method
Enhanced methane reporting refers to our approach for
quantifying methane emissions using a combination of
activity data, engineering calculations, and both ground-
level and aerial direct measurements to improve the
accuracy and completeness of reported emissions beyond
currently available regulatory reporting methods. The
method focuses on methane emissions from fugitive,
venting and incomplete combustion sources. Our method
is guided by international best practices, including the
United States Environmental Protection Agency (US EPA)
Method 21 and the United Nations Environment Programme
Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework.
Overview of methane measurement results
Across the three assets, measured methane emissions at
SWQP were higher when compared to the NGER method,
whereas emissions from infrastructure without
compression were lower. No methane leaks were detected
on the pipelines at all three assets, while the historical
standard design of compressor infrastructure, where valves
were designed to vent, contributed materially to methane
emissions at SWQP.
Based on the total enhanced methane emissions reported
in FY25 for the three assets, SWQP was the most significant
contributor, followed by MSF and EGP. This supports our
methane emissions abatement focus on pipeline assets
with compression.
Comparison of APA enhanced methane measurement with
NGER method estimates (tonnes methane)
NGER
Enhanced method
MSF
SWQP
EGP
0
400
800
1200
Venting was the highest source of methane emissions at
SWQP, confirming the importance of emissions reduction
initiatives underway, including valve upgrades, compressor
methane recovery, and compressor seal upgrades. Venting
emissions from our MSF and EGP were a comparatively
smaller source with fugitives and non-routine emissions
associated with maintenance, commissioning and venting
for safety purposes being the most significant source.
When these results and further engineering assessments of
data at other assets are extrapolated across APA's entire
gas infrastructure portfolio, we believe our emissions are
likely lower than what is currently reported under the NGER
scheme. This will be confirmed over time within our voluntary
methane inventory and we intend to re-baseline for our
enhanced methane reporting method from FY26 onward.
We assessed the option of adopting an international
methane reporting framework while continuing to report to
the Australian regulator under its compliance scheme. The
costs associated with longer-term dual reporting, and the
intention of the Australian Government to review methane
reporting methodologies, led to APA’s decision not to
commit to an international framework. Valuable lessons
from piloting the OGMP 2.0 measurement and reporting
framework have been incorporated into our approach. We
will continue to advocate for uplifted methane reporting
methodologies by the Department of Climate Change,
Energy, the Environment and Water.
Refer to our FY25 Greenhouse Gas and Energy Calculation
Methodology for further details on the method and to our
FY25 Sustainability Data Book for the enhanced methane
measurement data.
CLIMATE REPORT (CONTINUED)
84 APA GROUP FY25 ANNUAL REPORT
Reducing the emissions intensity of our power generation infrastructure assets
CTP Commitments
Goal: 35% reduction in operational emissions intensity for power generation infrastructure by 2030 (FY21 base year)
Progress and highlights
Progress towards our 2030 operational emissions intensity
goal for power generation is being delivered through
operational efficiencies at our gas power generators and
through our investments in renewables to meet customer
demand. This includes our delivery of renewables as part
of our bundled energy solutions.
We completed construction and commissioning of the
Port Hedland Solar and Battery Project in Western Australia.
This is part of our 1 GW+ renewables pipeline in the Pilbara
region to support our mining customers' energy and
decarbonisation plans.
We implemented optimisation projects at our Diamantina
power generation assets, optimising the dispatch of the
solar and thermal assets to minimise how much solar
generation is curtailed due to thermal generation
constraints.
Our 2025 CTP highlights emerging growth opportunities to
deliver contracted flexible GPG to support Australia’s
energy transition as we contribute to decarbonisation by
customers and within the broader economy. Our current
power generation emissions intensity forecast indicates
that there is a pathway to achieving our 2030 goal. We will
continue to monitor this pathway as we respond to
opportunities relating to new GPG and renewable energy
projects.
Further information on the transition of GPG to more
flexible generation and the longer-term decarbonisation
pathways for GPG are addressed within the 2025 CTP.
Investing in electricity transmission to enable renewables
1
CTP Commitments
Goal: Net zero operational emissions by 2040 (electricity transmission)
Goal: Contribute positively to grid decarbonisation measured by MW of enabled renewable infrastructure
Goal: Active program to reduce emissions we can control, and apply best-practice management techniques to manage line losses
APA is expanding its electricity transmission assets as part
of our investment in remote grids to connect our resource
industry customers to firmed renewables. In December
2024, the Western Australian Government awarded APA
priority project status to deliver electricity transmission in
two of four priority corridors identified for the development
of new common-use electricity transmission infrastructure
in the Pilbara region. These corridors will play a pivotal role
in supporting decarbonisation across the Pilbara.
The loss of electricity due to line losses is the main source
of emissions from our electricity transmission
infrastructure. The initial planning and design phase of
greenfield infrastructure presents the greatest opportunity
to avoid transmissions system losses. We adopted a
guideline to support avoiding electricity transmission line
and system losses for all new greenfield assets. The
guideline aims to establish loss reduction as a specific
project objective, identifying opportunities for minimising
transmission line losses while considering the return on the
investment case.
The majority of the operational emissions (excluding line
losses) from our existing electricity transmission assets
continues to be addressed by procuring 100% renewable
electricity through surrendering LGCs (refer to the Metric
and targets section of this report). We continued to apply
enhanced measurement techniques to sulphur
hexafluoride (SF6) leakage emissions and consider
opportunities to achieve reduction for the electricity
transmission emissions we control.
Scope 3 emissions
2
CTP Commitments
Establish a Scope 3 goal
APA is pursuing opportunities to reduce Scope 3 emissions
which represent the indirect emissions that occur
because of APA’s business activities, originating from
sources that APA does not directly control. APA defines its
Scope 3 emissions in alignment with the Greenhouse Gas
(GHG) Protocol’s Scope 3 Standard. Emissions associated
with natural gas products we transport but do not sell to
the end-user are not included in our Scope 3 emissions.
These are typically gas producer and retailer Scope 3
emissions.
In FY25, our Scope 3 emissions contributed about 24% of
APA’s total Scope 1, Scope 2 and Scope 3 emissions.
3 Our
largest sources of Scope 3 emissions are fuel- and
energy-related activities (Category 3), purchased goods
and services (including capital goods) (Category 1 and 2)
and investments (Category 15). Together, these three
categories contributed around 97% of our Scope 3
emissions. We have focused on these categories when
identifying priority areas for targeted emissions reduction
initiatives.
FY25 ANNUAL REPORT APA GROUP 85
1 We have reviewed and revised our goals for electricity transmission as part of the refresh of our CTP. Refer to our 2025 CTP for further details.
2 We have established medium-term Scope 3 goals and a long-term ambition, and identified pathways to our medium-term goals. Refer to our 2025 CTP.
3 Based on Scope 2 emissions estimated based on the location method (refer to the FY25 Greenhouse Gas and Energy Calculation Methodology for details).
Progress and highlights
In FY25, we established our Scope 3 goals, having further
engaged with key value chain stakeholders, and
completed detailed assessments of levers to support
emissions reductions. Our Scope 3 goals and pathways
are included in our 2025 CTP.
We further improved our Scope 3 data accuracy, including
changing to new emissions factors to more accurately
represent APA’s Scope 3 Category 1 and 2 emissions.
We completed our deep-dive assessment and
quantification of Scope 3 emissions reduction
opportunities across all APA’s Scope 3 categories which
supported the development of our Scope 3 goals. We
engaged with our suppliers in our material Scope 3
categories to improve our understanding of their
emissions reduction plans and inform development of
APA’s sustainable procurement framework. Further to this,
we have shared our expertise in compressor efficiency
and methane emissions measurement and reduction with
the operators of our assets. Given that APA does not have
direct operational control over Scope 3 emission sources,
achieving reductions requires collaboration and
engagement processes, including the sharing of
our expertise.
We continued to surrender voluntary offsets based on our
total business travel emissions and achieved reductions
by procuring 100% renewable electricity through
surrendering LGCs.
We also achieved reductions in Category 15 gas
infrastructure emissions by executing the Western Outer
Ring Main (WORM), which included the upgrade of the
existing compressor station at Wollert. The WORM is a
key component of the APA-owned Victorian Transmission
System and is operated by the Australian Energy
Market Operator.
The WORM increases the efficiency with which gas
can be transported to destinations, including the Iona
Underground Gas Storage (UGS) and Victorian customers.
This new transmission pipeline enables the continuous
high-pressure flow interchangeably from the eastern
and western parts of the network. It also bypasses the
need for gas to flow through the low-pressure Melbourne
distribution network before receiving further compression
by the Brooklyn Compressor Station for transportation to
western parts of the network including Iona UGS.
1
The additional high-pressure flow capacity and upgrade
to the Wollert Compressor Station increases capacity into
the Iona UGS, allowing for greater volumes of gas to be
efficiently transferred and stored. This requires less
compression to achieve gas transfer to Iona UGS
compared with the previous network configuration,
which depended on two or more compressors at
Brooklyn Compressor Station.
Based on data analysis, we estimate that emissions
savings in FY25 enabled by the WORM exceed the
estimate of 10,110 t CO2-e per year established through
the environmental approvals process.
2
CLIMATE REPORT (CONTINUED)
86 APA GROUP FY25 ANNUAL REPORT
1 Figure shows the WORM in relation to the South West Pipeline (SWP), the Longford Dandenong Pipeline (LDP) and the Victorian Northern Interconnect (VNI).
2 APA Technical Note - Western Outer Ring Main - Environmental Effects Statement, 13 September 2021.
Executing the Western Outer Ring Main (WORM) on the VTS
APA Gross emissions by Scope (FY25)
Scope 3
24%
Scope 2
6%
Scope 1
70%
Gross Scope 3 emissions by category (FY25) (kt CO2-e)
37%
31%
29%
3%
Category 3 -
Fuel and energy
related
activities
Category 15 -
Investments
Categories 1 and
2 - Purchased
goods and
services
(including
capital goods)
Other
Categories (5, 6,
7 and 11)
0
50
100
150
200
250
300
97% of Scope 3 emissions
Broader value chain emissions and supporting our
customers' future energy needs
Beyond APA’s Scope 3 emissions, our broader value chain
comprises both upstream and downstream participants
that interact with APA’s infrastructure and services.
Upstream, this includes third-party electricity generators
and gas producers whose energy APA transports.
Downstream, our value chain includes a wide range of
end-users who consume the electricity generated and
the gas transported via APA’s infrastructure.
In FY25, we improved our understanding of the
downstream sectors that use the gas APA transports.
We categorise downstream consumers aligned with
Australian Energy Market Operator’s classifications:
Commercial, Residential, Industrial (including mining),
Liquified Natural Gas (LNG) and GPG.
Our analysis of APA’s meter data provided greater insight
into the large gas consumers connected to our network,
and the industry sectors to which they belong (refer to the
figure below). Where our meter data did not allow us to
categorise the breakdown by sector we applied AEMO's
2025 GSOO data and the 2024 Integrated System Plan
Step Change scenario to estimate the sector by sector
breakdown.
A substantial proportion of this gas is for Australia’s LNG
industry, with the remaining gas consumed by industrial
sectors (including mining), and by commercial and
residential end-users and GPG. An analysis of future gas
use projections was also undertaken as discussed in our
2025 CTP.
Sectors using the gas APA transports
1
58%
18%
8%
16%
LNG
Industrial (including mining)
Gas-powered generation
Residential and commercial
APA has explored a range of potential future energy
solutions of interest to our customers that have the
potential to support the transition to a lower carbon
economy. We have progressed hydrogen initiatives,
investigated the potential for biomethane as a renewable
energy source, and progressed studies into how our
infrastructure can support CO2 transportation.
Collaboration on hydrogen projects
APA collaborated with Wesfarmers Chemicals Energy and
Fertilisers (WesCEF) to explore the potential to produce
and transport green hydrogen via APA’s Parmelia Gas
Pipeline to WesCEF’s ammonia production facilities at the
Kwinana Industrial Area south of Perth. Our Parmelia Green
Hydrogen Project (the PGH2 Project) Feasibility Study was
supported by funding from the Australian Renewable
Energy Agency (ARENA), with key results published in
November 2024.
The proposed PGH2 Project offers an opportunity to
deliver large-scale green hydrogen to Kwinana – a land-
constrained established industrial precinct – and creates
options for hydrogen use in industry decarbonisation and
growth. The project also demonstrates how existing
natural gas assets can support the energy transition.
Research into biomethane
APA explored the potential of biomethane as a renewable
energy source. In FY24, we conducted an expression of
interest to identify potential biomethane supply chains to
understand opportunities for domestic production and
integration into our gas transmission network.
In FY25, we undertook a more detailed study into the
potential for biomethane as a ready operational
abatement lever with a focus on opportunities to achieve
emissions reductions at our Wallumbilla compressor
station. This study determined that operational and
commercial risks were too high at the time of the
assessment to support reliance on a greenfield
biomethane project, and that reforms are necessary
to facilitate broader market development.
Supporting our mining customers
We are supporting our mining customers by providing
bundled energy solutions comprising renewables
supported by battery storage, firming GPG, and gas and
electricity transmission. Access to reliable, affordable and
lower emissions energy, will support our mining customers
to electrify their plant and equipment to reduce diesel
fuel use.
In FY25, APA commissioned the Port Hedland Solar and
Battery Project in the Pilbara. This 47 MW solar photovoltaic
generation facility and 35 MW (36.7 MWh) battery energy
storage system supplies renewable energy for port
operations in the Pilbara mining region.
APA's investments at Port Hedland provide an example
of how our bundled energy solutions are helping to lower
emissions while providing reliable supply to customers
through a combination of gas generation, renewables
and battery storage.
Further information on our development plans to support
our customers' future energy needs and decarbonisation
plans is provided in our 2025 CTP.
FY25 ANNUAL REPORT APA GROUP 87
1 Sectoral breakdown of end-user consumption of natural gas delivered through APA's wholly- or partially-owned gas transmission pipelines, estimated based
on meter data from APA-operated gas transmission pipelines, data from the operators of our assets, and AEMO's 2025 GSOO and WA 2024 GSOO.
Reflecting climate-related risks and opportunities in our strategy
Climate-related risks and opportunities are considered
within APA’s strategy (refer to page 20). Climate is an
enterprise risk due to it posing potential challenges and
uncertainties that may impact APA's ability to achieve its
strategic objectives or sustain its operations (refer to page
58). APA’s Board and Executive Leadership Team ensure
strategies are in place to manage potential risks
and opportunities, including those related to climate (refer
to page 100). The Risk Management Committee primarily
oversees the APA risk program to support the Board (refer
to page 65).
We identify, assess and manage climate-related risks and
opportunities in line with the APA risk management
framework (refer page 99). Aligned with our climate-
related risk assessment processes, climate-related risks
and opportunities are categorised under transition risks
(market, technology, policy and legal, and reputational
risks) and physical risks (acute and chronic) and mapped
to our overall corporate risk categories.
Scenario analysis is used to assess physical and transition
risk, and monitor opportunities from emerging technology
and market developments. Opportunities to increase the
resilience of our assets are identified as part of the risk
assessment and management processes for our assets.
We consider risks and opportunities across three time
horizons: short term (0–3 years), medium term (4–10 years)
and long term (greater than 10 years).
Climate-related transition risks and opportunities
When developing our 2025 CTP, we engaged industry
experts to undertake a transition risk and opportunity
assessment, including: 1) quantitative modelling of key
assets across our East Coast Gas,
1 West Coast Gas and
Power Generation business units; and 2) qualitative
analysis of climate-related transition risks and
opportunities across APA’s portfolio of majority-owned
assets.
The quantitative modelling of key assets across our East
Coast Gas, West Coast Gas and Power Generation
business units
2 covered the majority (>50%) of the book
value in each business unit.
Scenario analysis tested the transition risks and
opportunities associated with policy changes, technology
shifts and market developments and analysed our
business strategy’s robustness and flexibility to thrive in a
rapidly evolving regulatory and environmental landscape.
The quantitative modelling was supported by APA’s gas
market and financial modelling capabilities. Financial
resilience was tested and categorised for each business
unit/scenario/time horizon combination. Resilience was
tested based on the modelled change in Discounted Cash
Flow (DCF) relative to the Book Value or base case DCF of
key assets in each business unit (refer to the table below).
3
In aggregate, our business units are assessed to have
more opportunity than risk in low-temperature scenarios
throughout the Australian energy transition. Key findings
from the quantitative analysis:
•
In the East Coast Gas business unit, 'opportunity' was
identified in the long term across all scenarios, with
impacts 'negligible' for other timeframes. The
'opportunity' assessment outcome is due to benefits
arising from modelled increases in north-to-south gas
flows on the Moomba to Sydney Pipeline.
•
In the West Coast Gas business unit, low risk was
identified in the long term for the 1.5°C scenario. This
was driven by a modelled decline in gas throughput as
the electrification and renewable trend accelerates
with some customer investment in onsite gas storage.
•
Impacts were modelled to be ‘negligible’ across
scenarios and time horizons for Power Generation.
Qualitative risk and opportunity assessments in aggregate
supported the business unit level quantitative assessment.
In addition to the opportunity noted for the East Coast Gas
business unit, opportunities were identified for our Power
Generation business unit in terms of addressable markets
for GPG. Other opportunities include biogas, hydrogen and
carbon capture and storage. APA can play a role in the
execution of all of these opportunities (refer page 87).
Further information is provided in the 2025 CTP.
Short-, medium- and long-term impacts, by business unit, by scenario
Short term
(DCF v Base case DCF)
Medium term
(DCF v Base case DCF)
Long term
(DCF v Base case Book Value)
1.5°C
<2°C
>2.5°C
1.5°C
<2°C
>2.5°C
1.5°C
<2°C
>2.5°C
East Coast
Gas
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Opportunity
Opportunity
Opportunity
West
Coast Gas
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Low
Negligible
Negligible
Power Gen
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Negligible
Legend
Negligible
(<10% to -5%)
Low
(-5% to -15%)
Moderate
(-15% to -25%)
High
(-25%+)
Opportunity
3
CLIMATE REPORT (CONTINUED)
88 APA GROUP FY25 ANNUAL REPORT
1 Wallumbilla Gladstone Pipeline is not included due to its negligible risk due to contracted revenue through to 2035.
2 Assets modelled were the South West Queensland Pipeline (SWQP), Moomba to Sydney Pipeline (MSP), Victoria Transmission System (VTS), Goldfield Gas
Pipeline (GGP), Newman Power Station and the Diamantina Power Station.
3 Opportunities are defined by a life of asset discounted cash flow value that is >=10% higher than base case due to volume or revenue growth compared to
2024, based on results rounded to the nearest whole number.
APA's climate-related transition risks
APA’s exposure to climate-related transition risks reflects the updated transition risk and opportunity assessment
findings as detailed within our 2025 CTP. These risks have not materially changed over FY25 and remain within APA’s
Balanced Risk Appetite, with further opportunities identified related to gas transmission and storage infrastructure to get
gas to where it is needed, flexible gas generation to underpin the renewables build-out, and electricity transmission
connected with our existing and growth assets in the Pilbara region. APA will continue to identify, assess and manage
climate-related transition risks and opportunities within our business planning, investment and risk management
processes, and engage with our securityholders and key stakeholders, as we deliver our 2025 CTP.
Transition risks
Legend: short term (S)(0-3 years), medium term (M)(4-10 years) and long term (L)(10+ years)
Policy and legal risk
Risk
Timeframe
Business area
affected
Potential impacts
Key mitigation controls
New climate-related policy action affecting APA operations
Expanded or amended
carbon pricing or
emissions-related
regulations, or reduction in
or delays to gas project
approvals
S M L
Gas
infrastructure
and power
generation
Financial impacts
Project delays with
financial, reputational or
supply shortfall
implications
Implementation of Climate Transition Plan
APA Internal Carbon Pricing Procedure
Customer-focused business strategy
Scenario analysis applied in business
planning
Issues management process
Government engagement and submissions
Changes in government
priorities, procurement
processes, or R&D and
deployment incentives for
new technology and
renewables
S M L
Gas
infrastructure
and power
generation
Future energy
Regulatory compliance and climate-related litigation
Non-compliance with
emissions reporting or
Safeguard Mechanism or
other climate-related
regulatory obligations
S M L
Group-wide
Fines
Reputational damage
Securityholder
divestment
APA Greenhouse Gas Emissions Reporting
Procedure
Governance structures and processes
Issues management process
APA Compliance Management Policy and
Compliance Management Framework
Annual climate-related reporting,
disclosures and assurance
Climate Change Standard
Non-compliance with
climate-related disclosure
obligations, climate-related
litigation
S M L
Group-wide
Technology risks
Risk
Timeframe
Business area
affected
Potential impacts
Key mitigation controls
Technology
Competition for scarce skills
or resources needed for
new technology expansion
S M L
Electricity
transmission,
power
generation,
future energy
Technology project
delays
Project financial non-
performance
Slowed progress towards
or ability to achieve
goals/targets/ambition
Workforce readiness assessments
Investment Committee process
Feasibility studies and business cases for
new technologies
Unsuccessful investments in
experimental technologies
S M L
Future energy
Market risks
Risk
Timeframe
Business area
affected
Potential impacts
Key mitigation controls
Reduced demand for natural gas and gas transportation
Faster than expected
substitution of natural gas
domestically or in the export
market due to the energy
transition, or development
of new gas supply is more
limited than expected
S M L
Gas
Infrastructure
assets
Financial impacts
Scenario analysis applied in business
planning, including financial resilience
testing of assets
Business strategy and strategic acquisitions
Future energy program
FY25 ANNUAL REPORT APA GROUP 89
Reputational risks
Risk
Timeframe
Business area
affected
Potential impacts
Key mitigation controls
Social licence
Increased stakeholder
concern over natural
gas and new electricity
transmission lines
S M L
Gas
infrastructure,
power
generation,
electricity
transmission
Securityholder
divestment
Opposition to gas
infrastructure expansion
projects and electricity
transmission lines
Reputational damage
impacting social licence
Challenges attracting
and retaining talent
Constrained access to
capital and insurance
Loss of customers
Engage with key stakeholders (landowners,
producers, customers, governments, etc.)
Monitor expectations, major trigger events within
the community and APA’s reputation score
Community and Social Performance initiatives
and programs working with First Nations Peoples
Implementation of APA’s Climate Transition Plan
and annual reporting against progress
Embedding climate transition risk in decision-
making and risk management frameworks
Opposition to new asset
developments
S M L
Group-wide
Climate Transition Plan and progress fail to meet stakeholder expectations
Commitments or
progress achieved fail
to meet expectations
S M L
Group-wide
Securityholder
divestment
Reputational damage
Challenges attracting
and retaining talent
Constrained access to
capital and insurance
Financial losses from
write-offs of offset
investments
Implementation of APA’s Climate Transition Plan
and annual reporting against progress
Governance structures and processes, including
Sustainability Management Committee and
Safety and Sustainability Committee
Executive remuneration linked to climate-related
performance
Stakeholder engagement on Climate Transition
Plan and Climate Reporting
APA Climate Policy
APA mitigation hierarchy and Internal Carbon
Pricing Procedure
Offsets Criteria and scorecard (investigation of
issues raised or identified with existing offsets)
Stakeholder criticism for
use of offsets towards
targets, or APA is
associated with an
offset project or class of
offsets that is
inconsistent with our
Offset Criteria
S M L
Group-wide
Securityholder
expectations related to
fiscal discipline are not
met
S M L
Group-wide
Securityholder
divestment
Reputational damage
Extensive securityholder engagement
Financial discipline in how capital is allocated to
emissions reduction projects
Consideration of least-cost abatement options
Financial and operational effectiveness
APA's climate-related opportunities
Resource efficiency and energy sources
Opportunity
Timeframe
Business area
affected
Potential benefit
Management plans
Methane emission
reduction
S M L
Gas
transmission
and storage
Reduced Scope 1
emissions
Meeting commitments
within CTP
Implementation of APA's Climate Transition Plan
and climate-related KPIs in short-term incentives
for Management
Methane Action Plan aligned with Methane Guiding
Principles
Methane abatement project pipeline
Enhanced methane measurement and reporting
Fuel gas savings
through compressor
efficiency
improvements
S M L
Gas
transmission
and storage
Reduced Scope 1
emissions
Reduced customer costs
Implementation of APA's Climate Transition Plan
Operational KPIs include emissions reduction
targets
Maintain 100% renewable electricity procurement
through surrendering LGCs
Renewable electricity
S M L
Group-wide
Reduced Scope 2 and
Scope 3 emissions
CLIMATE REPORT (CONTINUED)
90 APA GROUP FY25 ANNUAL REPORT
Products and services
Opportunity
Timeframe
Business area
affected
Potential benefit
Management plans
Development and
operation of electricity
transmission assets to
support increased need
for renewable electricity
S M L
Electricity
transmission
Business growth and increased
revenue
Contribution to grid decarbonisation
by enabling the transmission of
renewable energy
Supporting our mining and industrial
customers in remote areas such as
the Pilbara
Business strategy, focused on
electricity transmission projects that
connect with APA’s existing and
growth assets
Need for expanded gas
generation,
transportation and
storage capacity for grid
firming and peaking
S M L
Contracted
power
generation, gas
transmission
and storage
Business growth
Contribution to grid decarbonisation
by enabling renewables
Business strategy
Scenario analysis and financial
resilience testing of assets within
business planning
Remote-grid renewables
with gas generation
firming and battery
storage to support
electrification and
reduced diesel use by
mining and industrial
customers
S M L
Contracted
power
generation, gas
transmission,
future energy
Business growth
Contribution to customer
decarbonisation
Business strategy
Customer engagement on energy
solutions
Increased gas demand
in some sectors to
support decarbonisation,
e.g. steel manufacturing
S M L
Gas
transmission
and storage
Business growth
Contribution to customer
decarbonisation
Business strategy
Customer engagement on energy
solutions
Scenario analysis applied in business
planning
Markets
Opportunity
Timeframe
Business area
affected
Potential benefit
Management plans
Government incentives
and grants for renewable
energy and
decarbonisation projects
S M L
Gas
transmission
and storage
Power
generation
Electricity
transmission
Subsidies/co-investment that de-
risk energy infrastructure
investments
Infrastructure availability certainty
for customers
Development plans for energy
infrastructure
Increased electricity
demand from mining
sector to supply critical
minerals and
decarbonise operations
S M L
Contracted
power
generation
Gas
transmission
Electricity
transmission
Business growth
Contribution to customer
decarbonisation
Business growth opportunities for
new common-use electricity
transmission in the Pilbara
Business strategy
Development plans for energy
infrastructure
New energy solutions
such as hydrogen,
biomethane and CO2
pipeline transport to
support carbon capture,
use and storage
S M L
Gas
transmission
and storage
Future energy
Reduced Scope 1 emissions
Reduced end-user emissions
Contribute to economy-wide
decarbonisation
Business growth
Future energy program
Resilience
Opportunity
Timeframe
Business area
affected
Potential benefit
Management plans
Supply chain emissions
S M L
Group-wide
Reduced Scope 3 emissions
Scope 3 goals included in 2025 CTP
Biomethane, hydrogen
and CO2 transport to
support carbon capture,
utilisation and storage
S M L
Gas
transmission
and storage
Power
generation
Future energy
Improved resilience to transition risk
and exposure to transition
opportunities
Future energy program
FY25 ANNUAL REPORT APA GROUP 91
Physical climate risks and resilience
APA has mitigation controls in place to address current
and foreseeable physical climate risks as evidenced by
our physical climate risks assessments for a number of
our assets, and we continue to monitor and update our
risk mitigation strategies to maintain resilience to ensure
the safety and reliability of our operations.
Physical climate risks are assessed and catalogued in our
corporate risk framework (refer to page 60). At the asset
level, hazard management studies are performed and
include consideration of physical climate risks in the
creation of associated response and mitigation plans.
Our enterprise risk procedures support the re-evaluation
of site-specific risks should risks increase or operations be
impacted.
Over the past three years, we have undertaken a phased
program to assess the exposure of APA's assets to
foreseeable future physical climate risks. This included
portfolio-level screening of exposures to physical climate
risks across APA's assets and detailed assessments on
prioritised assets.
1 We did deep-dive assessments on six
priority assets in FY24 (refer to APA's Climate Report 2024).
2
In FY25, we undertook additional detailed assessments
for a further three assets: the Newman Power Station,
the associated 120 km, 220 kV electricity transmission
line and the Chichester Solar Farm. These assets have
interdependencies and are co-located in the Pilbara
region of Western Australia. Climate-related impact
pathways were identified and validated, risks classified
based on APA’s Enterprise Risk Management Ratings,
and existing risk mitigations and residual risk levels
assessed. The assessments covered direct risks to
assets and ‘beyond the fence’ risks to critical supporting
infrastructure, communities and the environment.
Risks and risk migrations identified are summarised
in the tables below, with residual risk levels found to be
negligible to low.
3
APA's recently constructed and commissioned Port
Hedland Solar and Battery Project demonstrates how
climate resilience is addressed through design. The
solar farm is designed to withstand extreme wind
speeds associated with cyclones, which are prevalent
in the region. The battery energy storage system is
capable of responding to the unique intermittency
of renewable energy in the Pilbara.
Our 2025 CTP summarises the overall findings from
our physical climate risk assessments over FY23-FY25.
Newman Power Station
Climate hazard
Emerging risk
Existing mitigations/controls
Residual risks
High ambient
temperatures
Impacts on critical equipment such as
transformers and gas turbines
Impacts on health and safety
Changes in maintenance requirements
Redundant capacity to meet customer
demand
Health and safety protocols and training
Servicing and maintenance programs
Negligible to low
Bushfire risk
Disruptions to operations for repair of
damaged components
Easement maintenance and ground
patrols
Negligible
Lightning strikes
Damage to switchyard
Facility designed to withstand impacts
from lightning events
Negligible
121 km 220 kV electricity transmission line between Newman Power Station and Roy Hill Substation
Climate hazard
Emerging risk
Existing mitigations/controls
Residual risks
High ambient
temperatures
May degrade electrical components at an
increased rate
Servicing and maintenance protocols
Negligible
Wildfires
May present an exposure to overhead
transmission lines
Ground patrols and easement
maintenance
Low
Lightning strikes
Damage to conductors and system outages
Weather condition and fault monitoring;
rapid maintenance team dispatch
Negligible
Chichester Solar Farm
Climate hazard
Emerging risk
Existing mitigations/controls
Residual risks
High ambient
temperatures
Reduced efficiency of solar panels
Degraded electrical components requiring
more frequent maintenance
Inspection, testing and maintenance
programs
Negligible to low
Severe convective
storms / tropical
cyclones
Wind-driven rain, which damages electrical
components
Water ingress to enclosures damaging
electrical components
Redundant capacity to meet contractual
obligations
Equipment enclosures with ingress
protection
Low
Drought stress
Dust accumulation may reduce the power
output of modules
Regular monitoring of panel efficiency for
potential power loss
Low
Wildfires
May traverse near or through the site
Easement control and bushfire
management
Negligible
1
Assets were prioritised for deep-dive assessments considering their exposure to present-day and future physical climate risks and their criticality to APA.
Non-climate factors considered included activity type, lifespan and location, asset replacement and business interruption costs, risk to people and the
environment, energy system inter-dependencies and strategic plans.
2
Diamantina Power Station Complex, South West Queensland Pipeline, Mondarra Gas Storage, Badgingarra Solar and Wind Farms, and Basslink.
3
To support the resilience testing of our assets to future physical climate impacts, we selected long-term time horizons centred on 2050 and 2080 and higher
global emission scenarios. Climate projections were considered for two Shared Socioeconomic Pathways (SSP) scenarios used by the Intergovernmental
Panel on Climate Change, namely ‘medium’ (SSP2/RCP4.5) and ‘high’ (SSP5/RCP8.5) emissions scenarios.
CLIMATE REPORT (CONTINUED)
92 APA GROUP FY25 ANNUAL REPORT
Metrics and targets
To achieve our overarching net zero operational emissions goals, we made a series of interim commitments in our
Climate Transition Plan. In FY25, we made continued progress towards achieving these commitments.
FY25 progress: Gas infrastructure
Greenhouse gas emissions reduction from gas infrastructure
Metric
Target
FY25 Performance
Greenhouse gas emissions
reduction from gas
infrastructure
(% reduction in net Scope 1 and Scope 2
emissions relative to FY21 base year)
$30% (net) by 2030
13.3% (net) reduction (including offsets)*
6.5% (gross) emissions reduction*
*Excluding 'non-reportable methane abatement'
Across APA’s gas infrastructure assets, gross emissions in
FY25 were 517,292 t CO2-e, which is a 6.5% gross reduction
from FY21 levels of 553,512 t CO2-e (adjusted) emissions.
Including the surrender of offsets, our net emissions were
479,710 t CO2-e, a 13.3% net reduction relative to FY21. Gas
infrastructure emissions, including emissions reductions
reportable under the National Greenhouse and Energy
Reporting scheme (NGERs) and offsets surrendered, are
shown in the graph below. For APA’s climate data,
including details of offsets and LGCs surrendered, refer to
our FY25 Sustainability Data Book.
Gas infrastructure emissions (adjusted) (net) (kt CO
2-e)
554
535
516
498
480
387
247
250
248
256
255
298
275
268
242
225
Methane
Combustion
Scope 2
Target emissions
FY21
FY22
FY23
FY24
FY25
FY30
The waterfall chart shows changes in our emissions in
FY25 relative to FY21. Abatement reportable under NGERs
was achieved through operating our compressor
networks more efficiently and procuring 100% renewable
energy through surrendering LGCs. Compressor
efficiency-related abatement was estimated to have
been achieved through embedded processes to optimise
compressor fuel gas efficiency on our major gas
transmission pipelines.
Our methane abatement supports achieving our gas
infrastructure and methane emissions reduction targets.
This abatement is not able to be accounted for within
APA’s existing regulatory measurement techniques, which
are primarily based on NGER Method 1. Including this 'non-
reportable methane abatement' (17.4 kt CO2-e), a net
emissions reduction of 16.5% is estimated to have been
achieved in FY25 relative to FY21.
Our growth projects since FY21 have included the East
Coast Grid Stage 2, the Northern Goldfields Interconnect
(NGI) and the Kurri Kurri Lateral Pipeline. Excluding
emissions from these growth projects, and taking non-
reportable methane abatement and offsets into account,
our underlying emissions would have reduced by 22.3%
from FY21 levels.
Gas infrastructure emissions and emission reductions for FY25, relative to FY21 (kt CO2-e) (footnotes in brackets)
554
(35)
(27)
(17)
(7)
(38)
430
32
462
17
480
FY21 GHG
emission
(adjusted,
gross)
Network-
related
reductions
(4)
Abatement:
compressor
efficiency
(2)
Abatement:
methane
(non-
reportable)
100%
renewable
electricity
(LGCs)
Offsets
FY25 net
underlying
emissions
(1)
FY21-25
growth (3)
FY25 GHG
emissions
(net
including
methane
abatement)
Abatement:
methane
(non-
reportable)
FY25 GHG
emissions
(net)
1
Underlying emissions refers to emissions excluding emissions associated with growth and including non-reportable methane abatement and offsets. There
is a complex interaction between growth and emissions abatement and offsets. This means that the underlying emissions outcome of a 22.3% reduction in
FY25 may have been lower if growth projects were not delivered.
2
Emissions reductions due to the compressor fuel gas efficiency initiative targeting our SWQP, GGP and MSP assets, was determined by 1) calculating the
difference in fuel gas intensity (t CO2-e/MWh) between the FY21 base year and the current year and multiplying this value by the FY21 pipeline gas
throughput; then 2) subtracting the product from (1) from FY21 fuel gas emissions.
3
Emissions associated with growth projects include emissions associated with the East Coast Grid Expansion (specifically the Cromarty and Dulbydilla
compressors on SWQP, and the Milne and Round Hill compressors on the MSP), the Northern Gasfields Interconnect (includes fugitive methane emissions and
the Ambania compressor station) and the Kurri Kurri Lateral Pipeline.
4 Network-related emissions reductions are mainly due to reduced compressor fuel gas consumption as a result of changed demand.
FY25 ANNUAL REPORT APA GROUP 93
q30%
q13.3% (6.5% gross
reduction)
q22.3%
q16.5%
8,920
9,040
8,972
9,252
9,192
6,244
Methane
Target emissions
FY21
FY22
FY23
FY24
FY25
FY30
FY25 progress: Reducing methane emissions
Metric
Target
FY25 Performance
Operational methane
emissions reductions
(% reduction in operational methane
emissions relative to FY21 base year)
$30% by 2030
3.1% increase in (gross) emissions relative to FY21, excluding
non-reportable methane emissions abatement
3.9% decrease (gross) emissions relative to FY21, including
non-reportable methane emissions abatement
Our methane emissions in FY25 were 9,192 tonnes of
methane, 3.1% higher relative to our FY21 base year
methane emissions of 8,920 tonnes (adjusted), excluding
non-reportable methane abatement. This increase was
principally due to the NGI growth project, which
accounted for an increase of about 242 tonnes, with our
methane abatement achievements not reportable under
NGERs. The NGI Pipeline connects the Dampier to Bunbury
Natural Gas Pipeline to the Goldfields Gas Pipeline,
supporting Western Australia’s resources sector with
access to gas to support renewables as customers
decarbonise.
Methane emissions (adjusted) (tonnes)
We will progressively implement our enhanced methane
reporting method (refer page 84). This will enable
methane abatement to be included in our voluntary
emissions inventory to support achievement of our 2030
methane emissions reduction target. With non-reportable
methane emissions abatement included, we have
achieved a 3.9% reduction in gross methane emissions in
FY25 compared to FY21 as shown in the waterfall chart.
We progressed our portfolio of methane emissions
abatement initiatives, including valve upgrades and
compressor seal upgrades, with methane emissions
reductions also achieved as a result of improved
compressor fuel efficiency.
We have completed compressor seal upgrades across
around three-quarters of our reciprocating compressor
units with the remaining units having lower run hours and
methane emissions. We also commenced upgrading to
valves with high-bleed controllers, with 47 valves
upgraded in FY25. For further details on our methane
abatement initiatives refer to page 83.
For a complete breakdown of APA’s climate data, refer to
our FY25 Sustainability Data Book.
Methane emissions (adjusted) and methane abatement for FY25, relative to FY21 (tonnes)
1
8,920
242
30
9,192
(341)
(225)
(55)
8,570
FY21 Methane
emissions
(adjusted
gross)
Growth (NGI)
Other factors
FY25 Methane
emissions
Compressor
fuel efficiency
Compressor
seal upgrades
Valve
upgrades
FY25 methane
emissions
(including
methane
abatement)
CLIMATE REPORT (CONTINUED)
94 APA GROUP FY25 ANNUAL REPORT
1 Methane emissions associated with growth are due to the NGI. Methane abatement shown is not accounted for within our assured emissions reporting.
q30%
(Non-reportable methane emissions abatement)
p3.1%
q3.9%
FY25 progress: Power generation infrastructure
Metric
Goal
FY25 Performance
Greenhouse gas emissions
intensity reduction from power
generation infrastructure
(% gross emissions intensity
reduction)
$35% by 2030
$11.6% gross emissions intensity
reduction
Our power generation emissions intensity depends on the
amount of electricity we generate and the mix of thermal
and renewable generation. Integrating renewable
generation with GPG generally reduces the amount of
time gas generation operates, with renewable energy
generation used to address customer demand when
available. This reduces the emissions intensity of our
power generation.
Progress towards our 2030 emissions intensity reduction
goal for power generation is being delivered through
operational efficiencies at gas generation and renewable
energy generation assets, and through our investments in
renewables to meet customer demand. This includes our
build-out of renewables as part of remote-grid bundled
energy solutions.
Power generation infrastructure emissions intensity
(adjusted) (gross) (t CO2-e/MWh)
0.25
0.38
0.38
0.37
0.34
0.34
Gross emissions intensity
Goal emissions intensity
FY21
FY22
FY23
FY24
FY25
FY30
Gross power generation operational emissions intensity
was 11.6% lower compared to FY21, a similar outcome to
that achieved in FY24. Power generation projects have a
long delivery timeline so there will not always be annual
intensity reduction improvements. Power generation
emissions intensity outcomes in FY25 were supported by:
•
commissioning of Port Hedland Solar and Battery
Project in Western Australia as part of our 1 GW+
renewables development pipeline in the Pilbara to
support our mining customers' energy and
decarbonisation plans
•
enhanced operational outcomes with increased
generation at our Dugald River Solar Farm at Mount Isa
in Queensland
•
lower thermal utilisation at Diamantina Power Station
(DPS), with optimisation projects implemented to
achieve system improvements, reducing the emissions
intensity of our generation.
For a complete breakdown of APA’s climate data, refer to
our FY25 Sustainability Data Book.
Power generation emissions intensity for FY25, relative to FY21 (t CO2-e/MWh)
0.38
(0.013)
(0.005)
(0.008)
(0.014)
(0.012)
0.34
FY21 Base Year
Chichester Solar
Farm (CHSF)
Daandine Power
Station
Diamantina
Power Station
Dugald River Solar
Farm
Port Hedland
Power Station
FY25 emissions
intensity
FY25 ANNUAL REPORT APA GROUP 95
q35%
FY25 progress: Electricity transmission
Enabling renewables through transmission infrastructure development
Metric
Target
FY25 Performance
Renewable infrastructure enabled
through electricity transmission
investment (MW)
Contribute positively to grid
decarbonisation measured by MW of
enabled renewable infrastructure
Awarded priority project status to
deliver electricity transmission in two
priority corridors for the development
of new common-use electricity
transmission infrastructure in the
Pilbara region
Electricity transmission is a key enabler of Australia’s
transition to renewables. APA has a portfolio of high-
voltage electricity transmission assets and is pursuing
electricity transmission projects that connect with our
existing and growth assets, and which support our ability
to meet customer needs.
In December 2024, APA was awarded priority project
status by the Western Australian Government, to deliver
electricity transmission in two of four priority corridors
identified for the development of new common-use
electricity transmission infrastructure in the Pilbara region
in Western Australia. This is one way we are playing our
part in the transition to a lower emissions economy.
Reducing emissions we can control
1
Supporting Action
FY25 Performance
Active program to reduce emissions we can control
and apply best practice management techniques
to manage line losses
$99% in emissions we can control
1
(primarily achieved through the purchase and surrender
of LGCs to meet our 100% renewable electricity
procurement target)
Since FY23, we have addressed our Scope 2 emissions
from grid electricity consumption by procuring
100% renewable energy through surrendering LGCs.
Our total Scope 1 and Scope 2 emissions in FY25 were
99% lower than in FY21. Other minor sources of emissions
from our electricity transmission operations are Scope 1
emissions due to sulphur hexafluoride (SF6) leakage and
diesel use.
The initial planning and design phase of greenfield
electricity transmission infrastructure presents the
greatest opportunity to avoid transmission system
losses. In FY25, we adopted a guideline to support avoiding
electricity transmission line and system losses for all new
greenfield assets. The guideline aims to establish loss
reduction as a specific project objective, identifying
opportunities for minimising transmission line losses that
will also consider the return on the investment case.
Electricity transmission infrastructure emissions
(excluding line losses) (adjusted) (kt CO2-e)
4.17
4.08
0.09
0.08
0.06
Scope 2
Scope 1
FY21
FY22
FY23
FY24
FY25
FY25 progress: Renewable electricity procurement
Metric
Target
FY25 Performance
Renewable electricity as a
percentage of total electricity
consumed
(% of renewable electricity)
100% from FY23 onward
100% achieved
APA met the 100% renewable electricity target for the first
time in FY23 by surrendering LGCs to reach zero Scope 2
emissions for purchased and acquired electricity.
To continue delivering our 100% renewable target in FY25,
APA surrendered 16,000 LGCs from Stockyard Hill Windfarm
in Victoria’s Central Highlands.
APA will continue to assess the best options for meeting
the 100% renewable electricity procurement target as
conditions change, including bundled power purchase
agreements. Our FY24–FY30 Renewable Electricity
Procurement Strategy sets out a phased approach,
sourcing LGCs from the market in the near term and
exploring power purchase agreements and/or the use of
self-generated LGCs over time.
CLIMATE REPORT (CONTINUED)
96 APA GROUP FY25 ANNUAL REPORT
1 Line losses are the major source of emissions from electricity transmission and are included in APA’s emission’s inventory. Reductions are largely determined
by the rate of grid decarbonisation, not by direct APA intervention. On this basis, line losses are not included in our electricity transmission infrastructure goal.
FY25 progress: Scope 3 and value chain emissions
1
2
Metric
Our Commitment
FY25 Performance
Offsets surrendered to address our
business travel emissions
(% of business travel emissions)
100%
100% achieved
Scope 3 emissions
Overall our gross Scope 3 emissions were 636,284 t CO2-e
in FY25, which is approximately 18% lower compared to FY21.
Our net Scope 3 emissions were 629,401 t CO2-e in FY25,
with an equivalent volume of 6,883 t CO2-e of ACCUs
surrendered to fully offset our business travel.
Scope 3 emissions by major category (net) (kt CO2-e)
Other Categories (Waste, Business travel and Employee commuting)
Category 15 - Investments
Category 11 - Use of sold products
Category 3 - Fuel and energy-related activities
Categories 1 and 2 - Purchased goods and services (incl capital goods)
FY21
FY22
FY23
FY24
FY25
0
300
600
900
In FY25, further improved our Scope 3 data accuracy,
including changing to new emissions factors to more
accurately represent APA’s Scope 3 Category 1 and 2
emissions. Further information is provided in the FY25
Greenhouse Gas Emissions and Energy Calculation
Methodology.
Our largest sources of Scope 3 emissions are fuel- and
energy-related activities (Category 3),
3 investments
(Category 15)
4 and purchased goods and services
(including capital goods) (Categories 1 and 2). Together
these categories contributed around 97% of our Scope 3
emissions in FY25. Emissions from the use of sold products
(Category 11) have decreased, principally due to gas sale
contracts expiring.
Emissions associated with the extraction, production and
transportation of fuels and energy consumed by facilities
under APA's operational control (Category 3) have
increased due to the acquisition of the Port Hedland and
Newman Power Stations in FY24. The commissioning of the
Western Outer Ring Main (WORM) project resulted in
emissions reductions, which we estimate to exceed the
estimate established through the environmental
approvals process (refer page 86).
Emissions related to purchased goods and services
(including capital goods) (Categories 1 and 2) are heavily
influenced by the delivery of growth projects, and as such,
fluctuate from year to year. This is highlighted by Category
1 and 2 emissions peaking in FY23 as APA delivered several
major projects, including the WORM, East Coast Gas Grid
expansion and Dugald River Solar Farm.
Scope 3 Category 15 emissions relate to emissions from
power generation infrastructure and gas infrastructure we
own but do not operate. Fluctuations in gas infrastructure
emissions are observed based on market dynamics.
For a complete breakdown of APA’s climate data, refer to
our FY25 Sustainability Data Book.
End-user emissions
End-user emissions are not APA's Scope 3 emissions as
defined by the Greenhouse Gas (GHG) Protocol’s Scope 3
Standard. They are emissions associated with natural gas
products we transport but do not sell to the end-user.
These are typically gas producer and retailer Scope 3
emissions.
End-user emissions were 62.8 Mt CO2-e in FY25, which is of
a similar level to our FY23 emissions and lower than in FY21
due to lower volumes of gas delivered. In FY25, we
undertook a comprehensive review of delivery point gas
meters and assessed end-user emissions by sector (refer
page 105).
Further information is provided in the FY25 Greenhouse
Gas Emissions and Energy Calculation Methodology.
FY25 ANNUAL REPORT APA GROUP 97
1 As part of our efforts to reduce Scope 3 emissions, in our 2023 Climate Report we committed to addressing all business travel emissions through surrendering
offsets.
2 We have established medium-term Scope 3 goals and a long-term ambition, and identified pathways to our medium-term goals. Refer to our 2025 CTP.
3 Emissions associated with the extraction, production and transportation of fuels and energy consumed by facilities under APA’s operational control (not
already captured in Scope 1 or Scope 2).
4Emissions from assets we own but do not operate.
FY25 progress: Zero direct emission vehicle fleet
Metric
Goal
FY25 Performance
Zero direct emissions vehicles
(% of fleet)
100% by 2030
Decision taken to retire this goal
Vehicle emissions account for less than 0.25% of APA’s total
Scope 1 emissions. The deployment of electric vehicles
(EVs) in Australia, and availability of a suitable charging
network in the areas we operate in, has not occurred at
the pace we had originally envisaged.
In FY25, we reassessed the likely availability in Australia of
suitable mid-sized pick-up and commercial EVs. This
assessment identified that suitable fully EVs will be
unavailable by 2027. Given our fleet contract period, this
would not support the transition of our fleet within the
envisaged timeframe.
The remoteness of our assets, range limitations and
availability of suitable charging infrastructure create
further challenges for the deployment of an EV fleet even if
mid-sized pick-up EV models were available. Related
health and safety risks include remote exposure and
stranding risks, and charging safety.
We are therefore retiring our 100% zero direct emission fleet
2030 goal. We will continue to monitor the commercial
electric vehicles market and review available vehicles at
the end of lease. Under our 2025 CTP, vehicle emissions will
be addressed under our overall targets and goals
The charging infrastructure installed at our Dandenong
facility in Victoria in FY24, and our existing electric vehicle
leases continue to be used to inform our fleet
considerations.
FY25 progress: Safeguard Mechanism compliance and data uplift
Safeguard Mechanism compliance
APA’s GGP, SWQP and Newman Power Station were
covered by the Australian Government's Safeguard
Mechanism in FY24 and subject to declining facility
baselines under the scheme across this period. Our
Diamantina and Port Hedland Power Stations are also
covered under the Safeguard Mechanism by a sectoral
baseline.
In FY24, we surrendered ACCUs to meet our baseline
requirement on GGP and were issued SMCs on our SWQP
and Newman assets.
For the FY25 reporting period, we have assessed that
SWQP and Newman Power Station will remain covered by
the scheme but GGP has dropped marginally below the
100 kt CO2-e threshold and is not a covered facility for this
reporting period.
In FY25, we surrendered ACCUs to meet our baseline for
SWQP and have assessed that we will be issued SMCs for
Newman Power Station due to below-baseline emissions
performance. Any residual compliance requirements will
be met prior to the regulatory deadline in March 2025 and
reported on in our 2026 climate disclosures.
Refer to our FY25 Sustainability Data Book for details.
Consistent with our 2022 CTP, and where it is reasonable to
do so, APA is prioritising emissions avoidance and
reduction to meet Safeguard Mechanism baselines. This
prioritisation of emissions avoidance and reduction is re-
affirmed in our 2025 CTP.
Enhancing our greenhouse gas emissions data and
disclosures
In FY25, we commissioned our Emissions Data Reporting
Project (EDRP) utilising Salesforce Net Zero Cloud, which
was the culmination of a 24-month project. The platform
automates the majority of our data flows and provides
end-to-end reporting for Scope 1, Scope 2, Scope 3 and
End-user emissions.
The new platform supports reduced reporting lead times,
which has allowed integration of our Climate Report into
our Annual Reporting suite. It will also support an increase
to the frequency of internal reporting on emissions
performance and progress towards our targets and goals.
The FY25 Sustainability Data Book includes a range of
additional disclosures, including for methane emissions
where we have disclosed data for the first time on three
assets utilising our enhanced methane reporting
approach. The FY25 Greenhouse Gas Emissions and
Energy Calculation Methodology provides the basis for
how we compile our emissions inventories.
APA continued to enhance its approaches to emissions
data. For our Scope 3 emissions, we have adopted
leading-practice emission factors and adjusted our
approach to the treatment of financial data. The
combination of these items has enhanced our reporting
for Scope 3 Category 1 and 2 emissions. Refer to the our
FY25 Greenhouse Gas Emissions and Energy Calculation
Methodology for further details.
CLIMATE REPORT (CONTINUED)
98 APA GROUP FY25 ANNUAL REPORT
Climate-related risk management
Our risk management framework supports the
identification, management, escalation and reporting of
climate-related risks and opportunities. By implementing
an effective risk management framework, APA’s Board and
Executive Leadership Team ensure strategies are in place
to manage potential risks and opportunities.
Processes for identifying and assessing
climate-related risks and opportunities
We identify, assess and manage climate-related risks
and opportunities at a Group-wide, divisional, asset
and project level, in line with APA's risk management
framework. Climate-related risks and opportunities are
categorised under:
•
transition risks (market, technology, policy and legal,
and reputational risks)
•
physical risks (acute and chronic)
and mapped to our overall corporate risk categories.
We use scenario analysis to assess physical and transition
risk, and actively monitor for opportunities from emerging
technology and market developments. Opportunities to
increase the resilience of our assets are identified as part
of the risk assessment and management processes for
our assets. In line with the TCFD recommendations, we
consider risks across three time horizons:
•
short term (0–3 years): corresponds mainly to risks
and opportunities impacting APA’s existing operations
and active projects
•
medium term (4–10 years): mainly impacts on project
investment decisions
•
long term (greater than 10 years): contributes to
formulating our broader business strategy and
planning for energy transition and technology trends.
When undertaking risk assessments, we assign ratings
based on APA’s Enterprise Risk Matrix of likelihood and
impact. Likelihood ratings are assigned on a five-point
scale (from rare to frequent), with guidelines based on
frequency of occurrence (for chronic, recurrent events
like extreme temperature days) or probability (for single,
acute events, e.g. a severe cyclone).
Impacts are also rated on a five-point scale (from
minimal to catastrophic), taking into account the
expected consequences for health and safety,
environment, heritage and social outcomes; operational
capability; our people; regulatory compliance; reputation
and customer relations; and financial impact.
We report on climate as an enterprise level risk within
quarterly reporting to the Risk Management Committee.
Processes for managing climate-related
risks and opportunities
Climate-related risks are managed in accordance with
APA’s risk management framework. Risks are assigned
an inherent rating based on their likelihood and impact
in the absence of controls, and a residual rating once
adjusted for controls. Where current controls are not able
to manage the residual risk rating to the acceptable
target levels, risk treatment options are to be applied.
APA's climate-related risk approach
Examples of
Financial Impacts
Transition Risk
Financial Drivers and Potential/Future
Climate Change Impacts
Revenue
Market and technology shifts
Consumer and market demand (e.g. consumer demand
shifting to lower emission alternatives)
Capex
Challenging policy and legal
requirements Increasing
reputational pressure
Property-, plant- or equipment-related costs
(e.g. emission reduction technologies)
Operating expenses
Changing policy and legal
requirements
Regulatory and compliance costs (e.g. emissions
monitoring, carbon pricing)
FY25 ANNUAL REPORT APA GROUP 99
Market
Technology
Policy and Legal
Reputational
Acute
Chronic
Transition risks
Physical risks
Scenario Analysis and Risk
and Opportunity Assessment
Strategic Planning and
Risk Management
Financial Impacts and
CTP Implementation
APA Climate Supporting Action
Resource Efficiency
Energy Source
Products and Services
Markets
Resilience
Opportunities
Climate-related governance
APA’s Board and Executive Leadership Team are
committed to pursuing the targets, goals and supporting
actions in APA’s CTP in accordance with good corporate
governance, including transparency and accountability.
We believe robust corporate governance policies and
practices enable APA to create long-term value for
securityholders and meet the expectations of other
stakeholders.
Board oversight and reporting
The APA Board is responsible for reviewing and
considering potential impacts of climate-related
risks and opportunities across our organisation. Our
governance framework enables critical climate-related
risks and opportunities to be escalated through the
Executive Leadership Team (ELT) or (with the support
of our Board Committees) to the Board.
Our Directors engage with our securityholders and other
stakeholders to provide awareness of APA’s climate-
related risks and opportunities, and to enable feedback
on our climate change approach. They use a range of
formal and informal channels, including our annual
meeting, engagements with securityholders and other
key stakeholders and site visits.
In FY25, we engaged extensively with our securityholders
on climate-related matters, including the development of
our refreshed CTP, participating in over 40 specific ESG -
related meetings throughout the year. This engagement
helped us to understand our securityholders' perspectives
as well as providing an opportunity to discuss APA's
progress to date and role in Australia's energy transition.
During our engagement, we also received positive
feedback on the progress we have made in enhancing
our disclosures, particularly in the areas of methane
emissions and actions, Scope 3 emissions, carbon pricing,
offsets and physical climate risk assessments. Feedback
received and our response is detailed in our 2025 CTP.
Climate-related governance
The Board is accountable to our securityholders for the
proper management of APA’s business and affairs. The
Board has ultimate responsibility for the approval and
oversight of our CTP. To assist with its responsibilities, the
Board has established five standing committees and
approved their charters. The specific responsibilities of the
Board and each standing committee are detailed in APA’s
Corporate Governance Statement.
The APA Board and its relevant Committees regularly
consider climate-related issues and opportunities
through business planning and strategy reviews,
investment decisions, policy-setting and monitoring
progress against commitments.
Charters outlining the accountabilities of the Board
and its Committees with regard to overseeing climate-
related risks and opportunities can be found on the
corporate governance pages of APA’s website.
The Safety and Sustainability Committee assists the Board
in overseeing climate-related matters including progress
in implementing the CTP. APA’s safety and sustainability
strategies take account of both opportunities and risks,
with a view to building long-term competitive advantage
and resilience for APA. The Committee meets quarterly
with additional out-of-cycle meetings as required.
Board FY25 focus areas
The APA Board and its relevant Committees regularly
consider climate-related issues and opportunities through
business planning and strategy reviews, investment
decisions, policy-setting and monitoring progress against
commitments.
Key Board actions on climate-related matters in FY25
included:
•
overseeing the development of APA’s 2025 CTP
•
approving APA’s Climate Report 2024
•
monitoring progress against APA’s 2022 CTP through
quarterly updates from the Safety and Sustainability
Committee
•
approving an updated version of APA’s Climate Policy
•
reviewing quarterly climate-related updates, including
information about climate-related risks, opportunities
and relevant developments.
Further information on climate-related matters addressed
by the Board and Committees in FY25 is included on page
101 of this report.
Climate-related governance structure
Board
Audit and Finance
Committee
Risk Management
Committee
Safety and
Sustainability
Committee
People and
Remuneration
Committee
Nomination
Committee
Chief Executive Officer and Managing Director
Executive Leadership Team
Sustainability Management Committee
Portfolio Emissions Management Group / CTP Development Advisory Group
CLIMATE REPORT (CONTINUED)
100 APA GROUP FY25 ANNUAL REPORT
APA Board Committees and climate-related actions in FY25
Role
Key FY25 climate-related oversight topics
APA Group Board
The Board is accountable to our securityholders for the proper
management of APA’s business and affairs.
Oversaw and monitored APA’s progress against the commitments
detailed in our 2022 CTP, supported by the Safety and Sustainability
Committee.
Approved the Climate Report 2024.
Oversaw the development of APA's refreshed CTP to be released in
FY26, supported by the Safety and Sustainability Committee.
Safety and Sustainability Committee
Assists the Board to oversee safety and sustainability matters,
including with respect to the health and safety of APA’s people,
contractors and the public, and environment and cultural
heritage priorities.
Monitored APA’s identification of sustainability (including climate) risks,
opportunities and strategies for the business.
Reviewed APA’s environmental performance and greenhouse gas
emission inventory and tracking performance indicator trends.
Oversaw the preparation of APA’s sustainability reporting (including
assurance activities and processes for verification of the integrity of
that reporting).
Approved the review of APA’s Climate Policy.
Received quarterly climate-related updates, including information
about:
•
performance against targets and goals
•
emission reduction technologies
•
progress on CTP commitments
•
climate-related emerging issues, including policy developments
•
approaches to emissions measurement (particularly methane)
•
investor engagement
•
management governance related to climate
•
spend of the net zero emissions reduction initiatives.
Oversaw the planning for the 2025 Climate Transition Plan.
Monitored APA's readiness activities for disclosure against the
upcoming AASB S2 requirements.
Audit and Finance Committee
Assists the Board to oversee APA’s corporate reporting and
internal controls, including monitoring the effectiveness,
performance, independence and objectivity of the internal
and external auditors.
Reviewed the assurance and verification process for the APA Annual
Reporting suite, including the Climate Report.
Risk Management Committee
Assists the Board to monitor, oversee, inform and assess
effective risk and compliance management across the APA
Group.
Monitored the performance of the business, including strategic and
operational enterprise risks related to the energy market transition,
against APA’s Risk Appetite Statement, including the approval of a
revised Risk Appetite Statement.
This included targeted discussions on assets and transactions, and
their risks as they pertain to sustainability, including climate.
Undertook a deep-dive into the Climate enterprise-level risk through a
joint meeting between the Safety and Sustainability Committee and
Risk Management Committee.
FY25 ANNUAL REPORT APA GROUP 101
Board skills and diversity
The Board determines and periodically reviews the mix of
skills, experience and backgrounds required to effectively
govern APA’s business while considering the expertise and
diversity of existing Directors. When appointing a new
Director, the Board considers candidates who will balance
and complement those qualities and address any
potential skills gaps given APA’s strategic direction.
The skills and experience of our Directors with respect to
climate and sustainability matters position APA well to
actively participate in and support Australia’s energy
transition. As at 30 June 2025, all of our Directors (in FY25)
have direct skills, knowledge and experience related to the
energy transition and climate-related matters.
The Board skills matrix in APA’s Corporate Governance
Statement includes a full breakdown of Directors’ skills and
experience, and level of competency, in areas of strategic
importance to APA, including the energy transition and
climate.
The Board’s collective knowledge is supplemented by
management briefings and internal and external subject
matter experts on topics such as climate, the energy
transition and sustainability.
Executive remuneration linked to climate-related
performance
The CEO and all Executive Leadership Team (ELT) members
had at least 10% of their FY25 Short-Term Incentive (STI)
determined based on APA’s performance against priorities
aligned with implementing APA’s Climate Transition Plan.
Refer to APA’s FY25 Remuneration Report contained in
APA’s Annual Report 2025 for further information on the STI.
Similarly, for the FY26 STI, all ELT will have at least 10% of their
STI determined based on APA's performance against
priorities aligned with implementing APA's refreshed 2025
CTP. This includes annual targets for the achievement of
gas infrastructure structural abatement.
Management’s role in managing climate-
related risks and opportunities
Delivery and refresh of APA's CTP
Our ELT is responsible for overseeing the development and
refresh of our CTP. In FY25, we established an internal
senior Advisory Group to advise on the development of
this CTP. This group, involving leaders from across the
business, assisted in ensuring that appropriate
consideration was given to strategic and operational
issues and implications, and provided advice to the ELT as
the accountable Management decision-making body.
Management structures governing the delivery of our CTP
include the Sustainability Management Committee (SMC)
and the Portfolio Emissions Management Group. The SMC
oversees the execution and effectiveness of the CTP,
monitors delivery metrics and receives regular updates on
progress against CTP commitments and related emerging
issues and policy developments.
In FY25, General Managers across APA responsible for the
delivery of commitments within the 2022 CTP, were
members of a Portfolio Emissions Management Group.
Their role was to manage the timely execution of CTP
commitments and respond to any emerging issues.
Management provided quarterly climate-related updates
to the Board Safety and Sustainability Committee.
APA’s Investment Committee, which is responsible for
reviewing investment recommendations, considered the
CTP when assessing investment decisions.
Integration of climate into business processes
APA’s Sustainability Team stewarded our approach to
climate and advised on integrating climate change
objectives into APA’s business strategy, decision-making
and business processes. The Sustainability Team is also
responsible for APA climate policies, frameworks and
standards, building organisational capability related to
climate change, informing management of climate-
related issues, technical advice and support, and internal
and external climate reporting.
The 2022 CTP highlighted several key business processes
as priority areas for the development or update of critical
controls to manage climate-related risk. In FY25, we
continued to embed business process controls to support
our emissions-reduction activities. This included
establishing a pipeline of abatement projects and
embedding the consideration of options to minimise
emissions from new infrastructure. Further details on these
initiatives are provided in our 2025 CTP.
Transparency and assurance
APA is committed to providing securityholders and other
external stakeholders with timely, credible and transparent
reporting. Australia’s energy transition is a dynamic area
so we are continually enhancing our reporting to better
meet stakeholder expectations.
We are committed to reporting annually on progress
against our CTP commitments. From FY25, our climate
reporting will be integrated within the APA Annual
Reporting suite, with our climate data included within APA’s
FY25 Sustainability Data Book. Our FY25 Greenhouse Gas
Emissions and Energy Calculation Methodology allows
stakeholders to see the methodology we apply when
calculating our data.
Our climate data is prepared internally by relevant subject
matter experts, verified by relevant APA executives and
senior managers, and approved by the APA Safety and
Sustainability Committee and Board prior to disclosure. For
our FY25 climate data, we have obtained reasonable
assurance on key voluntary operational emissions
disclosure items and limited assurance on a range of
other metrics, including Scope 3 emissions. Refer to the
Assurance Statement on page 106 for further details.
CLIMATE REPORT (CONTINUED)
102 APA GROUP FY25 ANNUAL REPORT
Additional climate information
Expanded climate-related performance information
In our 2022 CTP, we established measurable and comparable key climate metrics to monitor and report against (refer to
the Metrics and targets section for further information).
Where there are no targets in the Plan, we have chosen to further increase transparency through additional reporting
on key metrics, as contained in this section. This provides our Board, management and external stakeholders with a fuller
picture of APA’s climate-related performance.
FY25 progress and performance against additional key climate metrics
Key climate metric
UoM
Information source
GHG emissions and energy
Absolute Scope 1, Scope 2 and Scope 3 and end-user emissions
•
Scope 1
•
Scope 2
•
Scope 3
•
Delivered end-user emissions
t CO2-e
Refer to APA’s FY25
Sustainability Data Book
Power generation emissions intensity
t CO2-e/MWh
Energy production and consumption
PJ
Percentage of Scope 1 emissions covered under emissions-limiting
regulations
%
Climate-related risks and opportunities
Percentage of revenue from assets that support the transition to a
low carbon economy
%
Transition risks and
opportunities are addressed in
our 2025 CTP, with metrics to
be considered in preparation
for AASB S2 disclosures from
FY26
Percentage of revenue from activities vulnerable to transition to a
low carbon economy
%
Capital and operating expenditure on climate-related risks and
opportunities
$
Refer to Investing in our net
zero goal section
Carbon price
Internal carbon price
$/t CO2-e
Refer to Internal carbon
pricing approach section
Offsets
Other offset holdings purchased and surrendered
#
Refer to APA’s FY25
Sustainability Data Book,
Offsets tab
Climate-linked executive remuneration
Percentage of executive remuneration linked to climate-related
objectives
%
Refer to Executive
remuneration linked to
climate-related performance
section
FY25 ANNUAL REPORT APA GROUP 103
Greenhouse gas emissions data summary
Operational GHG emissions by asset class and total, including performance against targets and goals
1
Year-end 30 June
UoM
FY25
FY24
FY23
FY22
FY21
Gas infrastructure
Scope 1
t CO2-e
517,292
543,917
598,218
617,205
558,744
Scope 2 (market method)
2
t CO2-e
0
0
0
10,636
8,660
Total Scope 1 and Scope 2 (market method) gross
t CO2-e
517,292
543,917
598,218
627,840
567,404
Total Scope 1 and Scope 2 (adjusted) gross
3
t CO2-e
517,292
543,917
533,237
554,925
553,512
Gas infrastructure emissions change compared to base
year (adjusted) (gross)
t CO2-e
(36,220)
(9,595)
(20,275)
1,412
%
-6.5 %
-1.7 %
-3.7 %
0.3 %
Carbon offsets surrendered
#
(37,582)
(45,590)
(16,763)
(19,537)
0
Total Scope 1 and Scope 2 (adjusted) (net)
t CO2-e
479,710
498,327
516,474
535,388
553,512
Gas infrastructure emissions change compared to base
year (net)
t CO2-e
(73,802)
(55,185)
(37,038)
(18,125)
%
-13.3 %
-10.0 %
-6.7 %
-3.3 %
Power generation infrastructure
Scope 1
t CO2-e
1,345,312
1,361,334
781,029
875,741
871,083
Scope 2 (market method)
t CO2-e
0
0
0
2,566
2,138
Total Scope 1 and Scope 2 (market method) gross
t CO2-e
1,345,312
1,361,334
781,029
878,307
873,221
Total Scope 1 and Scope 2 (adjusted) gross
4
t CO2-e
1,345,312
1,361,334
1,512,622
1,657,281
1,488,179
Power generation intensity (adjusted)
t CO2-e/MWh
0.34
0.34
0.37
0.38
0.38
Power generation emissions intensity change compared to
base year (adjusted) gross
t CO2-e/MWh
(0.045)
(0.044)
(0.017)
0.001
%
-11.6 %
-11.3 %
-4.5 %
0.2 %
ACCUs issued
#
63,088
53,575
Total Scope 1 and Scope 2 (adjusted) (net)
t CO2-e
1,408,400
1,414,909
Electricity transmission infrastructure
Scope 1
t CO2-e
55
76
91
31
152
Scope 2 (market method) - line loss
t CO2-e
139,281
129,718
137,643
76,737
68,264
Scope 2 (market method) grid electricity
t CO2-e
0
0
0
2,755
2,729
Total Scope 1 and Scope 2
(market method including line losses) (gross)
t CO2-e
139,336
129,794
137,733
79,523
71,145
Total Scope 1 and Scope 2
(market method excluding line losses) (gross)
t CO2-e
55
76
91
2,786
2,881
Total Scope 1 and Scope 2
(adjusted including line losses) (gross)
5
t CO2-e
139,336
129,794
137,733
151,111
142,733
Total Scope 1 and Scope 2
(adjusted excluding line losses) (gross)
5
t CO2-e
55
76
91
4,076
4,172
Electricity transmission emissions (Scope 1 and Scope 2
(adjusted excluding line loss) change compared to base
year (gross))
t CO2-e
(4,116)
(4,095)
(4,081)
(96)
%
-99 %
-98 %
-98 %
-2 %
Total
Scope 1
t CO2-e
1,862,659
1,905,327
1,379,338
1,492,977
1,429,979
Scope 2 (market method) - line loss
t CO2-e
139,281
129,718
137,643
76,737
68,264
Scope 2 (market method) grid electricity
t CO2-e
0
0
0
15,956
13,527
Total Scope 1 and Scope 2 (market method) gross
t CO2-e
2,001,940
2,035,046
1,516,981
1,585,670
1,511,770
Total Scope 1 and Scope 2 (adjusted) gross
t CO2-e
2,001,940
2,035,046
2,183,593
2,363,316
2,184,424
Carbon offsets surrendered
#
(37,582)
(45,590)
(16,763)
(19,537)
0
ACCUs issued
#
63,088
53,575
0
0
0
Total Scope 1 and Scope 2 (adjusted) (net)
2,027,446
2,043,031
2,166,830
2,343,779
2,184,424
CLIMATE REPORT (CONTINUED)
104 APA GROUP FY25 ANNUAL REPORT
Operational Scope 1 GHG emissions by greenhouse gas split by asset class and total
6
Year-end 30 June
UoM
FY25
FY24
FY23
FY22
FY21
Total
Methane (CH4) (adjusted)
7
t
9,192
9,252
8,972
9,040
8,920
Scope 3 GHG emissions by category
Year-end 30 June
UoM
FY25
FY24
FY23
FY22
FY21
Upstream (gross)
Category 1: Purchased goods and services
(including capital goods)
t CO2-e
186,094
213,459
325,956
280,898
171,425
Category 3: Fuel and energy-related activities
t CO2-e
234,640
238,590
205,675
215,237
214,642
Category 5: Waste
t CO2-e
648
759
1,104
1,023
1,660
Category 6: Business travel
t CO2-e
6,883
7,757
5,646
2,265
1,832
Category 7: Employee commuting
8
t CO2-e
2,407
2,451
2,812
2,512
2,316
Downstream (gross)
Category 11: Use of sold products
t CO2-e
9,265
23,103
52,375
111,331
159,610
Category 15: Investments
t CO2-e
196,347
178,479
221,716
240,205
220,186
Total Upstream and Downstream (gross)
t CO2-e
636,284
664,598
815,284
853,473
771,671
Carbon offsets surrendered - due to 100% business travel
being offset
#
(6,883)
(7,757)
(5,646)
Total Upstream and Downstream (net)
t CO2-e
629,401
656,841
809,638
853,473
771,671
End-user GHG emissions
Year-end 30 June
UoM
FY25
FY24
FY23
FY22
FY21
End-user emissions (upstream and downstream)
t CO2-e
62,775,374
64,035,270
62,329,409 66,834,654
66,286,223
Refer to APA's FY25 Sustainability Data Book for further information.
1 All calculations are based on Scope 2 market method, except when indicated otherwise.
2 The market-based method calculates electricity emissions in the context of electricity choices based on APA’s electricity supplier or product, e.g. the purchase
of LGCs. Refer to the FY25 Greenhouse Gas Emissions and Energy Calculation Methodology for further details.
3 Adjusted re-baselining associated with Orbost divestment, NGER method changes and historical reporting errors. Refer to FY25 Sustainability Data Book for
further detail.
4 Adjusted re-baselining associated with acquisition of Newman and Port Hedland Power Stations. Refer to FY25 Sustainability Data Book for further detail.
5 Adjusted re-baselining associated with Basslink acquisition. Refer to the FY25 Sustainability Data Book for further detail.
6 These values are not adjusted due to re-baselining activity and use the Global Warming Potentials (GWP) from the Intergovernmental Panel on Climate
Change Assessment Report 5 based on a 100-year timeframe.
7 Adjusted re-baselining associated with Orbost divestment, Basslink acquisition, Newman and Port Hedland Power Station acquisition, NGER method changes
and historical reporting errors. Refer to Sustainability Data Book for further detail.
8 Work from home emissions are included in Category 7: Employee commuting for FY25.
FY25 ANNUAL REPORT APA GROUP 105
Climate assurance statement
CLIMATE REPORT (CONTINUED)
106 APA GROUP FY25 ANNUAL REPORT
Climate assurance statement (continued)
FY25 ANNUAL REPORT APA GROUP 107
Climate assurance statement (continued)
CLIMATE REPORT (CONTINUED)
108 APA GROUP FY25 ANNUAL REPORT
Climate assurance statement (continued)
FY25 ANNUAL REPORT APA GROUP 109
Climate assurance statement (continued)
CLIMATE REPORT (CONTINUED)
110 APA GROUP FY25 ANNUAL REPORT
Climate assurance statement (continued)
FY25 ANNUAL REPORT APA GROUP 111
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 2025. 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
Varya Davidson
1 March 2025
James Fazzino
21 February 2019
Nino Ficca
1 September 2023
David Lamont
1 October 2024
Samantha (Sam) Lewis
1 October 2024
Rhoda Phillippo
1 June 2020
Debra (Debbie) Goodin
1 September 2015. Retired 24 February 2025
Peter Wasow
19 March 2018. Retired 24 October 2024
The Company Secretaries of the Responsible Entity during the year were Amanda Cheney and Bronwyn Weir.
Executive Leadership changes:
•
Group Executive Strategy and Corporate Development: Ross Gersbach ceased as Group Executive Strategy and
Corporate Development effective 11 October 2024, and retired from APA on 31 October 2024. Beth Griggs was
appointed as Group Executive Strategy and Corporate Development effective 11 October 2024.
•
Group Executive Infrastructure Delivery: Kevin Lester ceased as Group Executive Infrastructure Delivery on 16 June
2025, and retired from APA on 30 June 2025. Robert (Rob) Evans was appointed as Group Executive Infrastructure
Delivery effective 16 June 2025.
•
Group Executive Electricity Transmission: Following APA's decision in June not to participate in the current tender
processes for major, stand-alone electricity transmission projects on the east coast, Vin Vassallo will leave the
business in October 2025 and contribute to the business in an advisory capacity until that time.
•
Group Executive Legal and Governance: Amanda Cheney will leave APA on 31 August 2025. Amanda's portfolio will be
allocated across Garrick Rollason and Beth Griggs as part of a broader structural reorganisation.
Subsequent events
Divestment of gas distribution operations and maintenance entities
On 19 August 2025, the Group executed an agreement to divest its Networks business, including entities which undertake
gas distribution operations and maintenance business, to Australian Gas Infrastructure Group (AGIG). The transaction is
expected to complete around the second quarter of FY26, subject to satisfaction of conditions precedent, including
separation and completion readiness activities. As at 30 June 2025, the Networks business disposal group has been
classified as held for sale..Refer to Note 11 of the APA Infrastructure Trust Financial Report for further details on the
classification and its impact on the financial statements.
Final distribution declaration
On 20 August 2025, the Directors declared a final distribution of 30.0 cents per security ($391 million) for APA Group, an
increase of 1.7%, or 0.5 cent per security over the previous corresponding period (30 June 2024: 29.5 cents). This comprises
a distribution of 22.61 cents per security from APA Infrastructure Trust and a distribution of 7.39 cents per security from
APA Investment Trust.
The APA Infrastructure Trust distribution represents 6.47 cents per security fully franked profit distribution and 16.14 cents
per security capital distribution. The APA Investment Trust distribution represents a 1.10 cent per security unfranked profit
distribution and 6.29 cents capital distribution. The distribution is expected to be paid on 10 September 2025.
Other than noted above and as disclosed elsewhere in this report, in the interval between 30 June 2025 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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
112 APA GROUP FY25 ANNUAL 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 to 62 of the Annual Report and forms part of this Directors’ Report.
Directors
Information on Directors and Company Secretary
For information relating to the qualifications and experience of Directors and Company Secretaries refer to pages 66 to
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
Orora Limited
Since April 2022
Adam Watson
—
—
Varya Davidson
—
—
James Fazzino
Tassal Group Limited
May 2020 to November 2022
Qube Holdings Limited
Since February 2024
Nino Ficca
—
—
David Lamont
Telstra Group Limited
Since December 2024
Samantha (Sam) Lewis
CSL Limited
Since January 2024
Nine Entertainment Co. Holdings Limited
March 2017 to May 2025
Orora Limited
March 2014 to March 2024
Aurizon Holdings Limited
February 2015 to October 2023
Rhoda Phillippo
Dexus Funds Management Limited
Since February 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, nine Board meetings, four Risk Management Committee meetings, four Audit and Finance Committee
meetings, five People and Remuneration Committee meetings, six Safety and Sustainability Committee meetings, and
two Nomination Committee meetings were held.
People and
Audit and
Risk
Safety and
Board
Remuneration
Finance
Management
Sustainability
Nomination
Committee
Committee
Committee
Committee
Committee
Directors
A
B
A
B
A
B
A
B
A
B
A
B
Michael Fraser
9
9
—
—
—
—
—
—
6
6
2
2
Adam Watson
9
9
—
—
—
—
—
—
—
—
—
—
Varya Davidson
1
4
4
1
1
—
—
—
—
2
2
—
—
James Fazzino
9
9
—
—
4
4
4
4
6
6
2
2
Nino Ficca
9
9
5
5
—
—
3
3
6
6
2
2
David Lamont
2
8
8
3
3
3
3
—
—
5
5
1
1
Samantha (Sam) Lewis
3
8
8
—
—
3
3
3
3
—
—
1
1
Rhoda Phillippo
9
9
5
5
4
4
4
4
—
—
2
1
Debra (Debbie) Goodin
4
5
5
—
—
3
3
3
3
—
—
2
2
Peter Wasow
5
2
2
3
3
1
1
1
1
—
—
1
1
1
Varya Davidson appointed as a Director effective 1 March 2025.
2
David Lamont appointed as a Director effective 1 October 2024.
3
Samantha (Sam) Lewis appointed as a Director effective 1 October 2024.
4 Debra (Debbie) Goodin retired as a Director effective 24 February 2025.
5
Peter Wasow retired as a Director effective 24 October 2024.
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 2025 is 466,330.
FY25 ANNUAL REPORT APA GROUP 113
Directors’ relevant interests in APA securities
Fully paid securities as at
Fully paid securities as at
Directors
1 July 2024
Securities acquired
Securities disposed
30 June 2025
Michael Fraser
106,489
—
—
106,489
Adam Watson
97,400
56,133
—
153,533
Varya Davidson
1
25,116
—
—
25,116
James Fazzino
34,298
13,114
—
47,412
Nino Ficca
12,500
21,788
—
34,288
David Lamont
2
40,407
14,593
—
55,000
Samantha (Sam) Lewis
3
7,600
15,000
—
22,600
Rhoda Phillippo
20,325
1,567
—
21,892
Debra (Debbie) Goodin
4
27,726
—
—
27,726
Peter Wasow
5
29,547
—
—
29,547
1
Varya Davidson appointed as a Director effective 1 March 2025.
2
David Lamont appointed as a Director effective 1 October 2024.
3
Samantha (Sam) Lewis appointed as a Director effective 1 October 2024.
4 Debra (Debbie) Goodin retired as a Director effective 24 February 2025. Balance as at date of ceasing to be a Director.
5
Peter Wasow retired as a Director effective 24 October 2024. Balance as at date of ceasing to be a Director.
As at 30 June 2025, Adam Watson held 779,897 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.
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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
114 APA GROUP FY25 ANNUAL REPORT
Remuneration Report
The Remuneration Report is set out on pages 116 to 134 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 at page 201.
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 27 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 26 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 20 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
Chairman
Sydney, 20 August 2025
Adam Watson
Chief Executive Officer and Managing Director
FY25 ANNUAL REPORT APA GROUP 115
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 2025.
APA has delivered strong growth in earnings, and continued growth in distributions. Underlying EBITDA increased by
6.4% to $2,015m and our distribution increased by 1.8% to 57.0 cents per security. Our Free Cash Flow (FCF) increased
by 0.9% to $1,083m.
FY25 executive remuneration incentive outcomes
Reflecting FY25 financial and non-financial performance, the FY25 Short-Term Incentive (STI) outcome was 72.6% of
maximum (108.9% of target) for the CEO/MD, and between 72.6% and 75.9% of maximum (108.9% and 113.9% of target) for
other Key Management Personnel (KMP) roles.
The FY23 Long-Term Incentive (LTI) was tested at the end of FY25. The relative Total Shareholder Return (TSR)
performance metric was not met and the Return on Capital (ROC) metric was met in full. This resulted in 50% of the LTI
becoming available to vest according to APA’s LTI vesting schedule. The achievement of the ROC metric in full illustrates
that APA continues to balance the delivery of earnings growth with prudent capital management.
FY25 executive remuneration changes
In the annual remuneration review in August 2024, changes were made to Total Fixed Remuneration (TFR) for the Group
Executive (GE) Operations and the GE Energy Solutions. No change to TFR was made for the other KMP roles in this annual
review. There were no changes made to incentive opportunities.
At the two year anniversary of the CEO/MD's time in role (November 2024), the CEO/MD's TFR was increased to $1,662,000
(3.88% increase) and STI opportunity was increased from a target opportunity of 60% of TFR (maximum of 90%) to a target
opportunity of 80% of TFR (maximum of 120%) bringing total remuneration closer to market benchmarks. The changes
effective 1 November 2024 were the first changes made to the CEO/MD's remuneration package since permanent
appointment to the CEO/MD role in 2022.
The CEO/MD's remuneration is now reviewed each year as part of the annual APA review cycle. In the August 2025
annual review the Board reviewed and adjusted the CEO/MD's TFR (increased by 2.29% to $1,700,000) and increased STI
target opportunity to 90% (and maximum increased to 135% of TFR) and LTI remuneration opportunity (increased to 170%
of TFR) to further align to market benchmarks. The changes in November 2024 and August 2025 continue to focus on
long-term value creation with the CEO/MD's remuneration package placing a high weighting on the LTI component.
As approved by securityholders at the 2024 Annual General Meeting (AGM), for the FY25 LTI grant, following feedback
from securityholders, the relative TSR peer group was expanded to include additional companies of a similar size that
are in similar or adjacent sectors to APA. The relative TSR vesting schedule was also re-aligned to market practice (50%
vesting at 50th percentile and 100% vesting at 75th percentile). The details of the FY25 LTI grant are outlined in section 4.3.
The year ahead
During the year, the Board continued to review and monitor remuneration governance, structures and performance
metrics to ensure alignment with APA's strategic objectives. There are no material changes to the remuneration
approach for FY26.
I hope you find this Remuneration Report informative. We look forward to your support and any questions at the 2025
AGM.
David Lamont
People and Remuneration Committee Chair
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
116 APA GROUP FY25 ANNUAL REPORT
Remuneration report contents
1.
Individuals covered by the
Remuneration Report
117
2. Executive summary
118
3. FY25 performance and executive incentive
outcomes
120
4. Executive remuneration policy
and framework
125
5. Executive KMP contracts
128
6. Non-executive Director remuneration
129
7.
Remuneration governance
130
8. Statutory tables
131
1. Individuals covered by the Remuneration Report
The Remuneration Report (the Report) for APA for FY25 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
Varya Davidson
Director
Part year from 1 March 2025
James Fazzino
Director
Full year
Nino Ficca
Director
Full year
David Lamont
Director
Part year from 1 October 2024
Samantha Lewis
Director
Part year from 1 October 2024
Rhoda Phillippo
Director
Full year
Former NEDs
Debra (Debbie) Goodin
Director
Part year to 24 February 2025
Peter Wasow
Director
Part year to 24 October 2024
Executive KMP
Adam Watson
Chief Executive Officer and
Managing Director (CEO/MD)
Full year
Petrea Bradford
Group Executive (GE) Operations
Full year
Darren Rogers
GE Energy Solutions
Full year
Garrick Rollason
Chief Financial Officer
Full year
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
FY25 ANNUAL REPORT APA GROUP 117
2. Executive summary
2.1. Remuneration strategy
The Board recognises the important role remuneration plays in supporting and implementing the achievement of APA’s
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.
MARKET COMPETITIVE
Provide competitive
rewards to attract,
motivate and retain highly
skilled executives.
BUSINESS STRATEGY
Drive delivery of APA's
strategy to be the partner
of choice in delivering
infrastructure solutions for
the energy transition.
CULTURE
Reinforce APA behaviour
expectations and drive a
high performing, customer
focused organisation that
is committed to safety &
care.
SECURITYHOLDER
ALIGNMENT
Ensure executive
performance and
behaviours align with the
interests of
securityholders.
2.2. Executive remuneration snapshot
Fixed Pay
STI
LTI
Purpose
To be market competitive to attract,
motivate and retain individuals.
To reward executives for achieving
APA's annual performance targets.
To focus executives on the
achievement of APA’s strategy and
creating value and alignment with
the experience of securityholders.
FY25 approach
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.
Executive KMP roles are
benchmarked against similar roles in
companies with a comparable
market capitalisation.
Subject to meeting an EBITDA
gateway, performance is assessed
against a Company Scorecard of
financial and non-financial
measures which determine STI
outcomes for the CEO/MD and
Executive KMP.
Each Executive KMP member is also
assessed on divisional priorities
which determines the individual STI
outcome.
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
FY25
remuneration
outcomes
Based on a review of market
benchmarking data, the following
fixed pay changes were made during
FY25:
•
The CEO/MD's Fixed pay was
increased by 3.88% to $1,662,000.
•
The GE Operations fixed pay was
increased by 10.18% to $920,000.
•
The GE Energy Solutions fixed pay
was increased by 4.35% to
$960,000.
No change to fixed pay was made for
the Chief Financial Officer during the
period.
The outcomes were:
•
CEO/MD: 72.6% of maximum
(108.9% of target).
•
Other Executive KMP: ranged from
72.6% and 75.9% of maximum
(108.9% and 113.9% of target)
•
The STI outcomes for the APA
Executive Leadership Team had a
wider range of differentiated
performance outcomes, noting
the Executive KMP are a subset of
this team.
Section 3.2 provides details on
scorecard outcomes.
The FY23 LTI award was tested at
30 June 2025 resulting in an outcome
of 50% vesting.
These rights will vest over 3 years
with 1/3 vesting in August 2025, and
the remaining 2/3 vesting in equal
tranches in 2026 and 2027.
Section 3.5 provides details on results
against the relative TSR and ROC
measures.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
118 APA GROUP FY25 ANNUAL REPORT
Minimum
security holding
requirement
APA’s minimum security holding requirement requires Executive KMP 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.
Included in the minimum security holding requirement calculation are any performance rights which have been
performance tested as at 30 June 2025, but which may be yet to practically vest and convert to securities. 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.
As at 30 June 2025, all KMP meet the minimum security holding requirement.
Reward time
horizon
Pay Mix
The pay mix graph below displays the proportion of fixed vs variable remuneration (STI and LTI) as at 30 June 2025
when the incentives are achieved at maximum (i.e. the STI at maximum, and the LTI calculated at face value
assuming 100% vesting).
FY25 ANNUAL REPORT APA GROUP 119
27.0%
33.3%
32.4%
25%
40.5%
41.7%
Fixed Pay
Max STI
LTI
—%
20%
40%
60%
80%
100%
CEO/MD
Other Executive KMP
Base salary,
superannuation
and other benefits
Subject to meeting
the EBITDA gateway,
STI outcomes are
assessed against a
Company
Scorecard, and Exec
KMP (excl CEO/MD)
are also assessed
on divisional
priorities.
Cash (2/3)
CEO: 120% of fixed
pay (maximum
opportunity)
KMP: 75% of fixed
pay (maximum
opportunity)
Restricted Securities (1/3)
(Only applies where the minimum
security holding requirement
has not been met)
Performance Rights tested at the end of 3 year
performance period against Relative TSR (50%)
and Return on Capital (50%)
1/3 vests
CEO: 150% of fixed
pay (maximum
opportunity)
KMP: 125% of fixed
pay (maximum
opportunity)
1/3 vests
1/3 vests
Year 1
Year 2
Year 3
Year 4
Year 5
Fixed pay
STI
LTI
3. FY25 performance and executive incentive outcomes
3.1. Company performance
The table below summarises APA’s financial performance for the past 5 years.
Measure
FY25
FY24
FY23
FY22
FY21
1
Underlying EBITDA($m)
2
2,015
1,893
1,725
1,692
1,629
Profit after tax including significant items ($m)
129
998
287
260
1
Profit after tax excluding significant items($m)
129
119
287
240
279
Free cash flow per security (cents)
83.0
83.6
90.7
91.6
76.4
Distribution per security (cents)
57.0
56.0
55.0
53.0
51.0
Closing security price at 30 June ($)
8.17
7.99
9.69
11.27
8.90
CEO STI outcome (% of maximum)
72.6
62.7
78.9
66.1
66.4
Since listing in 2000, APA has paid an interim and full year distribution every year. Our distribution of 57.0 cents per
security for FY25 represents a 1.8% increase on FY24.
3.2. FY25 STI scorecard outcomes – CEO/MD & Company Scorecard
The Board reviewed the performance of the CEO/MD and the Executive KMP against the FY25 Company Scorecard which
includes a set of KPIs that were set at the start of the year. The underlying EBITDA gateway was exceeded, and therefore
the STI was available to be earned.
Based on the Board’s assessment, it was determined that the Company Scorecard outcome was a holistic reflection of
FY25 performance, and determined an exercise of Board discretion was not needed. The table below summarises the
outcomes against each KPI, where KPIs were assessed against a threshold (50%), target (100%) and stretch (150%)
outcome.
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
are based on budget for the year
and an assessment of the potential
risks and opportunities to inform
the range of threshold and stretch.
Underlying EBITDA outcome was $2,015m (above
budget and towards the top end of guidance)
against a threshold of $1,960m, a target of
$1,990m and a stretch of $2,020m.
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 free cash flow
targets are based on the budget for
the year and an assessment of the
potential risks and opportunities to
inform the range of threshold
and stretch.
Free cash flow was $1,083m against a threshold
of $982m, a target of $1,034m and a stretch of
$1,086m.
Value Creation (30% weighting)
Value Creation KPIs focussed on key
strategic opportunities and capital
investments that support the execution
of our customer focussed strategy.
Each of these opportunities have
strong links to APA's financial
performance in terms of revenue
opportunities, customer growth,
efficiency and costs.
APA continued strong progress against its key
strategic opportunities and capital investments
to support growth.
Despite delays in remote grid projects which
meant these were not able to be progressed as
planned, other key initiatives showed strong
momentum which position APA well for future
value growth, including the:
• Successful acquisition of the Atlas to Reedy
Creek pipeline.
• Strong progress on the Beetaloo project and
engagement with land owners.
• Continued strong implementation of the GRID
Solutions Program.
• Roll-out of APA's High Performance Agenda
(HPA) with promising early outcomes, and
• Positive regulatory outcomes related to South
West Queensland Pipeline and Basslink.
Measures and rationale
FY25 outcome
Further detail
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
120 APA GROUP FY25 ANNUAL REPORT
1 Restated for the impact of the payroll review provision.
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.
Non-financial
Climate (10% weighting)
Ensure progress against the priorities of
APA's Climate Transition Plan, including
achieving emissions reduction targets,
developing APA's refreshed Climate
Transition Plan 2.0, as well as progress
against other climate related projects.
Delivery against priorities set for FY25 exceeded
target. APA closed out all commitments under
its first Climate Transition Plan (CTP), reduced
emissions above target levels and established
a pipeline of emissions abatement opportunities.
APA's CTP 2.0 was developed during the year,
reconfirming APA's 2030 gas infrastructure
emissions reduction target and energy intensity
goal. CTP 2.0 confirmed APA's goal to achieve
net zero operational emissions by 2050.
Health, Safety, Environment & Heritage (10% weighting)
To improve safety, wellbeing,
environment 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 the execution of the HSEH priorities
and psychosocial risk actions) was strong and
assessed between Target and Stretch.
The performance against the lag indicators
showed continued progress on reducing
overdue compliance orders. However, there
was one Tier 1 process safety incident in the gas
transmission business and one actual serious
harm incident which impacted assessed
performance.
Culture (10% weighting)
Support the culture of APA through
our approach to Inclusion & Diversity,
our employee engagement and
robustness of succession planning.
APA made strong progress on the work to
embed a high performance culture that is
customer focussed and committed to the
safety and care of our people. The performance
for this KPI was specifically assessed against a
subset of the culture metrics being employee
engagement, gender representation and the
strengthening of our ELT succession plan, and
there was mixed performance against these
specific KPI's.
Our engagement survey score was equal
to FY24 and a positive result in the context of
the change occurring in the business during
the year, but was below the target we set for
the year.
We continued our focus on improving gender
representation, however, due in part to
a reduction in recruitment volume, some of our
gender representation targets fell short of our
targets for the year.
We made strong progress on our succession
plans for our ELT roles.
Customer and Reputation (10% weighting)
Maintain APA's reputation across
internal and external stakeholders
(including customers), as measured
through RepTrak and SEC Newgate
surveys.
Reputation is measured against the RepTrak
Priority Stakeholder Score, the RepTrak General
Score vs peers, and the SEC Newgate Priority
Stakeholder Trust Score. Each of these scores
exceeded our targets for the year.
FY25 Company Scorecard outcome
72.6% of Maximum
108.9% of Target
The Board considered the CEO/MD’s individual contribution to these results, the behaviours demonstrated and any other performance
throughout the year (not already reflected in the Company Scorecard). As a result of this, no changes were made to the assessment to
apply to the CEO/MD's outcome.
FY25 CEO/MD STI outcome
72.6% of Maximum
108.9% of Target
Measures and rationale
FY25 outcome
Further detail
FY25 ANNUAL REPORT APA GROUP 121
3.3. FY25 STI performance scorecard outcomes – other Executive KMP
STI outcomes for other Executive KMP are determined based on:
•
The FY25 Company Scorecard outcome shared with the CEO/MD;
•
Achievement of divisional priorities; and
•
Demonstration of APA behaviours and core expectations.
Other Executive KMP outcomes ranged from 72.6% to 75.9% of maximum (108.9% to 113.9% of target). There are similar
outcomes for the other Executive KMP given the Company Scorecard is the primary driver determining an individuals
outcome . The STI outcomes for the complete APA Executive Leadership Team had a wider range of differentiated
performance outcomes, noting the Executive KMP are a subset of this team.
Commentary on Ms Petrea Bradford’s performance
Overall outcome of 113.9% of target, with key contributions being the achievement of the FY25 Company Scorecard outlined on the
previous page, and:
•
Strong performance in transforming APA's operations, delivering material efficiencies, and leading key technology implementations.
•
Leading APA's efforts to drive cost reductions in our operations.
Commentary on Mr Darren Rogers’ performance
Overall outcome of 108.9% of target, with key contributions being the achievement of the FY25 Company Scorecard outlined on the
previous page, and:
•
Built a strong and encouraging pipeline of developments across Remote Grid, Gas Power Generation and Gas Transmission.
•
Continued strong results in recontracting and engagement with customers.
Commentary on Mr Garrick Rollason’s performance
Overall outcome of 108.9% of target, with key contributions being the achievement of the FY25 Company Scorecard outlined on the
previous page, and:
•
Leading APA's efforts to drive cost reductions.
•
Led significant enhancements to APA's technology function to strengthen digital and data processes.
3.4. STI outcomes
The table below provides an overview of the STI outcomes for FY25 for current KMP. There were no restricted securities
granted as part of the FY25 STI Outcomes for KMP given all KMP met the minimum security-holding requirement.
STI earned
STI forfeited
Executive KMP
STI $ Outcome
% of target
% of maximum
Foregone $
% of maximum
A Watson
3
1,312,299
108.9 %
72.6 %
495,275
27.4 %
P Bradford
523,940
113.9 %
75.9 %
166,060
24.1 %
D Rogers
522,720
108.9 %
72.6 %
197,280
27.4 %
G Rollason
500,940
108.9 %
72.6 %
189,060
27.4 %
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
122 APA GROUP FY25 ANNUAL REPORT
3 Adam Watson's STI Target for FY25 was pro-rated for changes to TFR and STI opportunity effective 1 November 2024.
3.5. LTI outcomes
Performance measurement approach
APA’s LTI is designed to focus Executive KMP on the achievement of APA’s 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.
FY23 LTI testing and vesting
Performance period is from 1 July 2022 to 30 June 2025.
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 2025, 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
20th 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 4.3 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 procedural 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 an asset is being added to the calculation at
the acquisition price which represents a non-depreciated fair value. 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, FY21 and FY22 LTI plans being adjusted as no transaction in the United States
was pursued (which had been assumed in the targets) and adjusted to include the Basslink and Pilbara transactions (which were
not included in the original targets). The impacts of adjustments on historical ROC performance testing is outlined below:
FY20 LTI
FY21 LTI
FY22 LTI
Adjustment to targets
Increase to targets
Increase to targets
Decrease to targets
Vesting outcome vs original targets
100%
100%
100%
Vesting outcome vs adjusted targets
68.73%
100%
100%
Impact of adjusting targets on vesting outcome
Lower outcome
No change
No change
•
For the FY23 LTI, the original ROC targets set were 12.2% (threshold) and 12.5% (maximum). This was set before the Basslink and Pilbara
transactions were known. Consistent with the approach in prior years, the Board adjusted the FY23 LTI targets to 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. The adjustment adds to ROC calculation the acquisition
price of the new assets which represent a non-depreciated fair value and lowers the target. The adjustment to ROC targets to
factor in the Basslink and Pilbara transactions results in the ROC outcomes vesting in full.
Threshold
Maximum
Actual
Vesting outcome
Original targets
12.2%
12.5%
11.55%
100%
Adjusted targets
10.7%
11.0%
Overall 50% percent of the FY23 LTI vested to the CEO/MD and other participants
FY24 LTI due to be tested at the end of FY26
The FY24 LTI plan is due to be performance tested at 30 June 2026.
The ROC targets for the FY24 LTI were set post the Basslink and Pilbara Energy transactions being concluded.
At this time, there is no adjustment expected to be made to the targets. However, should a transaction eventuate,
consistent with APA's approach to date, the Board would apply a consistent approach to those targets and adjust for
any significant changes related to transaction activity.
FY25 ANNUAL REPORT APA GROUP 123
3.6. FY25 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 FY25.
•
STI deferred equity released – awards from prior years which have met time restrictions as at 30 June 2025, but will be
released in August 2025 following announcement of APA's FY25 financial results.
•
LTI equity vested & released – FY21 LTI (Tranche 3), FY22 LTI (Tranche 2) and FY23 LTI (Tranche 1) that have met
performance and time restrictions as at 30 June 2025, but will vest and convert to securities in August 2025 following
announcement of APA's FY25 financial results.
Given this is not a statutory disclosure, only current KMP are included.
Executive KMP
Fixed pay $
4
Cash STI $
5
STI deferred
equity released
$
6
LTI equity vested
& released $
7
Other
8
Total $
A Watson
1,641,333
1,312,299
173,216
557,822
—
3,684,670
P Bradford
920,000
523,940
—
—
384,384
1,828,324
D Rogers
956,630
522,720
—
394,279
—
1,873,629
G Rollason
920,000
500,940
—
—
174,696
1,595,636
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
124 APA GROUP FY25 ANNUAL REPORT
4 Fixed pay is inclusive of cash salary, employer superannuation, and any salary sacrifice items (including any relevant fringe benefits tax).
5 Cash STI refers to the cash portion of the STI, relating to performance in FY25. Payment will be made in September 2025.
6 STI deferred equity released is based on a VWAP of $8.4253 (being the 20 trading days leading up to 30 June 2025).
7 Relates to rights vesting and converting to securities for Tranche 3 of the FY21 Performance Rights plan, Tranche 2 of FY22 Performance Rights plan and
Tranche 1 of the FY23 Performance Rights plan. Valued based on a VWAP of $8.4253 (being the 20 trading days leading up to 30 June 2025).
8 Relates to sign on rights which were disclosed in the FY24 Remuneration Report. Value based on the security price at close of trade on the day of vesting.
4. Executive remuneration policy and framework
4.1. 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.
4.2. STI plan
In addition to the information covered in section 2, further detail on the operation of the FY25 STI plan is provided below:
Feature
Description
Target
opportunity
CEO/MD: 80% of fixed pay
Other Executive KMP: 50% of fixed pay
Maximum
Opportunity
CEO/MD: 120% of fixed pay
Other Executive KMP: 75% of fixed pay
Performance
period
One year.
Performance
measures
A Company Scorecard consisting of financial and non-financial metrics determines performance outcomes for the
CEO/MD and Other Executive KMP. Behaviours are considered for all KMP, and Other Executive KMP are also assessed
on divisional priorities.
Delivery
Cash (2/3) paid at the end of FY25 (in September 2025) and deferred equity (1/3) delivered as Restricted Securities
which vest after two years (in August 2027). The deferral only applies 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.
4.3. LTI plan
In addition to the information covered in section 2, further detail on the operation of the FY25 LTI plan is provided below:
Opportunity
CEO/MD: 150% of fixed pay
Other Executive KMP: 125% of fixed pay
Performance
period
1 July 2024 to 30 June 2027
Grant date
4 November 2024
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 20 trading days to 30 June 2024. 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
Ampol
Atlas Arteria Group
Aurizon Holdings
Dexus
Goodman Group
GPT Group
Lend Lease Group
Mirvac Group
Origin Energy
Qube Holdings
Santos
Scentre Group
Stockland Corporation
Telstra Group
TPG Telecom
Transurban Group
Vicinity Centres
Viva Energy Group
Woodside Energy Group
The Board retains discretion to vary the relative TSR peer group at the end of the performance period to reflect
delisting, mergers and other corporate actions.
The relative TSR component vests in accordance with the following scale:
Feature
Description
FY25 ANNUAL REPORT APA GROUP 125
Hurdle
Vesting outcome
Below 50th percentile
Nil
At 50th percentile
50%
Between 50th and 75th percentile
Straight line pro-rata vesting between 50% and 100%
At 75th 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.
As has been APA’s practice to date, the approach is to set targets and disclose ROC targets at the beginning of the
Performance Period based on the outlook for the business at the time. If there are any significant changes to the
outlook related to M&A transactions (i.e. acquisitions or divestments) during the Performance Period then as a
matter of process at the end of the period APA adjusts the ROC targets to account for these changes. This is to
ensure:
•
a like-for-like comparison of targets (which may not include the impact of a transaction if it was unknown when
the targets were set) with actual performance at the end of the period (which includes the impact of any
transactions), and
•
management is held to account for delivering the outcomes intended as part of any transaction and is not
materially advantaged or disadvantaged for pursuing or not pursuing a transaction.
Typically, incorporating an acquisition into the ROC targets will reduce the targets as an asset acquired at market
value is being added to the calculation. Conversely, removing an assumed transaction that didn’t proceed will
typically increase the ROC targets.
Calculation of ROC will be determined by the Board and the Board retains discretion to adjust underlying EBITDA and
FE (including the methodology for applying the ROC performance condition over the Performance Period) to
account for extraordinary items and to otherwise ensure that inappropriate outcomes are avoided.
The ROC component vests in accordance with the following scale:
Hurdle
Vesting outcome
Less than 11.8%
0%
Equal to 11.8%
33%
Greater than 11.8% up to 12.1%
Straight line pro-rata vesting between 33% and 100%
At or above 12.1%
100%
Retesting
Re-testing of LTI awards is not permitted.
Feature
Description
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
126 APA GROUP FY25 ANNUAL REPORT
4.4. Additional provisions
The table below summarises additional provisions as they relate to the remuneration of Executive KMP for FY25.
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), including 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 an 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.
4.5. 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.
Included in the minimum security holding requirement calculation are any performance rights which have been
performance tested as at 30 June 2025, but which may be yet to vest.
All Executive KMP have met the minimum security holding requirement.
Details of Executive KMP security holdings may be found in Section 8.
FY25 ANNUAL REPORT APA GROUP 127
5. 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 2025)
Notice period
A Watson
$1,662,000
•
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
$920,000
•
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
$960,000
G Rollason
$920,000
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
128 APA GROUP FY25 ANNUAL REPORT
6. Non-executive Director remuneration
6.1. Determination of NED fees
The Board seeks to attract and retain high calibre NEDs who are equipped with the diverse skills needed to govern 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 FY25.
6.2. Aggregate NED fee pool
The aggregate NED fee pool as at 30 June 2025 was $2,500,000.
6.3. Director fees
During FY25 the Board did not make any changes to director fees.
The following table sets out the FY25 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
6.4. 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 2025, all NEDs met this requirement. Details of NED security holdings may be found in section 8.
FY25 ANNUAL REPORT APA GROUP 129
7. Remuneration governance
The diagram below outlines the remuneration governance framework in place at APA.
Board
The Board has overarching responsibility for the approval of the Executive KMP and NED remuneration framework,
pay outcomes, policies and procedures, based on the recommendations of the People & Remuneration
Committee.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
130 APA GROUP FY25 ANNUAL REPORT
People & Remuneration Committee
The Committee has been established by the Board to, among
other things, oversee Executive KMP and NED remuneration.
The purpose of the Committee is to assist the Board in fulfilling
its responsibility to oversee the development of APA's people
and remuneration strategies and frameworks to support the
achievement of APA’s business objectives.
Specifically, the Committee will ensure the strategies and
frameworks align employee, investor and customer interests,
promote a positive culture and facilitate effective attraction,
retention and development of a diverse and talented workforce.
The full responsibilities of the Committee can be found in APA's
People & Remuneration Committee Charter available on APA's
website.
The members of the Committee, all of whom are independent
NEDs are:
• David Lamont (Chair)
• Varya Davidson
• Nino Ficca
• Rhoda Phillippo
Audit & Finance, Safety
& Sustainability and Risk
Management Committees
In considering whether a robust
performance assessment process is
in place, the People & Remuneration
Committee consults with the Audit
& Finance, Safety & Sustainability and Risk
Management Committees on whether
proposed remuneration outcomes are
appropriate considering relevant risk
outcomes and corporate culture.
External advisors
The People & Remuneration Committee
seeks external professional advice from
time-to-time on matters within its terms
of reference.
In FY25, external advisors were engaged
to provide market practice information
and benchmarking data.
Where a remuneration recommendation
is provided, as defined by the
Corporations Act 2001 all advice is
provided directly to the People &
Remuneration Committee to ensure it is
free from the influence of management.
No remuneration recommendations
were provided in FY25.
Management
Management is responsible for providing relevant information
and analysis to the Board and the People & Remuneration
Committee. This advice is used as a guide, and does not serve
as a substitute for the thorough consideration of the issues by
each NED.
Management may also be required to communicate
with external advisors as required to ensure the People
& Remuneration Committee receives all the relevant
factual information.
8. Statutory tables
The following tables outline the amounts recognised as an expense in the respective years, determined in accordance
with the relevant accounting standards.
8.1. Executive KMP statutory remuneration
Short-Term
Employment Benefits
Post
Employment
Security-based payments
Salary
1
Awarded
Cash STI
2
STI Deferral
Superannuation
Legacy LTI
Plan
3
Equity settled
Security Based
4
Total
A Watson
FY25
1,611,401
1,312,299
–
29,932
–
1,039,049
3,992,681
FY24
1,572,601
902,400
–
27,399
–
900,215
3,402,615
P Bradford
FY25
890,068
523,940
–
29,932
–
663,071
5
2,107,011
FY24
6
642,497
241,253
120,626
27,399
–
154,142
1,185,917
D Rogers
FY25
926,698
522,720
–
29,932
–
594,026
2,073,376
FY24
892,601
639,400
–
27,399
92,405
578,435
2,230,240
G Rollason
FY25
890,068
500,940
–
29,932
–
469,078
7
1,890,018
FY24
8
635,640
212,672
106,336
20,549
–
169,834
1,145,031
Total Remuneration
FY25
4,318,235 2,859,899
–
119,728
–
2,765,224
10,063,086
FY24
3,743,339
1,995,725
226,962
102,746
92,405
1,802,626
7,963,803
FY25 ANNUAL REPORT APA GROUP 131
1 Salary includes both fixed pay and any salary sacrificed items, such as motor vehicles (including any applicable fringe benefits tax). It is exclusive of any
superannuation contributions.
2 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).
3 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.
4 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.
5 Includes the vesting of sign on rights which were disclosed in the FY24 Remuneration Report. Value based on the security price at close of trade on the day of
vesting, being 28/08/2024.
6 Commenced employment on 28 August 2023.
7 Includes the vesting of sign on rights which were disclosed in the FY24 Remuneration Report. Value based on the security price at close of trade on the day of
vesting, being 19/09/2024.
8 Commenced employment on 16 October 2023.
8.2. NED statutory remuneration disclosure
Short-term
employment
benefits
Post-employment
benefits
Total $
Financial Year
Fees $
Superannuation $
M Fraser
FY25
483,803
29,932
513,735
FY24
486,336
27,399
513,735
V Davidson
1
FY25
66,843
7,687
74,530
J Fazzino
FY25
237,194
27,277
264,471
FY24
238,263
26,209
264,472
N Ficca
2
FY25
214,244
24,638
238,882
FY24
167,859
18,465
186,324
D Lamont
3
FY25
176,697
20,320
197,017
S Lewis
4
FY25
169,098
5,765
174,863
R Phillippo
FY25
237,194
27,277
264,471
FY24
238,263
26,209
264,472
Former NEDs
D Goodin
5
FY25
143,201
16,468
159,669
FY24
222,954
24,525
247,479
S Int 'Veld
6
FY24
150,274
16,530
166,804
P Wasow
7
FY25
74,768
8,598
83,366
FY24
238,263
26,209
264,472
Total
FY25
1,803,043
167,964
1,971,007
FY24
1,742,212
165,545
1,907,757
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
132 APA GROUP FY25 ANNUAL REPORT
1 Commenced in role on 1 March 2025.
2 Commenced in role on 1 September 2023.
3 Commenced in role on 1 October 2024.
4 Commenced in role on 1 October 2024.
5 Ceased in role on 25 February 2025.
6 Ceased in role on 28 March 2024.
7 Ceased in role on 24 October 2024.
8.3. 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 2024
Performance
Rights
granted in
FY25 as
remuneration
Grant date
Vested in
FY25
Forfeited /
lapsed or
other change
in FY25
Closing
balance
on 30 June
2025
Fair value of
Performance
Rights at
grant date $
A Watson
FY21 LTI
35,475
–
2/12/2020
17,738
–
17,737
682,723
FY22 LTI
128,367
–
10/11/2021
21,395
64,184
42,788
683,340
FY23 LTI
162,462
–
16/12/2022
–
–
162,462
1,050,588
FY24 LTI
269,626
–
6/11/2023
–
–
269,626
1,406,100
FY25 LTI
–
287,284
4/11/2024
–
–
287,284
1,029,920
P Bradford
FY24 LTI
117,259
–
6/11/2023
–
–
117,259
611,506
FY25 LTI
–
137,656
4/11/2024
–
–
137,656
493,504
D Rogers
FY20 LTI
12,238
–
20/12/2019
12,238
–
–
342,895
FY21 LTI
23,899
–
12/11/2020
11,950
–
11,949
459,943
FY22 LTI
108,098
–
10/11/2021
18,017
54,049
36,032
575,442
FY23 LTI
100,990
–
16/12/2022
–
–
100,990
653,069
FY24 LTI
129,196
–
6/11/2023
–
–
129,196
673,757
FY25 LTI
–
143,642
4/11/2024
–
–
143,642
514,971
G Rollason
FY24 LTI
129,196
–
6/11/2023
–
–
129,196
673,757
FY25 LTI
–
137,656
4/11/2024
–
–
137,656
493,504
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
FY25
Fair value
$1.80
$1.69
$1.59
$5.83
$5.47
$5.13
Grant date
4/11/2024
4/11/2024
Vesting date
August 2027
August 2028
August 2026
August 2027
August 2028
August 2029
FY25 ANNUAL REPORT APA GROUP 133
8.4. 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 2025
Opening Balance
at 1 July 2024
Securities
Acquired
Securities
Disposed
Closing Balance
at 30 June 2025
Meets minimum
security holding
requirement
as at 30 June 2025
NEDS
M Fraser
106,489
–
–
106,489
Yes
V Davidson
1
25,116
–
–
25,116
Yes
J Fazzino
34,298
13,114
–
47,412
Yes
N Ficca
12,500
21,788
–
34,288
Yes
D Lamont
2
40,407
14,593
–
55,000
Yes
S Lewis
3
7,600
15,000
–
22,600
Yes
R Phillippo
20,325
1,567
–
21,892
Yes
Former NEDs
D Goodin
4
27,726
–
–
27,726
N/A
P Wasow
5
29,547
–
–
29,547
N/A
Executive KMP
A Watson
97,400
56,133
—
153,533
Yes
P Bradford
–
64,429
–
64,429
Yes
D Rogers
77,332
46,505
–
123,837
Yes
G Rollason
–
65,873
–
65,873
Yes
8.5. Loans to KMP and other transaction of KMP and personally related entities
During FY25, 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 (CONTINUED)
REMUNERATION REPORT
134 APA GROUP FY25 ANNUAL REPORT
1 Commenced in role on 1 March 2025 hence opening balance is shown as at this date.
2 Commenced in role on 1 October 2024 hence opening balance is shown as at this date.
3 Commenced in role on 1 October 2024 hence opening balance is shown as at this date.
4 Ceased in role on 25 February 2025 hence closing balance is shown as at this date.
5 Ceased in role on 24 October 2024 hence closing balance is shown as at this date.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
2025
2024
Note
$m
$m
Revenue
3,179
3,039
Share of net profits of associates and joint ventures using the equity method
25
25
4
3,204
3,064
Asset operation and management expenses
(119)
(182)
Depreciation and amortisation expenses
5
(990)
(919)
Other operating costs – pass-through
5
(491)
(473)
Finance costs
5
(705)
(627)
Employee benefit expense
5
(544)
(470)
Other (expenses)/income ¹
(123)
841
Fair value gains/(losses) on contracts for difference and investments
18
15
(17)
Impairment of property, plant and equipment ²
2
–
(144)
Profit before tax
247
1,073
Income tax expense
6
(118)
(75)
Profit for the year
129
998
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit plans
2
7
Income tax impact
(1)
(2)
1
5
Items that may be reclassified subsequently to profit or loss:
Transfer of gain on cash flow hedges to profit or loss
19
339
262
Loss on cash flow hedges taken to equity
19
(531)
(45)
Loss on associate hedges taken to equity
19
(7)
(9)
Income tax impact
59
(62)
(140)
146
Other comprehensive (loss)/income, net of income tax
(139)
151
Total comprehensive (loss)/income for the period
(10)
1,149
Profit attributable to:
Unitholders of the parent
99
978
Non-controlling interest – APA Investment Trust unitholders
21
30
20
APA stapled securityholders
129
998
Total comprehensive (loss)/income attributable to:
Unitholders of the parent
(40)
1,129
Non-controlling interest – APA Investment Trust unitholders
30
20
APA stapled securityholders
(10)
1,149
Earnings per security
2025
2024
Basic and diluted (cents per security)
7
9.9
78.9
1
In the prior year, 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.
2
In the prior 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 for further details.
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
FY25 ANNUAL REPORT APA GROUP 135
Consolidated Statement of Financial Position
2025
2024
Note
$m
$m
Current assets
Cash and cash equivalents
17
800
676
Trade and other receivables
9
371
433
Other financial assets
19
21
176
Inventories
77
83
Other
15
19
Assets classified as held for sale
11
130
–
Current assets
1,414
1,387
Non-current assets
Trade and other receivables
9
21
7
Other financial assets
19
728
220
Investments accounted for using the equity method
22
253
262
Property, plant and equipment
12
12,662
12,477
Goodwill
13
1,860
1,882
Other intangible assets
13
2,968
3,293
Other
31
35
Non-current assets
18,523
18,176
Total assets
19,937
19,563
Current liabilities
Trade and other payables
10
446
555
Lease liabilities
17
13
20
Borrowings
17
4
1,899
Other financial liabilities
19
209
215
Provisions
15
144
160
Unearned revenue
18
15
Liabilities directly associated with assets classified as held for sale
11
70
–
Current liabilities
904
2,864
Non-current liabilities
Trade and other payables
10
16
1
Lease liabilities
17
29
50
Borrowings
17
13,973
11,023
Other financial liabilities
19
390
443
Deferred tax liabilities
6
1,472
1,469
Provisions
15
413
386
Unearned revenue
72
79
Non-current liabilities
16,365
13,451
Total liabilities
17,269
16,315
Net assets
2,668
3,248
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES (CONTINUED)
REMUNERATION REPORT
136 APA GROUP FY25 ANNUAL REPORT
Consolidated Statement of Financial Position (continued)
2025
2024
Note
$m
$m
Equity
APA Infrastructure Trust equity:
Issued capital
20
2,526
2,400
Reserves
(699)
(553)
Retained earnings
93
654
Equity attributable to unitholders of the parent
1,920
2,501
Non-controlling interests:
APA Investment Trust:
Issued capital
734
734
Retained earnings
14
13
Equity attributable to unitholders of APA Investment Trust
21
748
747
Total equity
2,668
3,248
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
FY25 ANNUAL REPORT APA GROUP 137
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 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
475
—
—
—
—
475
200
—
200
675
Securities issued under retail securities purchase
plan
141
—
—
—
—
141
59
—
59
200
Securities issued under distribution reinvestment
plan
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
Balance at 1 July 2024
2,400
9
9
(571)
654
2,501
734
13
747
3,248
Profit for the year
—
—
—
—
99
99
—
30
30
129
Other comprehensive income
—
—
—
(199)
2
(197)
—
—
—
(197)
Income tax relating to components of other
comprehensive income
—
—
—
59
(1)
58
—
—
—
58
Total comprehensive income for the year
—
—
—
(140)
100
(40)
—
30
30
(10)
Payment of distributions (note 8)
(22)
—
—
—
(670)
(692)
(8)
(29)
(37)
(729)
Equity settled long-term incentives (net of tax)
—
—
3
—
—
3
—
—
—
3
Securities issued under distribution reinvestment
plan
148
—
—
—
—
148
8
—
8
156
Transfer to retained earnings ¹
—
(9)
—
—
9
—
—
—
—
—
Balance at 30 June 2025
2,526
—
12
(711)
93
1,920
734
14
748
2,668
1
The asset revaluation reserve arose on the revaluation of the existing interest in a pipeline as a result of a business combination. The amount of $9 million has been transferred from the asset revaluation reserve to retained earnings to
simplify equity presentation. This does not reflect a realisation of the underlying gain and does not impact profit or loss. This $9 million 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.
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 2025
138 APA GROUP FY25 ANNUAL REPORT
Consolidated Statement of Cash Flows
2025
2024
Note
$m
$m
Cash flows from operating activities
Receipts from customers
3,491
3,230
Payments to suppliers and employees
(1,573)
(1,544)
Dividends received from associates and joint ventures
27
14
Proceeds from repayments of finance leases
1
1
Interest received
48
47
Interest and other costs of finance paid
(636)
(540)
Income taxes paid
(74)
(52)
Net cash provided by operating activities
1,284
1,156
Cash flows from investing activities
Payments for property, plant and equipment ¹
(918)
(1,053)
Proceeds from sale of property, plant and equipment
21
41
Payments for intangible assets
(46)
(43)
Payments for controlled entities, net of cash acquired ²
–
(1,615)
Capital return from Joint Venture
–
13
Payment for other investments
(4)
–
Net cash used in investing activities
(947)
(2,657)
Cash flows from financing activities
Proceeds from borrowings
2,165
3,423
Repayments of borrowings
(1,749)
(1,905)
Receipts from debt and hedge settlements
–
4
Proceeds from issue of securities
–
875
Payments for security issue costs
–
(11)
Repayments of lease liabilities
(24)
(18)
Transaction costs related to borrowings
(31)
(25)
Distributions paid to:
Unitholders of APA Infrastructure Trust (net of DRP issuance)
(544)
(582)
Unitholders of non-controlling interests – APA Investment Trust (net of DRP issuance)
(29)
(97)
Net cash (used in)/provided by financing activities
(212)
1,664
Net increase in cash and cash equivalents
125
163
Cash and cash equivalents at beginning of financial year
676
513
Effect of exchange rate changes on cash and cash equivalents
(1)
–
Cash and cash equivalents at end of financial year
17
800
676
1
Included in the current year payments for property, plant and equipment is the consideration paid of $110 million to acquire Atlas to Reedy Creek Pipeline.
Refer to note 24 for further details.
2
Included in the prior year payments for the 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.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
FY25 ANNUAL REPORT APA GROUP 139
Consolidated Statement of Cash Flows (continued)
Reconciliation of profit for the year to the net cash provided by operating activities
2025
2024
Note
$m
$m
Profit for the year
129
998
Impairment of property, plant and equipment ¹
2
–
144
Impairment of goodwill ²
11
15
–
Loss/(profit) on disposal of property, plant and equipment
5
(1)
Share of net profits of joint ventures and associates using the equity method
(25)
(25)
Dividends received from equity accounted investments
27
14
Remeasurement of APA's previous 88.2% interest in GGT joint operations ³
2
–
(1,051)
Depreciation and amortisation expenses
990
919
Fair value (gains)/losses on contracts for difference and investments
(15)
17
Non-cash finance costs
50
43
Effect of exchange rate changes
1
1
Wallumbilla Gladstone Pipeline hedge accounting discontinuation ⁴
51
38
Equity settled long-term incentives
4
1
Changes in assets and liabilities:
Trade and other receivables
2
(39)
Inventories
(12)
(19)
Other assets
8
16
Trade and other payables
(7)
73
Provisions
10
(11)
Other liabilities
7
15
Income tax balances
44
23
Net cash provided by operating activities
1,284
1,156
1
Included in the prior 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.
2
A $15 million impairment loss has been recognised on goodwill associated with APA's gas distribution operations and maintenance business and its Tamworth gas
distribution network classified as held for sale at 30 June 2025. Refer to note 11 for further details.
3
Included in the prior year is 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.
4 In February 2022, February 2024 and December 2024, following entry into a series of forward exchange contracts, hedge accounting was discontinued for WGP
revenues to be generated from FY22 to FY35. The revenues were previously hedged by USD denominated 144A notes and EUR/USD cross currency swaps. WGP
hedge accounting discontinuation reflects the 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 2025
140 APA GROUP FY25 ANNUAL REPORT
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.
Certain comparative amounts in this financial report have been reclassified to conform to the current year’s
presentation.
Basis of Preparation
141
1.
About this report
141
2.
General information
142
Financial Performance
144
3.
Segment information
144
4.
Revenue
148
5.
Expenses
150
6.
Income tax
151
7.
Earnings per security
153
8.
Distributions and free cash flow
154
Operating Assets and Liabilities
156
9.
Receivables
156
10.
Payables
156
11
Assets and Liabilities classified as held for sale
157
12.
Property, plant and equipment
158
13.
Goodwill and intangibles
160
14.
Impairment of non-financial assets
162
15.
Provisions
165
16.
Employee superannuation plans
167
Capital Management
168
17.
Net debt
169
18.
Financial risk management
172
19.
Other financial instruments
185
20.
Issued capital
187
Group Structure
188
21.
Non-controlling interests
188
22.
Joint arrangements and associates
189
23.
Subsidiaries
190
Other items
194
24
Acquisition of Atlas to Reedy Creek Pipeline
Asset
194
25.
Commitments and contingencies
194
26.
Director and Executive Key Management
Personnel remuneration
195
27.
Remuneration of external auditor
196
28.
Related party transactions
197
29.
Parent entity information
198
30.
Adoption of new and revised Accounting
Standards
199
31.
Events occurring after reporting date
199
FY25 ANNUAL REPORT APA GROUP 141
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 2025 was authorised for issue in
accordance with a resolution of the directors on 20 August 2025.
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
Functional and presentation currency of APA Group is Australian dollars (A$).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
142 APA GROUP FY25 ANNUAL REPORT
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 12)
•
Impairment of non-financial assets (note 14)
•
Restoration provision (note 15)
•
Fair value of financial instruments (note 18(c))
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; regulatory outcomes; asset useful
lives; environmental regulations; climate-related risks and the resolution of certain contractual matters with customers.
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.
Significant items
Individually significant items included in profit after income tax expense are as follows:
2025
2024
$m
$m
Significant items impacting profit before tax
Impairment of property, plant and equipment ¹
–
(144)
Remeasurement of APA's previous 88.2% interest in GGT joint operations ²
–
1,051
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
In the prior 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.
2
In the prior year, 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.
3
In the prior year, 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 were incurred to 30 June 2024.
FY25 ANNUAL REPORT APA GROUP 143
Notes to the consolidated financial statements (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, and electricity generation and transmission (gas and renewables), and battery
energy storage systems;
•
Asset Management: The provision of asset management and operating services for third parties and the majority of
APA’s investments; and
•
Energy Investments: APA’s interests in energy infrastructure investments.
Reportable segments
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2025
$m
$m
$m
$m
$m
Segment revenue ¹
Revenue from contracts with customers
2,542
111
—
—
2,653
Pass-through revenue
51
440
—
—
491
Total revenue from contracts with customers
2,593
551
—
—
3,144
Equity accounted share of profit
—
—
25
—
25
Other non-contract revenue
37
—
1
—
38
Total segment revenue
2,630
551
26
—
3,207
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation ²
(51)
—
—
—
(51)
Other interest income
—
—
—
48
48
Total revenue
2,579
551
26
48
3,204
1
The segment revenue reported represents revenue generated from external customers. Any inter-segment sales were immaterial.
2
In February 2022, February 2024 and December 2024, following entry into a series of forward exchange contracts, hedge accounting was discontinued for
WGP revenues to be generated from FY22 to FY35. The revenues were previously hedged by USD denominated 144A notes and EUR/USD cross currency swaps.
WGP hedge accounting discontinuation reflects the 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 2025
144 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
2025
Energy
Infrastructure
$m
Asset
Management
$m
Energy
Investments
$m
Other
$m
Consolidated
$m
Segment result
Segment underlying EBITDA
1
2,093
60
—
—
2,153
Share of net profits of joint ventures and associates
using the equity method
—
—
25
—
25
Finance lease and investment interest income
1
—
1
—
2
Corporate costs
—
—
—
(165)
(165)
Total underlying EBITDA
1
2,094
60
26
(165)
2,015
Fair value gain on contracts for difference and
investments
2
15
—
—
—
15
Technology transformation projects
3
—
—
—
(37)
(37)
Wallumbilla Gladstone Pipeline hedge accounting
discontinuation
4
(51)
—
—
—
(51)
Pilbara Energy System integration costs
5
—
—
—
(9)
(9)
Impairment relating to assets classified as held for
sale (including transaction costs) ⁶
—
(21)
—
—
(21)
Restructuring costs ⁷
—
—
—
(15)
(15)
Other
—
—
—
(3)
(3)
Total reported EBITDA ⁸
2,058
39
26
(229)
1,894
Depreciation and amortisation
(972)
(18)
—
—
(990)
Total reported EBIT ⁹
1,086
21
26
(229)
904
Net interest cost ¹⁰
(657)
Reported profit before tax
247
Income tax expense
(118)
Reported profit after tax
129
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 gain/(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 and a net gain/(loss) recognised on an investment fund held at fair value.
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, February 2024 and December 2024, following entry into a series of forward exchange contracts, hedge accounting was discontinued for
WGP revenues to be generated from FY22 to FY35. The revenues were previously hedged by USD denominated 144A notes and EUR/USD cross currency swaps.
WGP hedge accounting discontinuation reflects the 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).
6 The amount represents the non-cash impairment loss of $15 million and transaction costs incurred during the year of $6 million in connection with APA's gas
distribution operations and maintenance business and its Tamworth gas distribution network classified as held for sale at 30 June 2025. Refer to Note 11 for
further details.
7
The amount represents costs incurred as part of enterprise-wide cost reduction initiatives.
8 Earnings before interest, tax, depreciation, and amortisation ("EBITDA"), including non-operating items and excluding significant items.
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.
FY25 ANNUAL REPORT APA GROUP 145
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Infrastructure
Management
Investments
Other
Consolidated
2025
$m
$m
$m
$m
$m
Segment assets and liabilities
Segment assets
17,952
160
11
—
18,123
Carrying value of investments using the equity
method
—
—
253
—
253
Unallocated assets ¹
—
—
—
1,561
1,561
Total assets
17,952
160
264
1,561
19,937
Segment liabilities
1,034
88
—
—
1,122
Unallocated liabilities ²
—
—
—
16,147
16,147
Total liabilities
1,034
88
—
16,147
17,269
Energy
Asset
Energy
1
Unallocated assets includes cash and cash equivalents, fair value of cross currency swaps, derivatives at fair value, income tax receivable and investment in
unlisted funds.
2
Unallocated liabilities includes current and non-current borrowings, deferred tax liabilities provision for income tax, fair value of cross currency swaps,
foreign currency forward exchange contracts and equity forwards.
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 share of profit
—
—
25
—
25
Other non-contract revenue
14
—
1
—
15
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 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 and EUR/USD cross currency
swaps. WGP hedge accounting discontinuation reflects the 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 2025
146 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Energy
Asset
Energy
Infrastructure
Management
Investments
Other
Consolidated
2024
$m
$m
$m
$m
$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)
Other
—
—
—
(4)
(4)
Total reported EBITDA
6
1,904
69
26
(263)
1,736
Depreciation and amortisation
(901)
(18)
—
—
(919)
Total reported EBIT
7
1,003
51
26
(263)
817
Net interest cost
8
(579)
Profit before tax excluding significant items
238
Income tax expense
(119)
Profit after tax excluding significant items
119
Significant items before tax ⁹
835
Reported profit before tax
1,073
Significant items after tax ⁹
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 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 and EUR/USD cross currency
swaps. WGP hedge accounting discontinuation reflects the 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).
6 Earnings before interest, tax, depreciation, and amortisation ("EBITDA"), including non-operating items and excluding significant items
7
Earnings before interest and tax ("EBIT").
8 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.
9
Refer to note 2 significant items section for further details.
FY25 ANNUAL REPORT APA GROUP 147
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
3. Segment information (continued)
Energy
Asset
Energy
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
1
Unallocated assets includes cash and cash equivalents, fair value of cross currency swaps, derivatives at fair value, income tax receivable and investment in
unlisted funds.
2
Unallocated liabilities includes current and non-current borrowings, deferred tax liabilities provision for income tax, fair value of cross currency swaps,
foreign currency forward exchange contracts and equity forwards
4. Revenue
Disaggregation of revenue
Revenue is disaggregated below by business unit and region.
2025
2024
$m
$m
Energy Infrastructure
Wallumbilla Gladstone Pipeline ¹
687
659
East Coast gas transmission and storage
869
833
West Coast gas transmission and storage
430
410
Contracted Power Generation
480
453
Electricity Transmission
76
69
Energy Infrastructure revenue
2,542
2,424
Asset Management revenue
111
118
Pass-through revenue
491
473
Total revenue from contracts with customers
3,144
3,015
Energy Investments – equity accounted share of profit (note 22)
25
25
Non-contract revenue
38
15
Total segment revenue
3,207
3,055
Wallumbilla Gladstone Pipeline hedge accounting discontinuation ²
(51)
(38)
Other interest income
48
47
Total revenue
3,204
3,064
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 group of cash-generating units for goodwill impairment assessment purposes. Refer to note 13 and note 14 for
further details.
2
In February 2022, February 2024 and December 2024, following entry into a series of forward exchange contracts, hedge accounting was discontinued for
WGP revenues to be generated from FY22 to FY35. The revenues were previously hedged by USD denominated 144A notes and EUR/USD cross currency swaps.
WGP hedge accounting discontinuation reflects the 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 2025
148 APA GROUP FY25 ANNUAL REPORT
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:
•
Non-contract revenue: includes dividend income, which is recognised when the right to receive the payment has
been established; and
•
Other interest income: 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
Unearned revenue includes upfront contributions received on contracts with customers and government grants
received in advance. During the year, APA Group recognised $6 million (2024: $7 million) in revenue from contracts with
customers from the unearned revenue balance at 30 June 2024.
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 are incurred whether the contract is
obtained or not (e.g. staff salaries, professional fees, etc.).
FY25 ANNUAL REPORT APA GROUP 149
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
4. Revenue (continued)
Future revenues from remaining performance obligations
As at 30 June 2025, future contracted Energy Infrastructure revenues extending through to 2051 are approximately
$14.3 billion (2024: $15.9 billion extending through to 2051), of which $2.0 billion is expected to be recognised in the year
ending 30 June 2026. 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 2025 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
2026 and beyond.
Information about major customers
Included in revenues from contracts with customers arising from Energy Infrastructure of $2,542 million (2024: $2,424
million) are revenues of approximately $784 million (2024: $778 million) which arose from sales to APA Group's top three
customers, of which $360 million (2024: $355 million) is derived from a single customer.
5. Expenses
2025
2024
$m
$m
Depreciation of non-current assets
732
687
Amortisation of non-current assets
258
232
Depreciation and amortisation expense
990
919
Energy infrastructure costs – pass-through
51
55
Asset management costs – pass-through
440
418
Other operating costs – pass-through
491
473
Interest on bank overdrafts and borrowings ¹
684
597
Amortisation of deferred borrowing costs
16
18
Other finance costs
13
9
713
624
Less: amounts included in the cost of qualifying assets
(42)
(30)
671
594
(Gain)/loss on derivatives ²
(88)
8
Loss on debt FX translation ³
68
—
Hedge reserve amortisation on hedge discontinuation ⁴
37
9
Unwinding of discount on non-current liabilities
17
8
Unwinding of discount on deferred revenue
1
2
Unwinding of discounts on bonds
4
3
Gain on loan modification
(8)
—
Interest incurred on lease liabilities
3
3
Finance costs
705
627
Defined contribution plans
41
34
Defined benefit plans (note 16)
1
2
Post-employment benefits
42
36
Termination benefits
12
1
Cash settled long-term incentive payments ⁵
54
44
Equity settled long-term incentive payments ⁵
6
10
Other employee benefits
430
379
Employee benefit expense ⁶
544
470
1
The average interest rate applicable to drawn debt is 5.12% p.a. (2024: 4.77% p.a.) excluding finance costs associated with amortisation of borrowing costs.
2
Represents (gain)/ loss on derivatives, predominantly $83 million gain on cross currency swaps designated at fair value through profit or loss. Following the
change of risk management approach in relation to the WGP USD revenue in December 2024, APA discontinued the hedge relationships for the GBP/USD
cross currency swaps hedging the WGP USD revenue and GBP debt. The GBP/USD cross currency swaps have been fair valued through profit and loss since
hedge discontinuation.
3
Represents $55 million foreign currency translation loss on borrowings where hedge accounting is no longer applied and $13 million as a result of the 2015
USD 1.1bn 144A termination.
4 Represents the hedge reserve amortisation from the date of WGP debt related hedge discontinuation in February 2024 and December 2024.
5
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.
6 An additional employee benefit expense of $103 million (2024: $95 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 2025
150 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Income tax
The major components of tax expense are:
2025
2024
$m
$m
Income statement
Current tax expense in respect of the current year
(75)
(38)
Adjustments recognised in the current year in relation to current tax of prior years
8
1
Deferred tax expense relating to the origination and reversal of temporary differences
(51)
(38)
Total tax expense
(118)
(75)
Tax reconciliation
Profit before tax
247
1,073
Income tax expense calculated at 30%
(74)
(322)
Non-assessable trust distribution
9
6
Non-deductible expenses
(62)
(76)
Non-assessable income
—
316
(127)
(76)
Franking credits received
1
1
Adjustments recognised in the current year in relation to current tax of prior years
8
1
Other
—
(1)
(118)
(75)
$23 million of income tax receivable has been recognised (2024: $15 million income tax receivable). Refer to note 9 for
further details.
Deferred tax balances
Deferred tax (liabilities)/assets arise from the following:
Opening
balance
Charged to
income
Charged to
equity
Classified as
held for sale ¹
Closing
balance
2025
$m
$m
$m
$m
$m
Gross deferred tax liabilities
Property, plant and equipment and
intangible assets
(1,996)
(11)
—
—
(2,007)
Investments equity accounted
(1)
—
2
—
1
Deferred expenses
(42)
1
—
—
(41)
Other
2
(3)
(1)
—
(2)
(2,037)
(13)
1
—
(2,049)
Gross deferred tax assets
—
Provisions
180
(18)
—
(10)
152
Cash flow hedges
250
14
57
—
321
Borrowings
(11)
(7)
—
—
(18)
Deferred revenue
32
3
—
—
35
Defined benefit obligation
(2)
(1)
(1)
1
(3)
Tax losses
119
(29)
—
—
90
568
(38)
56
(9)
577
Net deferred tax liability
(1,469)
(51)
57
(9)
(1,472)
1
Amounts relate to APA's gas distribution operations and maintenance business and its Tamworth gas distribution network that are classified as held for sale
as at 30 June 2025, refer to Note 11 for further details.
FY25 ANNUAL REPORT APA GROUP 151
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Income tax (continued)
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
intangible assets
(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)
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). Deferred tax liability 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.
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 23.
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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
152 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
7. Earnings per security
2025
2024
cents
cents
Earnings per security
Basic and diluted earnings per unit attributable to the parent
7.6
77.3
Basic and diluted earnings per unit attributable to the non-controlling interest
2.3
1.6
Basic and diluted earnings per security
9.9
78.9
Earnings per security excluding significant items
Basic and diluted earnings excluding significant items per unit attributable to the parent
7.6
7.8
Basic and diluted earnings excluding significant items per unit attributable to
the non-controlling interest
2.3
1.6
Basic and diluted earnings per security excluding significant items
9.9
9.4
Underlying earnings per security ¹
Underlying basic and diluted earnings per unit attributable to the parent
15.0
17.3
Underlying basic and diluted earnings per unit attributable to the non-controlling interest
2.3
1.6
Underlying basic and diluted earnings per security
17.3
18.9
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:
2025
2024
$m
$m
Net profit
Net profit attributable to unitholders of the parent
99
978
Net profit attributable to unitholders of the non-controlling interest
30
20
Net profit attributable to stapled securityholders for calculating basic and diluted earnings per
security (note 3)
129
998
Underlying net profit
Net profit attributable to unitholders of the parent
99
978
Significant items, net of tax (note 2)
—
(879)
Net profit excluding significant items attributable to unitholders of the parent
99
99
Fair value (gains)/losses on contracts for difference and investments, net of tax ¹
(11)
12
Technology transformation projects, net of tax ¹
26
59
Revenue impact of Wallumbilla Gladstone Pipeline hedge accounting discontinuation, net of tax ¹
36
27
Pilbara Energy System integration costs, net of tax ¹
6
10
Impairment relating to assets classified as held for sale (including transaction costs, net of tax) ¹
19
—
Restructuring costs, net of tax ¹
11
3
Finance cost impact of Wallumbilla Gladstone Pipeline hedge accounting discontinuation, net of tax ¹
6
6
Other, net of tax
2
3
Underlying net profit attributable to unitholders of the parent
194
219
Underlying net profit attributable to unitholders of the non-controlling interest
30
20
Underlying net profit attributable to stapled securityholders for calculating basic and diluted earnings
per security
224
239
1
Refer to Note 3 for further details.
FY25 ANNUAL REPORT APA GROUP 153
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
7. Earnings per security (continued)
2025
2024
No. of
securities
No. of
securities
millions
millions
Weighted average number of ordinary securities used in the calculation of:
Basic earnings per security
1,295
1,265
Diluted earnings per security ¹
1,299
1,268
1
Includes 5 million (2024: 4 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
8. Distributions and free cash flow
2025
2025
2024
2024
cents per
Total
cents per
Total
security
$m
security
$m
Recognised amounts
Final FY24 distribution paid on 18 September 2024
( 30 June 2023: Final FY23 distribution paid on 13 September 2023)
Profit distribution – APA Infrastructure Trust ¹
28.48
366
6.64
79
Capital distribution – APA Infrastructure Trust
—
—
15.02
177
Profit distribution – APA Investment Trust ²
1.02
13
1.00
12
Capital distribution – APA Investment Trust
—
—
6.34
74
29.50
379
29.00
342
1
Final FY24: APA Infrastructure Trust profit distributions were partially franked resulting in franking credits of 3.02 per security (Final FY23: unfranked).
2
APA Investment Trust profit distributions were unfranked.
2025
2025
2024
2024
cents per
Total
cents per
Total
security
$m
security
$m
Interim FY25 distribution paid on 17 March 2025
(31 December 2023: Interim FY24 distribution paid on 14 March 2024)
Profit distribution – APA Infrastructure Trust ¹
23.48
304
25.63
329
Capital distribution – APA Infrastructure Trust
1.68
22
—
—
Profit distribution – APA Investment Trust ²
1.22
16
0.57
7
Capital distribution – APA Investment Trust
0.62
8
0.30
4
27.00
350
26.50
340
Total distributions recognised
Profit distributions
54.20
699
33.84
427
Capital distributions
2.30
30
21.66
256
56.50
729
55.50
683
1
Interim FY25: APA Infrastructure Trust profit distributions were partially franked (Interim FY24: unfranked).
2
APA Investment Trust profit distributions were unfranked.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
154 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
8. Distributions and free cash flow (continued)
2025
2025
2024
2024
cents per
Total
cents per
Total
security
$m
security
$m
Unrecognised amounts
Final FY25 distribution payable on 10 September 2025 ¹
( 30 June 2024: Final FY24 distribution paid on 18 September 2024)
Profit distribution – APA Infrastructure Trust ²
6.47
84
28.48
366
Capital distribution – APA Infrastructure Trust
16.14
211
—
—
Profit distribution – APA Investment Trust ³
1.10
14
1.02
13
Capital distribution – APA Investment Trust
6.29
82
—
—
30.00
391
29.50
379
1
Record date 30 June 2025.
2
Final FY25: APA Infrastructure Trust profit distributions are fully franked resulting in franking credits of 2.84 cents per security (Final FY24: partially franked).
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.
2025
2024
$m
$m
Franking account balance
76
54
Income tax (receivable)/payable
(23)
(15)
Adjusted franking account balance
53
39
Free cash flow
2025
2024
$m
$m
Net cash provided by operating activities
1,284
1,156
Stay-in-Business (SIB) capex ¹
(218)
(195)
Free cash flow from operations
1,066
961
Add back material technology transformation projects ²
7
61
Add back acquisition, integration and disposal-related transaction costs ²
10
38
Add back capital return
—
13
Free cash flow ³
1,083
1,073
Securities on issue (million) ⁴
1,304
1,283
Free cash flow per security (cents)
83.1
83.6
1
SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.
2
Adjustments for FY25 have been tax-effected in line with the effective cash tax rate of 29.6%.
3
Free cash flow is defined as Operating Cash Flow adjusted for strategically significant transformation projects, acquisition, integration and disposal-related
costs, and capital returns from Joint Ventures, less stay-in-business capital expenditure. Stay-in-business capital expenditure comprises operational asset
lifecycle replacement costs and technology lifecycle costs.
4 Free cash flow per security has been determined using the number of securities entitled to distribution as at 30 June.
FY25 ANNUAL REPORT APA GROUP 155
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities
9. Receivables
2025
2024
$m
$m
Trade receivables
79
105
Accrued revenue
252
278
Loss allowance (note 18)
(4)
(4)
Trade receivables
327
379
Income tax receivable
23
15
Receivables from associates and related parties
16
16
Finance lease receivables
2
1
Interest receivable
3
2
Other receivables
—
20
Current
371
433
Finance lease receivables
11
7
Other receivables
10
—
Non-current
21
7
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 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.
Finance lease receivables relate to the lease of one pipeline lateral, being the Burrup Extension Pipeline which connects
to the Dampier to Bunbury Natural Gas Pipeline.
10. Payables
2025
2024
$m
$m
Trade payables and accruals
250
389
Other payables
196
166
Current
446
555
Other payables
16
1
Non-current
16
1
Trade payables are non-interest bearing and are normally settled on 15 to 30 day terms.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
156 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
11. Assets and Liabilities classified as held for sale
On 19 August 2025, the Group executed an agreement to divest its gas distribution operations and maintenance
business and its Tamworth gas distribution network to Australian Gas Infrastructure Group (AGIG). The divestment aligns
with the Group’s strategic focus to grow as an owner-operator of energy infrastructure.
The divestment involves a sale of 100% of the issued share capital in the entities that currently conduct the Group's gas
distribution operations and maintenance business (referred to as the "Networks entities").
Through these Networks entities, APA currently provides asset management and operating services to AGIG-owned gas
distribution assets, the Allgas Gas Distribution Network owned by GDI (EII) Pty Ltd (GDI), of which APA Group holds a 20%
ownership interest, and certain gas distribution assets owned by other third parties.
The divestment will result in asset management and operating services for Australian Gas Networks Limited (AGN) and
other third parties' gas distribution assets as well as APA's Tamworth gas distribution network assets, transitioning from
APA to AGIG, subject to satisfaction of conditions precedent.
At 30 June 2025, the Group determined that the Network entities and the Tamworth gas distribution network assets met
the criteria under AASB 5 "Non-current assets held for sale and discontinued operations" to be classified as a disposal
group held for sale. The sale was assessed as highly probable at the reporting date, with completion expected around
second quarter of FY26 i.e. within 12 months.
The transaction does not meet the requirements for presentation as a discontinued operation. Accordingly, the results
of the Network entities and Tamworth gas distribution network assets will continue to be presented within continuing
operations.
The gas distribution operations and maintenance business is reported under the Asset Management reportable
segment, with Tamworth gas distribution network assets forming part of the Energy Infrastructure reportable segment.
The existing goodwill allocated to the Asset Management cash-generating unit of $22 million is associated with the
Networks entities and as such has been included in the carrying amount of the disposal group.
Assets and liabilities of Networks disposal group held for sale
Immediately prior to the classification as held for sale, the recoverable amount of the disposal group was determined
using fair value less costs to sell. This resulted in the recognition of a pre-tax impairment of $15 million. The impairment
loss has been allocated to the goodwill in accordance with AASB 136 Impairment of Assets. This impairment loss has
been recognised in the profit or loss under Other (expenses)/income.
The fair value represents the sale consideration determined based on a 30 June 2025 valuation date, being the date of
classification as held for sale, and includes working capital. The sale consideration excluding working capital and
estimated costs to sell is $47 million. The final sale consideration is subject to completion adjustments including
movements in working capital and management fees received from the existing asset management contracts
between 1 July 2025 and the completion date.
The major classes of assets and liabilities of the disposal group classified as held for sale as at 30 June 2025 are as
follows:
2025
$m
Trade and other receivables
47
Inventories
18
Defined benefit asset
4
Property, Plant and Equipment
24
Goodwill
7
Intangible assets
21
Deferred tax asset
9
Total assets classified as held for sale
130
Lease liabilities
22
Provisions
27
Other liabilities
21
Total liabilities associated with assets classified as held for sale
70
Net assets of disposal group
60
FY25 ANNUAL REPORT APA GROUP 157
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. 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 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
Balance at 1 July 2024
344
17
15,905
1,149
76
30
17,521
Additions ¹˒⁴
—
—
123
713
2
15
853
Reclassified from Other Intangible
Assets
5
—
—
10
92
—
—
102
Disposals
—
—
(4)
—
—
(6)
(10)
Transfers
20
1
948
(969)
—
—
—
Classified as held for sale
6
—
—
(29)
—
(31)
(12)
(72)
Balance at 30 June 2025
364
18
16,953
985
47
27
18,394
Accumulated depreciation and
impairment
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)
Balance at 1 July 2024
(91)
(11)
(4,901)
—
(31)
(10)
(5,044)
Disposals
—
—
3
—
—
3
6
Depreciation expense (note 5)
(15)
(2)
(692)
—
(15)
(8)
(732)
Classified as held for sale
6
—
—
19
—
22
7
48
Reclassified from Other Intangible
Assets
–
–
(10)
–
–
–
(10)
Balance at 30 June 2025
(106)
(13)
(5,581)
—
(24)
(8)
(5,732)
Net book value
As at 30 June 2024
253
6
11,004
1,149
45
20
12,477
As at 30 June 2025
258
5
11,372
985
23
19
12,662
1
Includes non-cash capitalised restoration costs following remeasurement of the restoration provision. Refer to note 15 for further details.
2
Included in prior year, APA acquired the Pilbara Energy System business, including the remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint
operations. Property, plant and equipment comprised of $1,241 million recognised on acquisition and $452 million relating to the Group's pre-existing interest
in GGT joint operations.
3
Included in prior 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 14 for further details.
4 On 24 June 2025 APA Group acquired Atlas to Reedy Creek Pipeline for net $110 million consideration. Transaction costs of $7 million including stamp duty and
acquisition costs have been capitalised into the cost of the pipeline. Refer to note 24 for further details.
5
During the year, certain development assets that were acquired through the PES business acquisition and initially recognised as intangible development
assets, have been reclassified to 'capital works in progress' upon commencement of development activities.
6 Relates to APA's gas distribution operations and maintenance business and its Tamworth gas distribution network that are classified as held for sale as at
30 June 2025, refer to Note 11 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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
158 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. Property, plant and equipment (continued)
The right-of-use (ROU) asset is initially measured at cost comprising the initial measurement of the lease liability
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.
Please refer to note 14 for details of APA's impairment accounting policies.
Depreciation is provided on property, plant and equipment excluding land. Depreciation is calculated on a straight-line
basis 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.
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.
Development assets - property, plant and equipment
Expenditure on development activities is capitalised as "work in progress'' within Property, Plant and Equipment when 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 are 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 of development assets transferred from intangible assets on
commencement of development activities.
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 depreciation is charged during the development phase. Once the asset is in operation, depreciation will be
recognised over the expected useful life of the asset.
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 14 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 the goals and targets that underpinned APA's 2022 Climate Transition Plan, together with APA’s most
recent commercial, operational, and technical outlooks. The assessment also considered the external environment and
the risk of asset stranding. Effective from FY24 all gas infrastructure and electricity generation and transmission assets
have a maximum useful life end date of FY60 and FY57 respectively.
In FY25, the Group considered the findings of its 2025 Climate Transition Plan, including developments in the external
environment and risk of asset stranding. In evaluating the estimated useful lives of its Energy Infrastructure assets, the
Group determined that there are no changes to useful lives required.
FY25 ANNUAL REPORT APA GROUP 159
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
12. Property, plant and equipment (continued)
As at 30 June 2025, 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.
13. Goodwill and intangibles
2025
2024
$m
$m
Goodwill
Balance at beginning of financial year
1,882
1,184
Acquired through business combinations
—
698
Impairment loss relating to assets classified as held for sale ¹
(15)
—
Classified as held for sale ¹
(7)
—
Balance at end of financial year
1,860
1,882
1
Relates to the goodwill associated with APA's gas distribution operations and maintenance business that are classified as held for sale as at 30 June 2025. A
$15 million impairment loss has been recognised for the amount by which the disposal group carrying amount exceeds its recoverable amount, being the
fair value less costs of disposal. Refer to Note 11 for further details.
Allocation of goodwill to cash-generating units
Goodwill has been allocated to individual and groups of 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 a 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 Atlas to Reedy Creek Pipeline, which was acquired during the year, form part of the East
Coast Grid. The East Coast Grid is categorised as a group of cash-generating units.
The Pilbara Energy System business is underpinned by contracted operational assets along the Goldfields Gas Pipeline
and a significant development pipeline of projects in 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 in the prior year 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 System group of cash-generating units. The
Goldfields Gas Pipeline System is comprised of the Goldfields Gas Pipeline, Eastern Goldfields Pipeline, Northern Goldfields
Interconnect Pipeline and laterals.
Refer to note 14 for critical accounting judgements and key sources of estimation uncertainty relating to impairment of
assets.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
160 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
13. Goodwill and intangibles (continued)
The carrying amount of goodwill allocated to individual and groups of cash-generating units that are significant
individually or in aggregate are as follows:
2025
2024
$m
$m
Asset Management business ¹
—
22
Energy Infrastructure
East Coast Grid
1,061
1,061
North-West Power System
43
43
Pilbara Energy System
717
717
Other energy infrastructure ²
39
39
1,860
1,882
1
The Asset Management business goodwill relates to APA's gas distribution operations and maintenance business that are classified as held for sale as at
30 June 2025, of which $15 million has been impaired and $7 million is classified as held for sale. Refer to Note 11 for further details.
2
Primarily represents goodwill relating to the Pilbara Pipeline System ($33 million).
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 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
Balance at 1 July 2024
134
129
47
4,820
5,130
Additions
5
—
39
2
46
Reclassified to Property, Plant and Equipment ³
(10)
(92)
—
—
(102)
Classified as held for sale ⁴
—
—
—
(152)
(152)
Transfer
53
—
(53)
—
—
Balance at 30 June 2025
182
37
33
4,670
4,922
Accumulated amortisation
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)
Balance at 1 July 2024
(108)
—
—
(1,729)
(1,837)
Amortisation expense (note 5)
(23)
—
—
(235)
(258)
Classified as held for sale ⁴
—
—
—
131
131
Reclassified to Property, Plant and Equipment
10
—
—
—
10
Balance at 30 June 2025
(121)
—
—
(1,833)
(1,954)
Net book value
As at 30 June 2024
26
129
47
3,091
3,293
As at 30 June 2025
61
37
33
2,837
2,968
1
Includes $1,691 million (30 June 2024: $1,862 million) of contract intangibles associated with the acquisition of Wallumbilla Gladstone Pipeline in FY15 (Useful life:
20 years) and $1,170 million (30 June 2024: $1,189 million) of contract intangibles associated with the acquisition of Pilbara Energy System business in FY24
(Useful life: 23 to 24 years).
2
In the prior year, APA acquired the Pilbara Energy System business, including the remaining 11.8% interest in Goldfields Gas Transmission (GGT) joint operations.
3
During the year, certain development assets that were acquired through the PES business acquisition and initially recognised as intangible development
assets, have been reclassified to 'capital works in progress' upon commencement of development activities.
4 Relates to the contract intangibles associated with APA's gas distribution operations and maintenance business and its Tamworth gas distribution network
that are classified as held for sale as at 30 June 2025, refer to Note 11 for further details.
FY25 ANNUAL REPORT APA GROUP 161
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
13. Goodwill and intangibles (continued)
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 estimated useful lives on a straight line basis. 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.
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.
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 $4,670 million amortises over terms ranging from 1
to 24 years. Useful life is determined based on the underlying contractual terms.
Development assets - intangibles
Development projects acquired as part of business combination are recognised as intangible assets when they are
separately identifiable.
The Group's development assets comprise a portfolio of projects under development, including solar farm, wind farm,
battery storage and transmission line developments. The development costs recognised as intangible assets represent
the fair value attributed to these projects on acquisition of Pilbara Energy System business in the prior year.
Upon commencement of development activities, the related intangible development asset is transferred to work in
progress within Property, Plant and Equipment. Subsequent development costs incurred from that point are capitalised
directly to work in progress in accordance with AASB 116 Property, Plant and Equipment.
No amortisation is charged during the development phase. Where a project is no longer expected to proceed, the
carrying amount of the development asset is impaired.
14. 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.
Judgement is involved in identifying the Group's cash-generating units, particularly when assets are part of integrated
operations and generate cash inflows that are interdependent with the cash inflows of the other assets of the Group.
The Group's main cash-generating units, being the cash-generating units or groups of cash-generating units containing
goodwill and intangible assets in development, are disclosed in note 13. Certain non-financial assets (excluding goodwill)
are assessed for impairment at a cash-generating unit level.
In accordance with the requirements of AASB 136 Impairment of Assets, APA Group performed an annual impairment
test for all cash-generating units and groups of 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 goodwill associated with the Group's gas distribution operations and maintenance
business discussed in note 11, the Group has not identified other impairment indicators and no other impairment was
recognised during the year.
Critical accounting judgements and key sources of estimation uncertainty – impairment of assets
For the 2025 and 2024 reporting periods, the recoverable amount of the Group's cash-generating units or group's of
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 forecast cash flows reflecting
remaining useful lives.
The key estimates and assumptions used in the assessment of recoverable amount include but are not limited to: asset
capacity; asset lives; generation and transmission volumes; forecast operating costs and margins; gas field reserve
estimates; future regulatory changes and legislative developments; 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 key assumptions used in
the assessment of recoverable amount of new assets, such as expected construction costs, time to commissioning,
revenues, operating and capital costs at the time of investment differ from the actual outcomes, significant variances to
the key assumptions may give rise to impairment indicators.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
162 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
14. Impairment of non-financial assets (continued)
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.
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 CGUs associated with 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.
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.
The recoverable amounts of the CGUs associated with the Pilbara Energy System are predicated on the execution of a
renewable-focused development pipeline and the related assumptions on expansion of capacity and revenue
contracting over time. Judgement is required to determine the appropriate estimates and assumptions. The acquisition
model is used as a starting point, with adjustments made for changes since acquisition.
Given the recency of the acquisition at fair value, the discounted cash flows supporting the recoverable amount of the
Pilbara Energy System group of CGUs are relatively close to carrying value, and are therefore sensitive to discount rates,
the timing and costs to complete development projects, operating costs and long-term contract revenues. Changes in
these variables may materially change the recoverable amount of the Pilbara Energy System CGUs and could lead to
impairment.
Consideration of climate-related risks and assumptions
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 2025 Climate Transition Plan, as well as climate risks, into its business strategy, processes and decision-
making. APA discloses 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 and assume that APA will be able to recover the cost of carbon through customer pass-through for facilities
currently under the Safeguard Mechanism as well as those that are anticipated to be captured under the scheme in the
future. Cash flow projections include operating expenditure commitments made through APA’s 2025 Climate Transition
Plan. Capital expenditure commitments from APA’s 2025 Climate Transition Plan are made at the APA Group level and will
be included in asset level cash flow projections as they are incorporated into asset management plans. As part of APA’s
2025 Climate Transition Plan, scenario analysis was performed for a selection of assets across APA’s East Coast, West
Coast Gas and Power Generation portfolios. Financial resilience was tested through assessing transition risks and
opportunities. Based on the scenario analysis, the selected assets were found to be financially resilient with no
impairment to carrying values across all climate scenarios considered.
APA does not currently 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.
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. Therefore, future cashflows may
differ from current expectations, which may impact the assessment of the recoverable value of the relevant assets.
Discount rates
The pre-tax discount rates used in the determination of the recoverable amount range between 7.4% p.a. to 8.7% p.a.
(2024: 8.3% p.a.). In determining appropriate discount rates for the recoverable amount assessment, consideration has
been given to current market assessments of time value of money and the Weighted Average Cost of Capital for the
Group, adjusted for risks specific to the asset or CGU that are not reflected in the underlying cash flows.
FY25 ANNUAL REPORT APA GROUP 163
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
14. Impairment of non-financial assets (continued)
Other key assumptions and sensitivity analysis
All estimates require judgements and assumptions and are subject to risk and uncertainty that may be beyond the
control of the Group, hence, there is a possibility that changes in circumstances will materially change the cash flow
projections, which in turn may impact the recoverable amount of an asset or CGU. Apart from those disclosed above,
the other estimates and assumptions that may impact the Group's recoverable amount determinations are:
•
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 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. This applies to the
regulatory conversion, including the regulatory asset base and consequent revenue determination of Basslink which
is currently ongoing and is expected to apply from 1 July 2026.
•
For certain assets single counterparty risk is more prevalent. The recoverable amounts of these assets include 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. As part
of the periodic carrying value review, the Group considered whether the concentration of counterparty exposure
gave rise to an indicator of impairment. No indicator of impairment existed as at 30 June 2025 for these assets.
•
Certain assets generate revenue under contractual arrangements that are currently subject to commercial
negotiations with customers. The outcome of these commercial matters remains uncertain at 30 June 2025.
Judgement has been applied in estimating the future cash flows associated with these assets, based on current
available information. Future cash flows associated with these assets may differ from current expectations, which
may affect the recoverable amount of the relevant assets. No impairment has been identified at 30 June 2025;
however, changes in key assumptions or the resolution of these matters may result in a reassessment of asset
recoverability. Matters subject to commercial negotiations as at 30 June 2025, that could lead to future impairment
risk represent less than 1% of total property, plant & equipment.
Moomba Sydney Ethane Pipeline (MSEP)
In FY24, the Group recognised a non-cash impairment charge of $144 million, resulting in a full write down of the property,
plant and equipment of the MSEP. This impairment was due to the Voluntary Administration of its sole customer, Qenos
Pty Ltd and the uncertainty over the potential alternative uses of the MSEP at that time. This impairment was disclosed as
a significant item within the Energy Infrastructure Segment.
During FY25, APA commenced a project to repurpose the MSEP for the transportation of natural gas, which is expected to
increase capacity on APA's East Coast Gas Grid and provide additional energy security to the east coast of Australia. The
repurposing project is expected to be completed in FY26.
The Group has reassessed the recoverability of the MSEP in accordance with AASB 136. Based on current information and
the stage of the repurposing project, no reversal of the prior impairment has been recognised as at 30 June 2025. The
Group will continue to monitor developments and reassess the asset’s carrying amount as the project progresses.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
164 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
15. Provisions
2025
2024
$m
$m
Employee benefits
135
149
Other
9
11
Current
144
160
Employee benefits
12
13
Restoration provision
401
373
Non-current
413
386
Employee benefits
Incentives
67
62
Leave balances
53
70
Other employee provisions
15
17
Current
135
149
Defined benefit liability (note 16)
—
2
Leave balances
12
11
Non-current
12
13
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.
Restoration provision
The Group's restoration provision is the best estimate of the present value of the expenditure required for:
•
Restoring leased assets to their original condition, as required by the terms and conditions of the lease; and
•
Future decommissioning and restoration of the Group’s energy infrastructure assets, 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 provision is reviewed regularly, with any changes in the restoration cost estimates 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 event the restoration provision is reduced, the cost of the related asset is reduced by an amount
not exceeding the asset carrying value. Changes in the estimates include those resulting from updated cost estimates,
changes in regulations, changes to the expected operating lives or timing of the restoration activities and revisions to
discount rates. Any change in assumptions are applied prospectively.
Movements in the restoration provision during the financial year are set out below:
Restoration
Provision
$m
Balance at 1 July 2024
373
Utilised during the year
(1)
Unwinding of discount
16
New provisions and changes to existing estimate
12
Acquired through asset acquisition ¹
1
Balance at 30 June 2025
401
1
On 24 June 2025, APA Group acquired the Atlas to Reedy Creek Pipeline and the associated restoration provision. Refer to note 24 for further details.
FY25 ANNUAL REPORT APA GROUP 165
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
15. Provisions (continued)
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. The estimate of future restoration costs requires judgemental assumptions
regarding the timing of restoration activities, environmental legislation and regulations which vary for different State
jurisdictions, the extent of restoration activities required and the available technologies.
The estimated future restoration costs of the Group's gas transmission pipelines include judgemental assumptions that
assume all the underground pipelines remain in-situ. This assumption reflects management's current expectation that
decommissioning in-situ is expected to result in a net environmental benefit compared to full removal and that
regulatory approval is anticipated to be obtained. This assumption is reviewed as part of the Group's periodic review of
restoration provisions, including as part of the Group's periodic review of Environmental Plans.
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 2025 as a result of changes in legislation and their application, 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 used in determining the amounts of provisions 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.
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 2025. 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:
2025
2024
$m
$m
Amounts recognised in the statement of profit or loss and other comprehensive income
Current service cost
2
2
Net interest (income)
(1)
—
Components of defined benefit costs recognised in profit or loss (note 5)
1
2
Actuarial gain on defined benefit plan
—
2
Actual return on plan assets excluding interest income
2
5
Components of defined benefit remeasurements recognised in other comprehensive income
2
7
Amounts recognised in the statement of financial position
Fair value of plan assets
59
139
Present value of benefit obligation
(53)
(134)
Defined benefit asset – non-current
6
7
Defined benefit liability – non-current (note 15)
—
(2)
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
166 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities (continued)
16. Employee superannuation plans (continued)
Movements in the present value of the defined benefit obligation in the period were as follows:
2025
2024
$m
$m
Opening defined benefit obligation
134
137
Current service cost
2
2
Interest cost
7
7
Actuarial gain
—
(2)
Benefits paid
(10)
(10)
Classified as held for sale ¹
(80)
—
Closing defined benefit obligation
53
134
1
Amount relates to APA's gas distribution operations and maintenance business and its Tamworth gas distribution network that are classified as held for sale
as at 30 June 2025, refer to Note 11 for further details.
Movements in the fair value of the plan assets in the period were as follows:
2025
2024
$m
$m
Opening fair value of plan assets
139
133
Interest income
8
7
Actual return on plan assets excluding interest income
2
5
Contributions from employer
4
4
Benefits paid
(10)
(10)
Classified as held for sale ¹
(84)
—
Closing fair value of plan assets
59
139
1
Amount relates to APA's gas distribution operations and maintenance business and its Tamworth gas distribution network that are classified as held for sale
as at 30 June 2025, refer to Note 11 for further details.
Defined benefit plans
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 (2024: 5.6%), based on the corporate bond yield curve published by Milliman, an expected salary increase
rate of 3.5% (2024: 3.8%), and pension indexation rate of 2.5% (2024: 2.8%). 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 $6 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 $5 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.
Expected employer contributions to the defined benefit plans during the year ending 30 June 2026 are $3 million, of
which $2 million relates to plans that are classified as held for sale at 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 12.0% from 1 July 2025.
FY25 ANNUAL REPORT APA GROUP 167
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 balance sheet capital structure.
APA Group's overall capital management strategy is to continue to target BBB/Baa2 investment grade credit ratings at
the same time as 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, 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 and
repay maturing debt.
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 2025 and 2024 periods.
APA Group's capital management strategy takes into consideration the cost of capital and the state of the capital
markets. 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 sustainable distribution growth;
•
Competitive investment hurdle rates;
•
Investment grade credit metrics provides access to capital markets;
•
Treasury policies to ensure strong levels of liquidity and minimise financial risk; and
•
Insightful communications ensuring strong investor engagement.
APA Group's Funds From Operations (FFO) to Net Debt at 30 June 2025 exceed 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 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 2025
168 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
17. 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.
Borrowings are recorded initially at fair value less attributable transaction costs and subsequently stated at amortised
cost.
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.
2025
2024
$m
$m
Cash at bank and on hand ¹
324
475
Short-term deposits
476
201
Cash and cash equivalents
800
676
Guaranteed senior notes ²
—
(1,895)
Secured third party borrowings
(5)
(5)
Other financial liabilities
(1)
(2)
Less: unamortised borrowing costs
2
3
Current borrowings
(4)
(1,899)
Guaranteed senior notes ²
(10,536)
(7,949)
Guaranteed subordinated notes ³
(892)
(800)
Guaranteed bank loans
(2,550)
(2,250)
Secured third party borrowings
(91)
(97)
Other financial liabilities
(2)
(3)
Less: unamortised borrowing costs
98
76
Non-current borrowings
(13,973)
(11,023)
Total borrowings
(13,977)
(12,922)
Current lease liabilities
(13)
(20)
Non-current lease liabilities
(29)
(50)
Total lease liabilities
(42)
(70)
Net debt
(13,219)
(12,316)
1
The amount shown in cash and cash equivalents includes $3 million not available for general use as at 30 June 2025 (30 June 2024: $2 million).
2
Represents JPY MTN of ¥10,000 million, GBP MTN of £1,250 million, EUR MTN of €2,350 million, and USD denominated 144a notes of US$2,400 million measured at
the exchange rate at reporting date (2024: 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). Refer to note 18 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 18 for details of interest rate and maturity profile.
FY25 ANNUAL REPORT APA GROUP 169
Notes to the consolidated financial statements (continued)
Capital Management (continued)
17. 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 2023
513
(202)
(11,321)
(63)
(11,073)
Cash movements
163
200
(1,718)
18
(1,337)
Non cash changes — leases
—
—
—
(25)
(25)
Non cash changes — acquisition ¹
—
(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
—
1
(4)
—
(3)
Net debt as at 30 June 2024
676
(1,899)
(11,023)
(70)
(12,316)
Net debt as at 1 July 2024
676
(1,899)
(11,023)
(70)
(12,316)
Cash movements ²
125
1,749
(2,165)
24
(267)
Non cash changes — leases
—
—
—
4
4
Foreign exchange movements on debt translation ³
—
154
(812)
—
(658)
Transfer from non-current to current
—
(8)
8
—
—
Movement of other items ⁴
(1)
—
19
—
18
Net debt as at 30 June 2025
800
(4)
(13,973)
(42)
(13,219)
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.
2
Cash movements include the proceeds from the issue of US 144a notes ($1,865 million) and bilateral term loan ($300 million) both executed in September
2024 (with the bilateral term loan drawn down in March 2025), repayment of 2015 US 144a in September 2024 and March 2025 ($1,543 million), 2012 GBP Bond in
November 2024 ($198 million) and secured third party borrowings and other financial liabilities ($7 million).
3
Foreign exchange movement on debt translation include $590 in hedge reserve, $55 million in finance costs as result of foreign currency translation loss on
borrowings where hedge accounting is no longer applied and $13 million in finance costs as result of 2015 USD 1.1bn 144A termination.
4 Movement of other items during the year include capitalised borrowing costs ($31 million), loan modification ($8 million), offset by amortisation of deferred
borrowing costs ($16 million), bond discount unwind ($4 million) and effect of exchange rate changes on cash ($1 million).
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
170 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
17. Net debt (continued)
2025
2024
$m
$m
Financing facilities available
Total facilities
Guaranteed senior notes ¹
10,536
9,844
Guaranteed subordinated notes ²
892
800
Guaranteed bank loans ³
2,550
2,250
Bank borrowings ⁴
1,600
1,600
Secured third party borrowings
96
102
15,674
14,596
Facilities used at balance date
Guaranteed senior notes ¹
10,536
9,844
Guaranteed subordinated notes ²
892
800
Guaranteed bank loans ³
2,550
2,250
Bank borrowings ⁴
—
—
Secured third party borrowings
96
102
14,074
12,996
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
—
—
1,600
1,600
1
Represents JPY MTN of ¥10,000 million, GBP MTN of £1,250 million, EUR MTN of €2,350 million, and USD denominated 144a notes of US$2,400 million measured at
the exchange rate at reporting date (2024: 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). Refer to note 18 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 18 for details of interest rate and maturity profile.
3
Syndicated facilities ($2,250 million) and bilateral term loan ($300 million).
4 Bilateral facilities comprising $200 million maturing in December 2025, $350 million maturing in December 2026, $400 million maturing in August 2027, $150
million maturing in December 2027 and $500 million maturing in July 2029.
FY25 ANNUAL REPORT APA GROUP 171
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management
APA Group's Treasury team is responsible for the overall management of the financial risks arising from financial market
activities undertaken by APA Group. The Treasury Risk Management Policy provides the framework and the risk
management parameters with respect to: liquidity and funding risk, foreign exchange risk, interest rate risk, counterparty
credit risk and operational risk.
The key financial risk for APA Group is liquidity and funding risk, which is the risk that APA Group is unable to meet its
financial obligations when they fall due. This risk is managed via a number of policy targets, including a minimum
liquidity ratio, limits on maturities in any given 12 month period, and a minimum weighted average term to maturity for
APA Group’s drawn debt portfolio.
Interest rate risk for APA Group arises predominantly from borrowings and this risk is managed by APA group maintaining
an appropriate mix of fixed and floating rate borrowings that is within the policy parameters.
Foreign exchange risk arises predominantly from: revenues received in foreign currencies, debt raised in foreign
currencies, capital expenditure and operational expenditure in foreign currencies. APA's policy is that forecast foreign
currency denominated revenues will be hedged into AUD on a rolling forward looking basis. For all foreign currency
denominated debt issued in the future, this debt and the related interest cashflows will be hedged into AUD. For existing
USD denominated debt (USD 1,186 million) that was previously in an accounting hedge relationship with WGP revenues
(discontinued in December 2024), these exposures are currently not hedged into AUD and will be hedged into AUD if the
defined policy parameters are met.
For all other foreign currency exposures such as capital expenditure and operating costs, these foreign exchange
exposures will be hedged into AUD if material and in general, on a portfolio basis, in line with the framework as per APA's
policy. As a result, 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 Board approves 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 counterparty credit
risk. APA Group's Board 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 18 (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 18 (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 18 (c)
Liquidity risk section.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
172 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. 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), foreign currency options and cross currency swap contracts
(CCS). All foreign currency exposure is managed in accordance with the
Treasury Risk Management Policy, including:
•
FECs and foreign currency options to hedge the exchange rate risk
arising from foreign currency cash flows, mainly US dollars, derived
from revenues, interest payments and capital equipment
purchases; and
•
CCS to manage the currency risk associated with foreign currency
denominated borrowings.
Interest rate
APA Group's interest rate risk arises
predominantly from borrowings.
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 risk
arising from its forward purchase
contracts over listed equities, and
electricity price risk arising from a
contract for difference in an
electricity sales agreement with a
customer.
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 risk is
managed with an electricity sales agreement with the creditworthy
counterparty. The key assumptions of the commercial contracts for
difference are provided in the fair value of financial instruments section.
Foreign currency risk
Foreign currency forward exchange contracts and foreign currency options
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 and foreign currency options. 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.
In December 2024, there was a change in risk management approach in relation to the WGP USD revenue and as a
result the hedge relationship with the debt instruments issued in USD or swapped to USD using cross currency swaps
(total USD 1,186 million) were discontinued. The relevant debt instruments are translated into AUD at balance sheet date
and the cross currency swaps are fair valued through profit or loss. Refer to note 5 for further information.
Within the table disclosed below, WGP USD revenues are hedged through FECs and foreign currency options. APA Group
has hedged almost all WGP USD revenues through to FY28. WGP USD revenue is contracted to be received through to
2035. There has been no other change to the nature of the market risks to which APA Group is exposed or the manner in
which these risks are measured.
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
Foreign
Net foreign
Cash & cash
Total
currency
exchange
currency
currency
equivalents
borrowings
swaps
contract
options
position
2025
$m
$m
$m
$m
$m
$m
US Dollar (USD) ¹
2
(3,649)
1,846
(1,824)
(775)
(4,400)
British Pound (GBP)
—
(2,607)
2,607
—
—
—
Euro (EUR)
—
(5,103)
5,103
8
—
8
Japanese Yen (JPY)
—
(105)
105
17
—
17
Swedish Krona (SEK)
—
—
—
5
—
5
2
(11,464)
9,661
(1,794)
(775)
(4,370)
1
Foreign currency exposure associated with USD revenue and receivables are managed by forward exchange contracts and foreign currency options.
FY25 ANNUAL REPORT APA GROUP 173
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
Cross
Forward
Foreign
Net foreign
Cash & cash
Total
currency
exchange
currency
currency
equivalents
borrowings
swaps
contract
options
position
2024
$m
$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)
1
Foreign currency exposure associated with USD revenue and receivables are managed by forward exchange contracts and foreign currency options.
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 foreign currency options 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 foreign
currency options 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 and foreign currency options, which is not reflected in the fair value
of the hedged item attributable to changes in foreign exchange rates. The effect of credit risk is a small component of
the value changes that result from that economic relationship.
As at the reporting date, APA Group has entered into FECs and foreign currency options to hedge the foreign currency
exposure arising from anticipated future transactions, which are designated in cash flow hedge relationships. 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
2025
contract rate
$m
$m
$m
$m
$m
Forecast revenue and associated receivable
Sell USD ¹
0.6481
675
775
1,555
—
46
Forecast capital purchases and operating costs
Buy USD
0.6379
(20)
(12)
—
—
(1)
Buy GBP
0.5022
(7)
—
—
—
—
Buy EUR
0.5888
(8)
(8)
—
—
1
Buy SEK
6.4440
(1)
(1)
(3)
—
—
Forecast foreign currency borrowings
Buy USD ²
0.6501
(101)
(83)
(154)
—
(4)
538
671
1,398
—
42
1
APA manages the foreign currency risk with respect to the USD denominated WGP monthly revenue via a rolling FX hedging program. The instruments are
used to manage the foreign currency risk include FECs and foreign currency options.
2
APA manages the foreign currency risk with respect to USD denominated interest payments using FECs and foreign currency options.
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 FECs 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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
174 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. 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 that were previously in a hedge accounting relationship with WGP USD revenue, are
retained in their denominated currency.
The following table details the cross currency swap contract principal payments due as at the reporting date:
Contract Value
Foreign
Exchange
< 1 year
1 - 2 years
2 - 5 years
> 5 years
2025
currency
rate
$m
$m
$m
$m
Cash flow hedges
Pay AUD / receive foreign currency
2015 EUR Medium Term Notes
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)
—
2024 US 144A
AUD/USD
0.6652
—
—
—
(1,879)
Fair value through profit or loss
Pay USD / receive foreign currency
2015 GBP Medium Term Notes
USD/GBP
0.6773
—
—
(1,347)
—
—
(1,038)
(4,211)
(4,998)
Contract Value
Foreign
Exchange
< 1 year
1 - 2 years
2 - 5 years
> 5 years
2024
currency
rate
$m
$m
$m
$m
Cash flow hedges
Pay AUD / receive foreign currency
2012 GBP Medium Term Notes
AUD/GBP
0.6530
(198)
—
—
—
2015 EUR Medium Term Notes
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)
FY25 ANNUAL REPORT APA GROUP 175
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
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 GBP, and EUR 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 decrease by $466 million with a 20 percent depreciation of AUD or increase by $312 million with a 20
percent increase in AUD primarily due to borrowings and derivatives where hedge accounting is no longer applied
(2024: decrease by $3 million or increase by $2 million respectively); and
•
Equity reserves would decrease by $611 million with a 20 percent depreciation of the AUD or increase by $409 million
with a 20 percent increase in AUD (2024: decrease by $869 million or increase by $581 million respectively).
Interest rate risk
APA Group's interest rate risk arises predominantly 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
$800 million as at 30 June 2025 (2024: $676 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 the 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
foreign currency exchange rates. The effect of credit risk is a small component of 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 Notional principal amount
Fair value
2025
2024
2025
2024
2025
2024
% 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
4.31
—
1,538
—
105
—
2 years to 5 years
5.23
4.59
4,712
5,586
159
104
5 years and more ¹
4.82
4.30
8,298
5,697
(140)
(435)
14,548
11,481
124
(287)
1
This amount includes notional amount of USD 886 million (2024: USD 886 million) which is fair valued through profit or loss following the WGP hedge
discontinuation in December 2024. All other 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.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
176 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. 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 or BBSY. APA Group will settle the difference between the fixed
and floating interest rate on a net basis.
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
2025
2024
2025
2024
2025
2024
$m
$m
$m
$m
$m
$m
Foreign exchange risk
Hedging revenue and foreign currency
borrowings (cross currency swap)
397
(262)
(391)
312
427
436
Hedging revenue and associated receivables
(foreign currency borrowings)
—
(69)
—
69
—
69
Hedging revenue and associated receivables
(FECs)
22
(32)
(22)
32
(29)
29
Hedging revenue and associated receivables
(Options)
19
—
(19)
—
(19)
—
Hedging foreign currency borrowings (FECs)
—
95
—
(95)
—
25
Hedging capital purchases (FECs)
1
—
(1)
—
(1)
—
Interest rate risk
Hedging AUD borrowings (IRS)
(111)
(25)
112
26
112
26
328
(293)
(321)
344
490
585
Change in fair values of
hedge instruments ¹
Change in fair values of
hedged items ¹
2025
2024
2025
2024
$m
$m
$m
$m
Foreign exchange risk
Hedging revenue and foreign currency borrowings (cross currency
swap)
703
9
(747)
30
Hedging revenue and associated receivables (foreign currency
borrowings)
69
—
(69)
—
Hedging revenue and associated receivables (FECs)
26
14
(26)
(14)
Hedging revenue and associated receivables (Options)
19
—
(19)
—
Hedging foreign currency borrowings (FECs)
—
6
—
(6)
Hedging capital purchases (FECs)
1
—
(1)
—
Interest rate risk
Hedging AUD borrowings (IRS)
(86)
(50)
86
50
732
(21)
(776)
60
1
This table excludes change in fair values of forecast transactions no longer expected to occur.
FY25 ANNUAL REPORT APA GROUP 177
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
Hedge effectiveness gain /
(loss) ¹
Balance relating to
discontinued cash flow
2025
2024
2025
2024
$m
$m
$m
$m
Foreign exchange risk
Hedging revenue and foreign currency borrowings (cross currency
swap)
1
(1)
424
178
Hedging revenue and associated receivables (foreign currency
borrowings)
—
—
87
43
Hedging revenue and associated receivables (FECs)
—
—
—
—
Hedging foreign currency borrowings (FECs)
—
—
—
—
Hedging capital purchases (FECs)
—
—
—
—
Interest rate risk
Hedging US$ denominated borrowings (interest rate swap)
—
—
14
18
1
(1)
525
239
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 decrease by $130 million
with a 100 basis point decrease in interest rates or increase by $123 million with a 100 basis point increase in interest rates
(2024: decrease by $105 million or increase by $108 million respectively). This is due to the changes in the fair value of
derivative interest instruments used for hedging. APA Group's net profit would decrease by $6 million with a 100 basis
point decrease in interest rates or increase by $5 million with a 100 basis point increase in interest rates (2024: nil). This is
due to the changes in the fair value of derivative interest instruments which are fair valued through profit or loss.
The increase/decrease 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 a contract for difference in an electricity sales agreement with
a customer. The contract guarantees the Group a fixed price for electricity offtake. 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 2025
178 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. 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 mitigates this risk by dealing with creditworthy counterparties or obtaining sufficient collateral or bank
guarantees where deemed appropriate. 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. 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 Board. These limits are
regularly reported to the Audit and Finance Committee.
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 2025 has been determined to be immaterial and no liability has been recorded (2024:
$nil).
FY25 ANNUAL REPORT APA GROUP 179
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
(c) Liquidity risk
APA Group policy details the requirements of 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
2025
Maturity
% p.a.
$m
$m
$m
Secured financial liabilities
Secured third party borrowings
23-Nov-41
2.25
7
28
49
Secured third party borrowings ¹
23-Nov-46
—
—
—
24
Unsecured financial liabilities
Trade and other payables
446
—
—
Guaranteed bank loans ²
20-July-31
5.12
25
101
530
Guaranteed bank loans ²
20-July-31
5.32
25
103
532
Guaranteed bank loans ²
31-July-32
6.17
48
193
850
Guaranteed bank loans ²
31-Oct-33
7.18
36
144
625
Denominated in A$
Other financial liabilities
3
2
—
Guaranteed Senior Notes
Denominated in US$
2015 US 144A ³
23-Mar-35
5.00
23
91
570
2017 US 144A
15-July-27
4.25
59
1,196
—
2024 US 144A
16-Sept-34
5.13
70
281
1,443
2024 US 144A
16-Sept-44
5.75
53
212
1,518
Denominated in stated foreign currency
2015 GBP Medium Term Notes ³
22-Mar-30
3.50
60
1,588
—
2015 EUR Medium Term Notes
22-Mar-27
2.00
46
1,084
—
2019 GBP Medium Term Notes
18-July-31
3.13
34
135
793
2019 JPY Medium Term Notes
13-June-34
1.03
6
22
155
2020 EUR Medium Term Notes
15-July-30
2.00
39
157
1,037
2021 EUR Medium Term Notes
15-Mar-29
0.75
27
1,010
—
2021 EUR Medium Term Notes
15-Mar-33
1.25
29
117
861
2021 GBP Medium Term Notes
15-Mar-36
2.50
19
77
567
Guaranteed Subordinated Notes
Denominated in EUR
2023 EUR Hybrid Notes
09-Feb-29
7.13
77
1,059
—
1,132
7,600
9,554
1
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.
2
Bank facilities mature on 20 July 2031 ($1.0 billion limit), 31 July 2032 ($750 million limit) and 31 October 2033 ($500 million limit). The facilities are fully drawn at
reporting date.
3
Liabilities are denominated in or fully swapped by way of CCS into USD. Cash flows represent the USD cash flow translated at the USD/AUD spot rate as at
30 June 2025.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
180 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
Contract Value
Average
interest rate
< 1 year
1 - 5 years
> 5 years
2024
Maturity
% p.a.
$m
$m
$m
Secured financial liabilities
Secured third party borrowings ¹
23-Nov-41
2.25
7
28
57
Secured third party borrowings ¹˒²
23-Nov-46
—
—
—
24
Unsecured financial liabilities
Trade and other payables
555
—
—
Guaranteed bank loans ³
20-May-27
4.92
24
549
—
Guaranteed bank loans ³
20-May-29
5.23
26
605
—
Guaranteed bank loans ³
31-Oct-30
6.75
51
202
825
Guaranteed bank loans ³
31-Oct-33
7.18
36
143
661
Denominated in A$
Other financial liabilities
2
4
—
Guaranteed Senior Notes ³
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.
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 Liabilities are denominated in or fully swapped by way of CCS into USD. Cash flows represent the USD cash flow translated at the USD/AUD spot rate as at
30 June 2024. These amounts are fully hedged by FECs or future USD revenues.
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.
FY25 ANNUAL REPORT APA GROUP 181
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. 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 2025 (2024: 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 foreign currency options are calculated using option pricing models based on observable foreign
exchange rates and option volatility at the end of the reporting period. 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 and equity prices) 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 2025
182 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
Contract for difference
The financial statements include a contract 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. The contract is at fair value. The fair
value of the contract 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;
•
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
•
This instrument is 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.
Unlisted investment fund
The financial statements include APA's investment in an unlisted fund focused on nature-based investment strategies.
APA does not control, jointly control, or exert significant influence over the fund and therefore accounts for this
investment as a financial asset in the scope of AASB 9 Financial Instruments. The Group's investment in the fund is
classified as a debt instrument measured at fair value through the profit or loss. The fair value is determined based on
the net asset value of the underlying fund.
Fair value hierarchy
Level 1
Level 2
Level 3
Total
2025
$m
$m
$m
$m
Financial assets measured at fair value
Cross currency swap contracts used for hedging
—
643
—
643
Foreign currency forward exchange contracts used for hedging
—
50
—
50
Foreign currency options used for hedging
—
20
—
20
Contracts for difference
—
—
7
7
Unlisted investment fund
—
—
6
6
—
713
13
726
Financial liabilities measured at fair value
Interest rate swaps used for hedging
—
111
—
111
Equity forwards designated as fair value through profit or loss
—
2
—
2
Cross currency swap contracts used for hedging
—
246
—
246
Cross currency swap contracts at fair value through profit or loss
—
162
—
162
Foreign currency forward exchange contracts used for hedging
—
26
—
26
Foreign currency options used for hedging
—
2
—
2
Indexed revenue contract
—
12
—
12
—
561
—
561
FY25 ANNUAL REPORT APA GROUP 183
Notes to the consolidated financial statements (continued)
Capital Management (continued)
18. Financial risk management (continued)
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 options 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
Reconciliation of Level 3 fair value measurements
2025
2024
$m
$m
Opening balance
(7)
10
Revaluation
6
(20)
Settlement
9
3
Purchases
5
—
Closing balance
13
(7)
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
2025
2024
2025
2024
$m
$m
$m
$m
Financial liabilities
Unsecured Japanese Yen Medium Term Notes
105
93
97
84
Unsecured US Dollar 144A Medium Term Notes ²
3,604
3,367
3,713
3,313
Unsecured British Pound Medium Term Notes
2,595
2,606
2,354
2,268
Unsecured Euro Medium Term Notes
4,194
3,753
3,888
3,268
Unsecured Euro Hybrid Notes
887
793
982
848
11,385
10,612
11,034
9,781
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 September 2024, APA issued an aggregate USD 1,250 million of senior guaranteed notes, comprising of a 10-year USD 750 million (AUD 1,127 million) note at
5.125% (swapped to 6.22%) per annum and a 20-year USD 500 million (AUD 752 million) note at 5.75% (swapped to 7.02%) per annum.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
184 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Other financial instruments
Assets
Liabilities
2025
2024
2025
2024
$m
$m
$m
$m
Derivatives at fair value:
Contracts for difference
—
—
—
11
Equity forward contracts
—
—
1
1
Cross currency swaps
—
—
16
—
Derivatives at fair value designated as hedging instruments:
Cross currency swaps - cash flow hedges ¹
13
57
144
154
Foreign exchange contracts - cash flow hedges ²
8
111
26
44
Interest rate swaps - cash flow hedges ¹
—
8
22
5
Current
21
176
209
215
Derivatives at fair value:
Contracts for difference
7
4
—
—
Equity forward contracts
—
—
1
4
Indexed revenue contracts
—
—
12
14
Cross currency swaps
—
—
150
—
Derivatives at fair value designated as hedging instruments:
Cross currency swaps - cash flow hedges
643
173
134
359
Foreign exchange contracts - cash flow hedges ²
42
19
—
23
Foreign currency options - cash flow hedges ³
20
—
2
—
Interest rate swaps - cash flow hedges
—
14
91
43
Financial items at fair value:
Unlisted investment fund
6
—
—
—
Financial items carried at amortised cost:
Redeemable preference shares ⁴
10
10
—
—
Non-current
728
220
390
443
1
Derivatives at fair value for Cross currency swaps and Interest rate swaps include interest receivables and payables.
2
Certain new foreign exchange contracts meet the offsetting criteria in AASB 132: Presentation at 30 June 2025. Of the $50 million asset, a gross asset of $20
million and a gross liability of $11 million have been netted to a $9 million asset. The remaining amounts are presented on a gross basis.
3
Foreign currency options meet the offsetting criteria in AASB 132: Presentation at 30 June 2025. A gross asset of $74 million and a gross liability of $56 million
have been netted to a $20 million asset and $2 million liability at 30 June 2025.
4 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
Fair value measurement
For information about the methods and assumptions used in determining the fair value of financial instruments refer to
note 18.
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.
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.
FY25 ANNUAL REPORT APA GROUP 185
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. 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 include the effect of the changes in fair value of the foreign currency basis spread of a
financial instrument and time value of foreign currency options. The foreign currency basis spread of a financial
instrument and time value of options are excluded from the designation of financial instruments as the hedging
instruments (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 and time value of options of
financial instruments, 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.
2025
2024
$m
$m
Balance at beginning of financial year
(571)
(717)
(Loss)/gain recognised taken to equity:
Loss arising on changes in fair value of hedging instruments
(552)
(88)
Changes in cost of hedging reserve during the year
21
43
Share of hedge reserve of associate
(7)
(9)
Amount reclassified to P&L for forecast transactions no longer expected to occur
—
22
Amount reclassified to P&L for effective hedges
339
240
Tax effect
59
(62)
Balance at end of financial year
(711)
(571)
In 2025, the cost of hedging reserve balance at the beginning of the financial year is $48 million and at the end of the
financial year is $89 million (2024: $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 2025
186 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
19. Other financial instruments (continued)
Impairment of financial assets
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 18, 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.
20. Issued capital
2025
2024
$m
$m
Units
1,304,487,508 securities, fully paid (2024: 1,283,352,928 securities, fully paid) ¹
2,526
2,400
2025
2024
No. of units
2025
No. of units
2024
in millions
$m
in millions
$m
Movements
Balance at beginning of financial year
1,283
2,400
1,180
1,964
Capital distributions paid (note 8)
—
(22)
—
(177)
Issue of securities under institutional share placement ²
—
—
79
475
Issue of securities under retail security purchase plan ³
—
—
23
141
Issue of securities under distribution reinvestment plan ⁴ ⁵ ⁶
21
148
1
2
Security issue costs
—
—
—
(5)
Balance at end of financial year
1,304
2,526
1,283
2,400
1
Fully paid units carry one vote per unit and carry the right to distributions.
2
In the prior year, 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
In the prior year, 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 On 17 March 2025, the distribution declared for December 2024 resulted in $65 million being raised by the distribution reinvestment plan through the issue of
9.5 million stapled securities at a price of $6.76, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
5
On 18 September 2024, the distribution declared for June 2024 resulted in $91 million being raised by the distribution reinvestment plan through the issue of
11.6 million stapled securities at a price of $7.82, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
6 In the prior year, on 14 March 2024, the distribution declared for December 2023 resulted in $3 million being raised by the distribution reinvestment plan
through the issue of 0.4 million stapled securities at a price of $8.27.
The Trust does not have a limited amount of authorised capital.
FY25 ANNUAL REPORT APA GROUP 187
Notes to the consolidated financial statements (continued)
Group Structure
21. 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.
2025
2024
$m
$m
Financial position
Non-current assets
748
747
Total assets
748
747
Total liabilities
—
—
Net assets
748
747
Equity attributable to non-controlling interests
748
747
Financial performance
Revenue
32
25
Expenses
(2)
(5)
Profit for the year
30
20
Total comprehensive income allocated to non-controlling interests for the year
30
20
Cash flows
Net cash provided by operating activities
30
25
Net cash used in investing activities
(1)
(184)
Proceeds from issue of securities, net of costs
—
257
Distributions paid to non-controlling interests, net of DRP issuance
(29)
(97)
Net cash (used in) / provided by financing activities
(29)
160
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.
2025
2024
$m
$m
APA Investment Trust
748
747
Equity attributable to non-controlling interests
748
747
APA Investment Trust
Issued capital:
Balance at beginning of financial year
734
555
Distribution – capital return (note 8)
(8)
(78)
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
8
1
734
734
Retained earnings:
Balance at beginning of financial year
13
12
Net profit attributable to APA Investment Trust unitholders
30
20
Distributions paid (note 8)
(29)
(19)
14
13
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
188 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Group Structure (continued)
22. 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
2025
2024
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
2025
2024
$m
$m
Investment in joint ventures and associates using the equity method
253
262
Joint Ventures
Aggregate carrying amount of investment
232
237
APA Group's aggregated share of:
Profit from continuing operations
20
19
Other comprehensive income
(5)
(8)
Total comprehensive income
15
11
Associates
Aggregate carrying amount of investment
21
25
APA Group's aggregated share of:
Profit from continuing operations
5
6
Other comprehensive income
(2)
(1)
Total comprehensive income
3
5
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.
Interest in joint arrangements
A joint arrangement is an arrangement whereby two or more parties have joint control i.e. 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 one type of joint arrangement being joint ventures, where the parties that share joint
control have rights to the net assets of the arrangement.
Investments in Joint ventures and associates are accounted for using the equity accounting method.
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.
FY25 ANNUAL REPORT APA GROUP 189
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Subsidiaries
Subsidiaries are entities controlled by APA Infrastructure Trust. The country of registration or incorporation is also
considered the principal place of business of each subsidiary.
Ownership interest
Country of registration/
2025
2024
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 (Chichester) Pty Ltd
2,6,7
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 (Newman Storage) Pty Ltd
2,3,6
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
2,3,⁹
Australia
100
100
APA BIDCO Pty Limited
2,3
Australia
100
100
APA Biobond Pty Limited
2,3
Australia
100
100
APA BK Holdco Pty Ltd
2,3
Australia
100
–
APA Brigalow Pipeline Pty Ltd
2,3
Australia
100
–
APA Bulloo Interlink Pipeline Pty Ltd
2,3
Australia
100
–
APA Country Pipelines Pty Limited
2,3
Australia
100
100
APA DEWAP Pty Ltd
2,3,6
Australia
100
100
APA DEWAH Pty Ltd
2,3,6
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 GGT Holdings Pty Ltd
2,3,6
Australia
100
100
APA GGT Pty Limited
2,3,6
Australia
100
100
APA GGT Sub Pty Limited
2,3,6
Australia
100
100
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
190 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Subsidiaries (continued)
Ownership interest
Country of registration/
2025
2024
Name of entity
incorporation
%
%
APA Group Equity Trust
-
100
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 Pilbara Finance Pty Ltd
2,6
Australia
100
100
APA Pilbara Holdings Pty Ltd
2,3,6
Australia
100
100
APA Pilbara Solar Holdings Pty Ltd
2,6
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 Power PF Pty Limited
2,3
Australia
100
100
APA Reedy Creek Wallumbilla Pty Limited
2,3
Australia
100
100
APA Riverina Pipeline Pty Ltd
2,3
Australia
100
–
APA SEA Gas (Mortlake) Holdings Pty Ltd
2,3
Australia
100
100
APA SEA Gas (Mortlake) Pty Ltd
2
Australia
100
100
APA SPP (Holdco) Pty Ltd
2,3
Australia
100
–
APA SPP Pty Ltd
2,3
Australia
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 (Chichester) Pty Ltd
2,6,7
Australia
100
100
APA Transmission (Roy Hill) Finance Pty Ltd
2,3,6
Australia
100
100
APA Transmission (Roy Hill) Holdings Pty Ltd
2,3,6
Australia
100
100
APA Transmission (Roy Hill) Pty Ltd
2,3,6
Australia
100
100
APA Transmission (Roy Hill) Sub Pty Ltd
2,3,6
Australia
100
100
APA Transmission Pty Limited
2,4
Australia
100
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 Limited
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
APT (MIT) Services Pty Limited
2,3
Australia
100
100
APT AM (Stratus) Pty Limited
2,3,⁹
Australia
100
100
APT AM Employment Pty Limited
2,3,⁹
Australia
100
100
APT AM Holdings Pty Limited
2,3,⁹
Australia
100
100
APT Facility Management Pty Limited
2,3
Australia
100
100
APT Goldfields Pty Ltd
2,3
Australia
100
100
FY25 ANNUAL REPORT APA GROUP 191
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Subsidiaries (continued)
Ownership interest
Country of registration/
2025
2024
Name of entity
incorporation
%
%
APT Management Services Pty Limited
2,3
Australia
100
100
APT O&M Holdings Pty Ltd
2,3,⁹
Australia
100
100
APT O&M Services (QLD) Pty Ltd
2,3,⁹
Australia
100
100
APT O&M Services Pty Ltd
2,3,⁹
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
ARC Pipeline Pty Ltd ⁸
Australia
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
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
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
192 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Group Structure (continued)
23. Subsidiaries (continued)
Ownership interest
Country of registration/
2025
2024
Name of entity
incorporation
%
%
Griffin Windfarm 2 Pty Ltd
2
Australia
100
100
InfraEnergy Solutions Pty Limited
2,3
Australia
100
100
Moomba to Sydney Ethane Pipeline Trust
2,4
-
100
100
N.T. Gas Distribution Pty Limited
2,3
Australia
100
100
N.T. Gas Pty Limited
5
Australia
–
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 was deregistered on 14 May 2025.
6 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) completed in the prior financial year (on 1 November 2023).
7
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.
8 ARC Pipeline Pty Ltd was acquired on 24 June 2025 as part of the Atlas to Reedy Creek Pipeline asset acquisition. Refer to Note 24 for further details.
9
These entities are classified as held for sale at 30 June 2025. Refer to Note 11 for further details.
FY25 ANNUAL REPORT APA GROUP 193
Notes to the consolidated financial statements (continued)
Other items
24. Acquisition of Atlas to Reedy Creek Pipeline Asset
On 24 June 2025, APA Group completed the acquisition of 100% of the issued share capital of ARC Pipeline Pty Ltd which
owns the Atlas to Reedy Creek Pipeline (ARCP), for a total purchase consideration of $117 million inclusive of transaction
costs.
The ARCP is a 56km 189 TJ/day operational gas transmission pipeline located near Wandoan in Queensland. Mechanical
completion of the ARCP was achieved in January 2025, with first gas flowing in February 2025.
The acquisition is underpinned by a 20-year, 60 TJ/day take-or-pay Gas Transportation Agreement (GTA) with Senex CSG
Assets Pty Ltd (Senex), an existing East Coast Gas Grid customer. The ARCP transports gas from Senex’s Atlas East
Compression Facility to APA’s Reedy Creek to Wallumbilla Pipeline (RCWP), which has a maximum capacity of 520 TJ/day.
At the acquisition date, substantially all of the gross fair value of the identifiable assets acquired is concentrated in a
single identifiable asset, being the gas transmission pipeline and the related facilities, classified within property, plant
and equipment. The Directors have elected to apply the optional concentration test allowed under AASB 3 Business
Combinations and concluded that the transaction does not constitute a business combination. Accordingly, the
transaction has been accounted for as an asset acquisition.
Details of the purchase consideration inclusive of transaction costs and its allocation to the individual identifiable assets
and liabilities at the date of the acquisition are set out below:
$m
Cash consideration
110
Transaction costs
7
Purchase consideration
117
Net assets acquired
$m
Non-current assets
Property, plant and equipment ¹
118
Non-current assets
118
Total assets
118
Non-current liabilities
Provisions
(1)
Non-current liabilities
(1)
Total liabilities
(1)
Net assets acquired
117
1
Transaction costs of $7 million include estimated stamp duty and acquisition costs. Transaction costs have been capitalised into the cost of the pipeline in
accordance with AASB 116 Property, Plant & Equipment.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
194 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Other items (continued)
25. Commitments and contingencies
2025
2024
$m
$m
Capital expenditure commitments
APA Group - plant and equipment
232
209
Contingent liabilities
Bank guarantees
50
47
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, these are disclosed as contingent assets or liabilities. This includes
exposure to matters such as regulatory requirements, changes in law, climate 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.
As at 30 June 2025 and 30 June 2024 APA Group had no material contingent liabilities, other than the bank guarantees
disclosed above. APA Group had nil contingent assets as at 30 June 2025 and 30 June 2024.
26. Director and Executive Key Management Personnel remuneration
Remuneration of Directors
The aggregate remuneration of Directors of APA Group is set out below:
2025
2024
$
$
Short-term employment benefits
1,803,043
1,742,212
Post-employment benefits
167,964
165,545
Total remuneration: Non-Executive Directors¹
1,971,007
1,907,757
Short-term employment benefits
2,923,700
2,475,001
Post-employment benefits
29,932
27,399
Equity settled security-based payments
1,039,049
900,215
Total remuneration: Executive Director
3,992,681
3,402,615
Total remuneration: Directors
5,963,688
5,310,372
Remuneration of Executive Key Management Personnel
The aggregate remuneration of Executive Key Management Personnel of APA Group is set out below:
2025
2024
$
$
Short-term employment benefits
7,178,134
5,966,026
Post-employment benefits
119,728
102,746
Cash settled security-based payments
—
92,405
Equity settled security-based payments
2,765,224
1,802,626
Total remuneration: Executive Key Management Personnel²
,³
10,063,086
7,963,803
.
1
Non-executive Directors remuneration includes remuneration for Varya Davison (appointed 1 March 2025), Samantha (Sam) Lewis (appointed 1 October
2024) and David Lamont (appointed 1 October 2024). In addition, Non-executive Director remuneration includes the remuneration of Debra (Debbie) Goodin
(retired 24 February 2025) and Peter Wasow (retired 24 October 2024) until their respective dates of retirement.
2
Executive Key Management Personnel includes Adam Watson (Chief Executive Officer), Garrick Rollason (Chief Financial Officer), Petrea Bradford (Group
Executive Operations) and Darren Rogers (Group Executive Energy Solutions).
3
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 FY25.
FY25 ANNUAL REPORT APA GROUP 195
Notes to the consolidated financial statements (continued)
Other items (continued)
27. Remuneration of external auditor
2025
2024
$
$
Amounts received or due and receivable by Deloitte Touche Tohmatsu for:
Audit or review of the financial reports:
Group
1,014,200
1,216,200
Subsidiaries
139,800
150,500
Total audit or review of the financial reports
1
1,154,000
1,366,700
Audit or review of the regulatory financial reporting to the Australian Energy Regulator and
Economic Regulation Authority
Subsidiaries
700,000
627,600
Total audit or review of the financial reports
700,000
627,600
Statutory assurance services required by legislation to be provided by the auditor
Agreed-upon procedures in relation to ASIC Regulatory Guide 231 requirements ²
13,400
12,900
ASIC compliance plan audit
25,000
24,100
Australian financial services licence audit
9,800
9,500
Total statutory assurance services required by legislation to be provided by the auditor
48,200
46,500
Other assurance services ³
745,390
958,600
Total assurance services
2,647,590
2,999,400
Non-audit services ⁴ ⁵
41,229
208,505
Total remuneration of external auditor
2,688,819
3,207,905
1
Audit or review in the year ended 30 June 2024 included procedures over the acquisition of Pilbara Energy System ('PES').
2
Service provided includes agreed-upon procedures in relation to ASIC Regulatory Guide 231 requirements.
3
Services provided were in accordance with the external auditor independence policy. These services include:
•
agreed upon procedure engagements in relation to the FY25 US 144A debt raising,
•
assurance engagements relating to APA’s Climate Transition Plan and reported sustainability metrics; and
•
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 In the year ended 30 June 2025 services provided were in accordance with the external auditor independence policy. Non-audit services mainly comprise of
enhanced methane reporting assurance readiness assessments..
5
In the year ended 30 June 2024 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 were 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. These services were
ceased during FY24 and are not expected in future years.
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
196 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Other items (continued)
28. Related party transactions
(a) Equity interest in related parties
Details of the percentage of ordinary securities held in subsidiaries are disclosed in note 23 and the details of the
percentage held in joint operations, joint ventures and associates are disclosed in note 22.
(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 23 for details of the entities that comprise APA Group.
Management fees of $7 million (2024: $7 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 26.
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
2025
$'000
$'000
$'000
$'000
$'000
$'000
SEA Gas
13,527
—
2,637
—
—
9
Energy Infrastructure Investments
3,279
—
46,483
—
7,205
—
EII 2
3,227
—
946
—
356
—
GDI (EII)
7,284
—
73,125
—
8,661
—
27,317
—
123,191
—
16,222
9
2024
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
—
FY25 ANNUAL REPORT APA GROUP 197
Notes to the consolidated financial statements (continued)
Other items (continued)
29. 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.
2025
2024
$m
$m
Financial position
Assets
Current assets
2,533
2,140
Non-current assets
610
620
Total assets
3,143
2,760
Liabilities
Current liabilities
617
347
Total liabilities
617
347
Net assets
2,526
2,413
Equity
Issued capital
2,526
2,400
Retained earnings
1
13
Total equity
2,527
2,413
Financial performance
Profit for the year
657
418
Total comprehensive income
657
418
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 (2024: $nil).
Contingent liabilities of the parent entity
Refer to note 25 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 2025
198 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Other items (continued)
30. Adoption of new and revised Accounting Standards
New and amended Accounting Standards that are effective for the current period:
•
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current
•
AASB 2022-6 Amendments to Australian Accounting Standards - Non-current Liabilities with Covenants
•
AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements
•
AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leasebacks
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.
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 a material impact on APA Group's accounting policies or any of the amounts recognised in
the financial statements.
In June 2024, the AASB issued a new presentation and disclosure standard, AASB 18 Presentation and Disclosure in
Financial Statements (AASB 18) which sets out requirements for the presentation and disclosure of information in general
purpose financial statements. AASB 18 will be applicable for the Group from 1 July 2027. The adoption of this standard is
not expected to change the recognition and measurement of items in the Group's financial statements however it is
expected to affect the presentation and disclosures in the Group's financial statements.
Sustainability Standards
In September 2024, the AASB issued the first two Australian Sustainability Reporting Standards.
•
AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information - a voluntary standard
covering disclosure of all sustainability-related risks and opportunity.
•
AASB S2 Climate-related Disclosures - a mandatory standard covering disclosure of climate-related risks and
opportunities.
The Standards will be effective for the Group from 1 July 2025, with earlier adoption permitted.
31. Events occurring after reporting date
Divestment of gas distribution operations and maintenance entities
On 19 August 2025, the Group executed an agreement to divest its Networks business, including entities which undertake
gas distribution operations and maintenance business, to Australian Gas Infrastructure Group (AGIG). The transaction is
expected to complete around the second quarter of FY26, subject to satisfaction of conditions precedent, including
separation and completion readiness activities. As at 30 June 2025, the Networks business disposal group has been
classified as held for sale. Refer to Note 11 of the APA Infrastructure Trust Financial Report for further details on the
classification and its impact on the financial statements.
Final distribution declaration
On 20 August 2025, the Directors declared a final distribution of 30.0 cents per security ($391 million) for APA Group, an
increase of 1.7%, or 0.5 cent per security over the previous corresponding period (2024: 29.5 cents per security). This
comprises a distribution of 22.61 cents per security from APA Infrastructure Trust and a distribution of 7.39 cents per
security from APA Investment Trust.
The APA Infrastructure Trust distribution represents 6.47 cents per security fully franked profit distribution and 16.14 cents
per security capital distribution. The APA Investment Trust distribution represents a 1.10 cent per security unfranked profit
distribution and 6.29 cents capital distribution. The distribution is expected to be paid on 10 September 2025.
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.
FY25 ANNUAL REPORT APA GROUP 199
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, 20 August 2025
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
200 APA GROUP FY25 ANNUAL REPORT
Auditor's Independence Declaration
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
FY25 ANNUAL REPORT APA GROUP 201
Independent Auditor's Report
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
202 APA GROUP FY25 ANNUAL REPORT
Independent Auditor's Report (continued)
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
FY25 ANNUAL REPORT APA GROUP 203
Independent Auditor's Report (continued)
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
204 APA GROUP FY25 ANNUAL REPORT
Independent Auditor's Report (continued)
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
FY25 ANNUAL REPORT APA GROUP 205
Independent Auditor's Report (continued)
APA INFRASTRUCTURE TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
206 APA GROUP FY25 ANNUAL REPORT
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 2025. 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
Varya Davidson
1 March 2025
James Fazzino
21 February 2019
Nino Ficca
1 September 2023
David Lamont
1 October 2024
Samantha (Sam) Lewis
1 October 2024
Rhoda Phillippo
1 June 2020
Debra (Debbie) Goodin
1 September 2015. Retired 24 February 2025
Peter Wasow
19 March 2018. Retired 24 October 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:
•
Group Executive Strategy and Corporate Development: Ross Gersbach ceased as Group Executive Strategy and
Corporate Development effective 11 October 2024, and retired from APA on 31 October 2024. Beth Griggs was
appointed as Group Executive Strategy and Corporate Development effective 11 October 2024.
•
Group Executive Infrastructure Delivery: Kevin Lester ceased as Group Executive Infrastructure Delivery on 16 June
2025, and retired from APA on 30 June 2025. Robert (Rob) Evans was appointed as Group Executive Infrastructure
Delivery effective 16 June 2025.
•
Group Executive Electricity Transmission: Following APA's decision in June not to participate in the current tender
processes for major, stand-alone electricity transmission projects on the east coast, Vin Vassallo will leave the
business in October 2025 and contribute to the business in an advisory capacity until that time.
•
Group Executive Legal and Governance: Amanda Cheney will leave APA on 31 August 2025. Amanda's portfolio will be
allocated across Garrick Rollason and Beth Griggs as part of a broader structural reorganisation.
Subsequent events
Final distribution declaration
On 20 August 2025, the Directors declared a final distribution of 30.0 cents per security ($391 million) for APA Group, an
increase of 1.7%, or 0.5 cent per security over the previous corresponding period (30 June 2024: 29.5 cents). This comprises
a distribution of 22.61 cents per security from APA Infrastructure Trust and a distribution of 7.39 cents per security from
APA Investment Trust.
The APA Infrastructure Trust distribution represents 6.47 cents per security fully franked profit distribution and 16.14 cents
per security capital distribution. The APA Investment Trust distribution represents a 1.10 cent per security unfranked profit
distribution and 6.29 cents capital distribution. The distribution is expected to be paid on 10 September 2025.
Other than noted above and as disclosed elsewhere in this report, in the interval between 30 June 2025 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.
FY25 ANNUAL REPORT APA GROUP 207
Review and results of operations
The Consolidated Entity reported net profit after tax of $30,200,000 for the year ended 30 June 2025 and total revenue of
$31,749,000.
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 to 62 of the Annual Report and forms part of this Directors’ Report.
Distributions
Final FY24 distribution paid
Interim FY25 distribution paid
18 September 2024
17 March 2025
Total
Total
Cents per
distribution
Cents per
distribution
security
$'000
security
$'000
APA Investment Trust profit distribution
1.02
13,138
1.22
15,808
APA Investment Trust capital distribution
–
–
0.62
8,088
Total
1.02
13,138
1.84
23,896
Final FY25 distribution
10 September 2025
Total
Cents per
distribution
security
$'000
APA Investment Trust profit distribution
1.10
14,392
APA Investment Trust capital distribution
6.29
82,022
Total
7.39
96,414
Directors
Information on Directors and Company Secretaries
For information relating to the qualifications and experience of Directors and Company Secretaries refer to pages 66 to
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
Orora Limited
Since April 2022
Adam Watson
—
—
Varya Davidson
—
—
James Fazzino
Tassal Group Limited
May 2020 to November 2022
Qube Holdings Limited
Since February 2024
Nino Ficca
—
—
David Lamont
Telstra Group Limited
Since December 2024
Samantha (Sam) Lewis
CSL Limited
Since January 2024
Nine Entertainment Co. Holdings
Limited
March 2017 to May 2025
Orora Limited
March 2014 to March 2024
Aurizon Holdings Limited
February 2015 to October 2023
Rhoda Phillippo
Dexus Funds Management Limited
Since February 2023
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
DIRECTORS' REPORT
208 APA GROUP FY25 ANNUAL REPORT
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, nine Board meetings, four Risk Management Committee meetings, four Audit and Finance Committee
meetings, five People and Remuneration Committee meetings, six Safety and Sustainability Committee meetings, and
two Nomination Committee meetings were held.
People and
Audit and
Risk
Safety and
Board
Remuneration
Finance
Management
Sustainability
Nomination
Committee
Committee
Committee
Committee
Committee
Directors
A
B
A
B
A
B
A
B
A
B
A
B
Michael Fraser
9
9
—
—
—
—
—
—
6
6
2
2
Adam Watson
9
9
—
—
—
—
—
—
—
—
—
—
Varya Davidson
1
4
4
1
1
—
—
—
—
2
2
—
—
James Fazzino
9
9
—
—
4
4
4
4
6
6
2
2
Nino Ficca
9
9
5
5
—
—
3
3
6
6
2
2
David Lamont
2
8
8
3
3
3
3
—
—
5
5
1
1
Samantha (Sam) Lewis
3
8
8
—
—
3
3
3
3
—
—
1
1
Rhoda Phillippo
9
9
5
5
4
4
4
4
—
—
2
1
Debra (Debbie) Goodin
4
5
5
—
—
3
3
3
3
—
—
2
2
Peter Wasow
5
2
2
3
3
1
1
1
1
—
—
1
1
1
Varya Davidson appointed as a Director effective 1 March 2025.
2
David Lamont appointed as a Director effective 1 October 2024.
3
Samantha (Sam) Lewis appointed as a Director effective 1 October 2024.
4 Debra (Debbie) Goodin retired as a Director effective 24 February 2025.
5
Peter Wasow retired as a Director effective 24 October 2024.
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 2025 is 466,330.
Directors’ relevant interests in APA securities
Fully paid securities as
Fully paid securities as
Directors
1 July 2024
Securities acquired
Securities disposed
30 June 2025
Michael Fraser
106,489
—
—
106,489
Adam Watson
97,400
56,133
—
153,533
Varya Davidson
1
25,116
—
—
25,116
James Fazzino
34,298
13,114
—
47,412
Nino Ficca
12,500
21,788
—
34,288
David Lamont
2
40,407
14,593
—
55,000
Samantha (Sam) Lewis
3
7,600
15,000
—
22,600
Rhoda Phillippo
20,325
1,567
—
21,892
Debra (Debbie) Goodin
4
27,726
—
—
27,726
Peter Wasow
5
29,547
—
—
29,547
1
Varya Davidson appointed as a Director effective 1 March 2025.
2
David Lamont appointed as a Director effective 1 October 2024.
3
Samantha (Sam) Lewis appointed as a Director effective 1 October 2024.
4 Debra (Debbie) Goodin retired as a Director effective 24 February 2025. Balance as at date of ceasing to be a Director.
5
Peter Wasow retired as a Director effective 24 October 2024. Balance as at date of ceasing to be a Director.
As at 30 June 2025, Adam Watson held 779,897 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.
FY25 ANNUAL REPORT APA GROUP 209
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 Infrastructure Trust and APA Investment Trust,
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 16 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 11 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 at page 226.
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
Chairman
Sydney, 20 August 2025
Adam Watson
Chief Executive Officer and Managing Director
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
DIRECTORS' REPORT
210 APA GROUP FY25 ANNUAL REPORT
Consolidated Statement of Profit or Loss and Other Comprehensive Income
2025
2024
Note
$'000
$'000
Revenue
4
31,749
25,844
Expenses
4
(1,549)
(5,376)
Profit before tax
30,200
20,468
Income tax expense
5
–
–
Profit for the year
30,200
20,468
Other comprehensive income
–
–
Total comprehensive income for the year
30,200
20,468
Profit attributable to:
Unitholders of the parent
30,200
20,468
30,200
20,468
Total comprehensive income attributable to:
Unitholders of the parent
30,200
20,468
Earnings per unit
2025
2024
Basic and diluted (cents per unit)
6
2.3
1.6
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
FY25 ANNUAL REPORT APA GROUP 211
Consolidated Statement of Financial Position
2025
2024
Note
$'000
$'000
Current assets
Receivables
8
67
112
Current assets
67
112
Non-current assets
Other financial assets
9
747,924
747,154
Non-current assets
747,924
747,154
Total assets
747,991
747,266
Total liabilities
–
–
Net assets
747,991
747,266
Equity
Issued capital
11
733,599
734,128
Retained earnings
14,392
13,138
Total equity
747,991
747,266
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 2025
212 APA GROUP FY25 ANNUAL REPORT
Consolidated Statement of Changes in Equity
Issued capital
Retained
earnings
Total
Note
$'000
$'000
$'000
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 (net of transaction
costs)
11
200,475
–
200,475
Issue of securities under retail security purchase plan (net of transaction
costs)
11
59,400
–
59,400
Issue of securities under distribution reinvestment plan
11
670
–
670
Security issue costs
(3,150)
–
(3,150)
Balance at 30 June 2024
734,128
13,138
747,266
Balance at 1 July 2024
734,128
13,138
747,266
Profit for the year
–
30,200
30,200
Total comprehensive income for the year
–
30,200
30,200
Distributions to unitholders
7
(8,088)
(28,946)
(37,034)
Issue of securities under distribution reinvestment plan
11
7,559
–
7,559
Balance at 30 June 2025
733,599
14,392
747,991
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
FY25 ANNUAL REPORT APA GROUP 213
Consolidated Statement of Cash Flows
2025
2024
Note
$'000
$'000
Cash flows from operating activities
Trust distribution - related party
21,914
19,374
Interest received - related party
9,835
6,470
Payments to suppliers
(1,504)
(1,275)
Net cash provided by operating activities
30,245
24,569
Cash flows from investing activities
Payments to related party
(770)
(184,190)
Net cash used in investing activities
(770)
(184,190)
Cash flows from financing activities
Proceeds from issue of units (net of transaction costs)
–
259,875
Payment of security issue costs
–
(3,150)
Distributions to unitholders (net of DRP issuance and transaction costs)
7
(29,475)
(97,104)
Net cash (used in)/provided by financing activities
(29,475)
159,621
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 2025
214 APA GROUP FY25 ANNUAL REPORT
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
215
1.
About this report
215
2.
General information
216
Financial Performance
217
3.
Segment information
217
4.
Profit from operations
217
5.
Income tax
217
6.
Earnings per unit
218
7.
Distributions
218
Operating Assets and Liabilities
219
8.
Receivables
219
Capital Management
219
9.
Other financial assets
219
10.
Financial risk management
220
11.
Issued capital
221
Group Structure
222
12.
Subsidiaries
222
Other items
222
13.
Commitments and contingencies
222
14.
Director and Executive Key Management
Personnel remuneration
222
15.
Remuneration of external auditor
223
16.
Related party transactions
223
17.
Parent entity information
224
18.
Adoption of new and revised Accounting
Standards
224
19.
Events occurring after reporting date
224
FY25 ANNUAL REPORT APA GROUP 215
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 2025 was authorised for issue in accordance with a resolution of the
directors on 20 August 2025.
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 2025
216 APA GROUP FY25 ANNUAL REPORT
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:
2025
2024
$'000
$'000
Revenue
Distributions
Trust distribution - related party
21,914
19,374
21,914
19,374
Finance income
Interest - related party
9,835
6,470
9,835
6,470
Total revenue
31,749
25,844
Expenses
Loss on modification of finance lease receivable ¹
–
(4,239)
Management and administration fees
(1,534)
(1,119)
Audit fees
(15)
(18)
Total expenses
(1,549)
(5,376)
1
In the prior year, lease payment terms under the existing finance lease were modified effective from 1 July 2023 resulting in a modification loss for the prior
period.
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; and
•
Distribution revenue, which is recognised when the right to receive a distribution has been established.
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.
FY25 ANNUAL REPORT APA GROUP 217
Notes to the consolidated financial statements (continued)
Financial Performance (continued)
6. Earnings per unit
2025
2024
cents
cents
Basic and diluted earnings per unit
2.3
1.6
The earnings and weighted average number of units used in the calculation of basic and diluted earnings per unit are
as follows:
2025
2024
$'000
$'000
Net profit attributable to unitholders for calculating basic and diluted earnings per unit
30,200
20,468
2025
2024
No. of units
No. of units
000
000
Weighted average number of ordinary securities used in the calculation of:
Basic earnings per unit
1,295,153
1,264,628
Diluted earnings per unit ¹
1,298,823
1,267,957
1
Includes 5 million (2024: 4 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
2025
2025
2024
2024
cents per
Total
cents per
Total
unit
$'000
unit
$'000
Recognised amounts
Final FY24 distribution paid on 18 September 2024
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
Interim FY25 distribution paid on 17 March 2025
(31 December 2023: Interim FY24 distribution paid on 14 March 2024)
Profit distribution ¹
1.22
15,808
0.57
7,330
Capital distribution
0.62
8,088
0.30
3,789
1.84
23,896
0.87
11,119
Total distributions recognised
Profit distribution ¹
2.24
28,946
1.57
19,151
Capital distribution (note 11)
0.62
8,088
6.64
78,623
2.86
37,034
8.21
97,774
Unrecognised amounts
Final FY25 distribution payable on 10 September 2025 ²
(30 June 2024: Final FY24 distribution paid on 18 September 2024)
Profit distribution ¹
1.10
14,392
1.02
13,138
Capital distribution
6.29
82,022
–
—
7.39
96,414
1.02
13,138
1
Profit distributions unfranked (30 June 2023 and 31 December 2023: unfranked; 30 June 2024 and 31 December 2024: unfranked).
2
Record date 30 June 2025.
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 2025
218 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Operating Assets and Liabilities
8. Receivables
2025
2024
$'000
$'000
GST receivable
67
112
Current
67
112
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.
None of the above receivables are past due.
Capital Management
9. Other financial assets
2025
2024
$'000
$'000
Non-current
Loan to related party
640,545
639,775
Investment in related party
107,379
107,379
747,924
747,154
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 are subsequently measured at amortised cost if,
•
Held to collect contractual cash flows; and
•
Contractual cash flows are solely payments of principal and interest.
Debt instruments are subsequently measured at fair value through other comprehensive income (FVTOCI) if,
•
Held to collect contractual cash flows and sell; and
•
Contractual cash flows are solely payments of principal and interest.
By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).
Derivatives not designated for hedge accounting, are classified as 'financial assets/liabilities' and measured at FVTPL.
Loans and receivables
Loan and other receivables are stated at their amortised cost less impairment.
Impairment of financial assets
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.
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.
FY25 ANNUAL REPORT APA GROUP 219
Notes to the consolidated financial statements (continued)
Capital Management (continued)
10. 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 Board 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 counterparty credit
risk. The Consolidated Entity's Board
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 10 (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 10 (b)
credit risk.
Liquidity
Payables
Refer to 10 (c) liquidity risk
(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 $2,049,000 or decrease by $2,031,000
(2024: increase by $1,705,000 or decrease by $1,694,000 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. 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 Board. These limits are regularly reported to the Audit and Finance
Committee.
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 (2024: nil,
due in less than 1 year).
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
220 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Capital Management (continued)
11. Issued capital
2025
2024
$'000
$'000
APA Investment Trust Units
1,304,487,508 securities, fully paid (2024: 1,283,352,928 units, fully paid) ¹
733,599
734,128
2025
2024
No. of units
2025
No. of units
2024
000
$'000
000
$'000
Movements
Balance at beginning of financial year
1,283,353
734,128
1,179,894
555,356
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 ⁵ ⁶
21,135
7,559
395
670
Securities issue costs
–
–
–
(3,150)
Capital distributions paid (note 7)
–
(8,088)
–
(78,623)
1,304,488
733,599
1,283,353
734,128
1
Fully paid units carry one vote per unit and carry the right to distributions.
2
In the prior year, 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
In the prior year, 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 On 17 March 2025, the distribution declared for December 2024 resulted in $64 million being raised by the distribution reinvestment plan through the issue of
9.5 million stapled securities at a price of $6.76, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
5
On 18 September 2024, the distribution declared for June 2024 resulted in $91 million being raised by the distribution reinvestment plan through the issue of
11.6 million stapled securities at a price of $7.82, which was allocated to the APA Infrastructure Trust and APA Investment Trust on a net asset basis.
6 In the prior year, on 14 March 2024, the distribution declared for December 2023 resulted in $3 million being raised by the distribution reinvestment plan
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.
FY25 ANNUAL REPORT APA GROUP 221
Notes to the consolidated financial statements (continued)
Group Structure
12. Subsidiaries
Subsidiaries are entities controlled by APA Investment Trust. The country of registration or incorporation is also
considered the principal place of business of each subsidiary.
Ownership interest
2025
2024
Name of entity
Country of registration
%
%
Parent entity
APA Investment Trust
Subsidiary
GasNet Australia Investments Trust
Australia
100
100
Other items
13. Commitments and contingencies
The Consolidated Entity had no material contingent assets, liabilities and commitments as at 30 June 2025 and 30 June
2024.
14. Director and Executive Key Management Personnel remuneration
Remuneration of Directors
The aggregate remuneration of Directors of the Consolidated Entity is set out below:
2025
2024
$
$
Short-term employment benefits
1,803,043
1,742,212
Post-employment benefits
167,964
165,545
Total remuneration: Non-Executive Directors¹
1,971,007
1,907,757
Short-term employment benefits
2,923,700
2,475,001
Post-employment benefits
29,932
27,399
Equity settled security-based payments
1,039,049
900,215
Total remuneration: Executive Director
3,992,681
3,402,615
Total remuneration: Directors
5,963,688
5,310,372
Remuneration of Executive Key Management Personnel
The aggregate remuneration of Executive Key Management Personnel of the Consolidated Entity is set out below:
2025
2024
$
$
Short-term employment benefits
7,178,134
5,966,026
Post-employment benefits
119,728
102,746
Cash settled security-based payments
–
92,405
Equity settled security-based payments
2,765,224
1,802,626
Total remuneration: Executive Key Management Personnel²,³
10,063,086
7,963,802
1
Non-executive Directors remuneration includes remuneration for Varya Davison (appointed 1 March 2025), Samantha (Sam) Lewis (appointed 1 October
2024) and David Lamont (appointed 1 October 2024). In addition, Non-executive Director remuneration includes the remuneration of Debra (Debbie) Goodin
(retired 24 February 2025) and Peter Wasow (retired 24 October 2024) until their respective dates of retirement.
2
Executive Key Management Personnel includes Adam Watson (Chief Executive Officer), Garrick Rollason (Chief Financial Officer), Petrea Bradford (Group
Executive Operations) and Darren Rogers (Group Executive Energy Solutions).
3
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.
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
222 APA GROUP FY25 ANNUAL REPORT
Notes to the consolidated financial statements (continued)
Other items (continued)
15. Remuneration of external auditor
Amounts received or due and receivable by Deloitte Touche Tohmatsu for:
Audit or review of the financial reports
2025
2024
$
$
Group
7,276
6,930
Total audit or review of the financial reports
7,276
6,930
Statutory assurance services required by legislation to be provided by the auditor
ASIC compliance plan audit
7,387
7,035
Total statutory assurance services required by legislation to be provided by the auditor
7,387
7,035
Total remuneration of external auditor
14,663
13,965
16. Related party transactions
(a) Equity interest in related parties
Details of the percentage of ordinary securities held in subsidiaries are disclosed in note 12.
(b) Responsible Entity – APA Group Limited
The Responsible Entity is wholly owned by APA Infrastructure Limited (2024: 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 12 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:
•
non-current receivables totalling $640,545,000 (2024: $639,775,000) are owing from a subsidiary of APA Infrastructure
Trust for amounts due under inter-entity loans.
APA Group Limited
Management fees of $1,534,000 (2024: $1,119,000) 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 (2024: $nil).
FY25 ANNUAL REPORT APA GROUP 223
Notes to the consolidated financial statements (continued)
Other items (continued)
17. 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.
2025
2024
$'000
$'000
Financial position
Assets
Current assets
67
112
Non-current assets
747,924
747,154
Total assets
747,991
747,266
Liabilities
Non-Current liabilities
–
–
Total liabilities
–
–
Net assets
747,991
747,266
Equity
Issued capital
733,599
734,128
Retained earnings
14,392
13,138
Total equity
747,991
747,266
Financial performance
Profit for the year
30,200
20,468
Total comprehensive income
30,200
20,468
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.
18. 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 Group'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 Group's accounting policies or any of the amounts recognised in the
financial statements.
In June 2024, the AASB issued a new presentation and disclosure standard, AASB 18 Presentation and Disclosure in
Financial Statements (AASB 18) which sets out requirements for the presentation and disclosure of information in general
purpose financial statements. AASB 18 will be applicable for the Group from 1 July 2027. The adoption of this standard is
not expected to change the recognition and measurement of items in the Group's financial statements however it is
expected to affect the presentation and disclosures in the Group's financial statements.
19. Events occurring after reporting date
Final distribution declaration
On 20 August 2025, the Directors declared a final distribution for the 2025 financial year of 7.39 cents per unit ($96
million). The distribution represents a 1.10 cents per security unfranked profit distribution and a 6.29 cents per security
capital distribution. The distribution is expected to be paid on 10 September 2025.
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 2025
224 APA GROUP FY25 ANNUAL REPORT
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, 20 August 2025
FY25 ANNUAL REPORT APA GROUP 225
Auditor's Independence Declaration
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
226 APA GROUP FY25 ANNUAL REPORT
Independent Auditor's Report
FY25 ANNUAL REPORT APA GROUP 227
Independent Auditor's Report (continued)
APA INVESTMENT TRUST AND ITS CONTROLLED ENTITIES
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025
228 APA GROUP FY25 ANNUAL REPORT
Independent Auditor's Report (continued)
FY25 ANNUAL REPORT APA GROUP 229
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 2025).
Twenty largest shareholders
No. of
securities
%
HSBC Custody Nominees (Australia) Limited
396,795,840
30.42
J P Morgan Nominees Australia Pty Limited
174,887,634
13.41
Citicorp Nominees Pty Limited
117,308,397
8.99
Custodial Services Limited
25,552,076
1.96
BNP Paribas Noms Pty Ltd
18,986,470
1.46
Argo Investments Limited
14,308,525
1.10
BNP Paribas Nominees Pty Ltd
13,819,009
1.06
BKI Investment Company Limited
9,716,652
0.74
HSBC Custody Nominees (Australia) Limited
9,562,435
0.73
Netwealth Investments Limited
8,085,655
0.62
BNP Paribas Nominees Pty Ltd
8,013,000
0.61
National Nominees Limited
7,955,348
0.61
HSBC Custody Nominees (Australia) Limited - A/c 2
4,347,461
0.33
Mutual Trust Pty Ltd
3,663,347
0.28
BNP Paribas Nominees Pty Ltd
3,096,542
0.24
Citicorp Nominees Pty Limited
3,069,853
0.24
3rd Wave Investors Pty Ltd
3,000,000
0.23
HSBC Custody Nominees (Australia) Limited
2,739,447
0.21
Netwealth Investments Limited
2,681,340
0.21
Pacific Custodians Pty Limited
2,461,693
0.19
Total
830,050,724
63.63
Distribution of holders
Ranges
No. of holders
%
No. of
securities
%
100,001 and Over
158
0.16
873,498,601
66.96
10,001 to 100,000
10,271
10.33
210,950,846
16.17
5,001 to 10,000
13,875
13.95
99,510,000
7.63
1,001 to 5,000
40,340
40.56
106,423,157
8.16
1 to 1,000
34,809
35.00
14,104,904
1.08
Total
99,453
100.00
1,304,487,508
100.00
Interests of substantial securityholders
Date of notice
Number of voting
securities
highlighted in notice
Voting power
highlighted in notice
Franklin Resources Inc
18 March 2025
65,765,607
5.05 %
State Street Corporation
13 March 2025
124,997,236
9.65 %
Vanguard Group
15 July 2024
77,018,640
6.00 %
BlackRock
14 July 2021
82,844,967
7.02 %
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.
ADDITIONAL INFORMATION (CONTINUED)
230 APA GROUP FY25 ANNUAL REPORT
Five-year financial summary
Financial Performance (Statutory)
FY25
FY24
FY23
FY22
FY21
Revenue
$m
3,204
3,064
2,913
2,732
2,605
Revenue excluding pass-through ¹
$m
2,713
2,591
2,401
2,236
2,145
Underlying EBITDA ²
$m
2,015
1,893
1,725
1,692
1,629
Total Reported EBITDA ³
$m
1,894
1,736
1,686
1,630
1,639
Depreciation and amortisation expense
$m
(990)
(919)
(750)
(735)
(674)
Reported EBIT ³
$m
904
817
936
895
965
Net Interest expense ³
$m
(657)
(579)
(459)
(483)
(505)
Significant items – before income tax
$m
–
835
–
28
(397)
Income tax expense
$m
(118)
(75)
(190)
(180)
(62)
Profit after tax including significant items
$m
129
998
287
260
1
Significant items – after income tax
$m
–
879
–
20
(278)
Profit after tax excluding significant items
$m
129
119
287
240
279
Financial Position
Total assets
$m
19,937
19,563
15,866
15,836
14,742
Total drawn debt
$m
13,350
12,893
11,240
11,146
9,666
Total equity
$m
2,668
3,248
1,910
2,629
2,951
Operating Cash Flow
Operating cash flow⁴
$m
1,284
1,156
1,206
1,197
1,051
Free cash flow⁵
$m
1,083
1,073
1,070
1,081
902
Key Financial Ratios
Earnings per security including significant items
cents
9.9
78.9
24.3
22.1
0.1
Earnings per security excluding significant items
cents
9.9
9.4
24.3
20.4
23.7
Free cash flow per security
cents
83.0
83.6
90.7
91.6
76.4
Distribution per security
cents
57.0
56.0
55.0
53.0
51.0
Funds From Operations to Net Debt
%
10.4
10.1
11.0
11.4
10.8
Funds From Operations to Interest
times
2.9
3.2
3.4
3.5
3.0
Weighted average number of securities
m
1,295
1,265
1,180
1,180
1,180
EBITDA by Segment (excluding Significant Items)
Underlying EBITDA
Energy Infrastructure
East Coast Gas Transmission and Storage
$m
711
669
645
646
628
West Coast Gas Transmission and Storage
$m
365
347
305
289
271
Wallumbilla Gladstone Pipeline
$m
683
657
620
578
550
Power Generation
$m
298
249
199
194
175
Electricity Transmission
$m
37
37
24
–
–
Total Energy Infrastructure
$m
2,094
1,959
1,793
1,707
1,624
Asset Management
$m
60
69
56
73
80
Energy Investments
$m
26
26
23
28
31
Corporate costs
$m
(165)
(161)
(147)
(116)
(105)
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 Operating cash flow = net cash from operations after interest and tax payments.
5
Free cash flow is defined as Operating Cash Flow adjusted for strategically significant transformation projects, acquisition, integration and disposal-related
costs, and capital returns from Joint Ventures, less stay-in-business capital expenditure. Stay-in-business capital expenditure comprises operational asset
lifecycle replacement costs and technology lifecycle costs.
FY25 ANNUAL REPORT APA GROUP 231
Investor information
Calendar of events
Final distribution FY25 record date
30 June 2025
Final distribution FY25 payment date
10 September 2025
Annual meeting
22 October 2025
Interim distribution FY26 record date
31 December 2025
Interim results announcement
19 February 2026
1
Interim distribution FY26 payment date
12 March 2026
1
1
Subject to change.
Annual meeting details
Date:
Wednesday 22 October 2025
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
MUFG Corporate Markets
Liberty Place, Level 41, 161 Castlereagh Street
Sydney NSW 2000
Locked Bag A14
Sydney South NSW 1235
Telephone:
+61 1800 992 312
Facsimile:
+61 2 9287 0303
Email:
apagroup@cm.mpms.mufg.com
Website:
au.investorcentre.mpms.mufg.com
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) 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.
ADDITIONAL INFORMATION (CONTINUED)
232 APA GROUP FY25 ANNUAL REPORT
Glossary
AASB
Australian Accounting Standards Board
Abatement (climate
related)
Measures that companies take to prevent, reduce or eliminate sources of GHG emissions within their
value chain.
Absolute emissions
For a particular reporting period, total aggregate greenhouse gas emissions specific to a particular
emission Scope or across different Scopes. Is not relative or comparative in contrast with Emissions
intensity (see below).
Australian Carbon Credit
Unit
(ACCU)
An ACCU is a unit issued to a person by the Clean Energy Regulator (Regulator) by making an entry for the
unit in an account kept by the person in the electronic Australian National Registry of Emissions Units
(Registry). Each ACCU issued represents one tonne of carbon dioxide equivalent (t CO2-e) stored or
avoided by a project.
AEMC
Australian Energy Market Commission
AEMO
Australian Energy Market Operator
AER
Australian Energy Regulator
AESCF
Australian Energy Sector Cyber Security Framework
AGN
Australian Gas Network
APA Infra
APA Infrastructure Trust
APA Invest
APA Investment Trust
APA
APA Group
APAIL
APA Infrastructure Limited
Assets
An item of value owned or operated by APA, e.g. transmission, generation or other.
ASX
Australian Stock Exchange
AUD
Australian dollar
Avoid
The avoidance of emissions through decisions APA makes when (1) investing in a new entity or asset or (2)
designing new or when making major modifications to assets.
Base year
A historic datum (a specific year or an average over multiple years) against which a company’s
emissions are tracked over time.
Baseline
A hypothetical scenario for what GHG emissions, removals or storage would have been in the absence of
the GHG project or project activity.
Base year emissions
recalculation (re-
baselining)
Recalculation of 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, i.e. comparisons of like with like over time.
BCA
Business Council of Australia
BESS
Battery Energy Storage System
Capex
Capital expenses. Money spent to buy or improve fixed assets.
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.
Coupled Model
Intercomparison Project
(CMIP)
CMIP is an international scientific collaboration under the United Nations World Climate Research
Program. CMIP6 data are the most current global climate model data available and provide the
foundation for the Intergovernmental Panel on Climate Change’s Sixth Assessment Reports.
CCS
Carbon Capture and Storage
CEDA
Committee for Economic Development of Australia
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CIRP
Cyber Incident Response Plan
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.
Collective bargaining
agreements
Obligations (often legally binding) that the organisation has undertaken. They represent a form of joint
decision-making concerning the organisation’s operations.
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.
Term
Definition
FY25 ANNUAL REPORT APA GROUP 233
CES
Customer Experience Score
CTP
Climate Transition Plan
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
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.
EII
Energy Infrastructure Investments
Electrification
Electrification is the process of converting an energy-consuming device, system or sector from non-
electric sources of energy to electricity, such as in homes, buildings, industry, agriculture and
transportation.
Emissions (GHG emissions)
Known as greenhouse gas (GHG) emissions. These are the aggregate anthropogenic carbon dioxide
equivalent emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). All are expressed in carbon dioxide
equivalent (CO
2-e).
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.
End-user emissions
End-user emissions are emissions (upstream and downstream) that result from the end-use
consumption (combustion) of natural gas that APA transports through its wholly- or partially-owned
pipelines but does not take ownership of and therefore does not sell to the end-user.
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
ERP
Enterprise Resource Planning
ESG
Environmental, Social, Governance
Executive Leadership Team
(ELT)
Comprises 'Key Management Personnel/ Head of Business' and 'Key Management Personnel' (in addition
to L5 Senior Leaders below CEO, where CEO is L1) as reported to Workplace Gender Equality Act (WGEA),
excluding the 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 of a person.
FID
Final Investment Decision
Financial Stability Board
(FSB)
International body that monitors and makes recommendations about the global
financial system.
Flaring
The controlled combustion of gas that takes place during production and processing of
natural gas.
Free Cash Flow (FCF)
Free Cash Flow is Operating Cash Flow adjusted for strategically significant transformation projects, less
stay-in-business (SIB) capex. SIB capex includes operational assets lifecycle replacement costs and
technology lifecycle costs.
Fugitives (Fugitive
emissions)
The unintentional release of gas in connection with, or because of, the extraction, processing, storage or
delivery of natural gas.
Future energy
New energy solutions, such as hydrogen, biomethane and carbon dioxide transport to support carbon
capture, utlisation and storage.
Future fuels
A wide range of carbon-neutral fuels produced using renewable or clean energy sources such as biogas
and hydrogen.
FY (financial year)
Financial Year (period between 1 July – 30 June)
Gas transmission and
storage
Pipelines and other infrastructure to support the transport and storage of gas.
Global warming potential
(GWP)
Global warming potentials (GWPs) are values that allow direct comparison of the impact of different
greenhouse gases in the atmosphere by comparing how much energy one tonne of a gas will absorb
compared to one tonne of carbon dioxide.
Term
Definition
ADDITIONAL INFORMATION (CONTINUED)
234 APA GROUP FY25 ANNUAL REPORT
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).
Green hydrogen
Hydrogen produced using renewable energy.
GJ
Gigajoule
Goal (climate-related)
An intention 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.
Gross emissions
Total GHG emissions for a reporting period with no adjustment due to the application of offsets
surrendered.
GRI
Global Reporting Initiative https://www.globalreporting.org/
GSOO
Gas Statement of Opportunities (GSOO)
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 (IFRS)
Internal Carbon Abatement
Price
The Internal Carbon Abatement Price sets the threshold price for APA’s preparedness to pay
for abatement and alternative design solutions to avoid or reduce emissions.
Large-scale generation
certificate (LGC)
A large-scale generation certificate (LGC) represents 1 MWh of electricity generated from an eligible
renewable electricity source.
Lost Time Injury (LTI)
Lost Time Injury is 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
Marginal abatement cost
Net Present Value (NPV) divided by emissions reduced or avoided.
Methane Guiding Principles
(MGPs)
The Methane Guiding Principles (MGPs) is a voluntary, international multi-stakeholder partnership
between industry and non-industry organisations. It has a focus on priority areas for action along the
natural gas supply chain, from production to the final consumer.
Mitigation
Refers to efforts to reduce or prevent emission of greenhouse gases. Mitigation can mean
using new technologies and renewable energies, making older equipment more energy efficient, or
changing management practices or consumer behaviour.
MOU
Memorandum of Understanding
Net emissions
Gross GHG emissions for a reporting period reduced/increased by the number of carbon offsets
surrendered/issued.
Net zero
Achieving an overall balance between greenhouse gas emissions produced and greenhouse gas
emissions taken out of the atmosphere.
NGER, NGER Act
National Greenhouse and Energy Reporting Act 2007, and associated legislation/regulations.
NGERS
National Greenhouse and Energy Reporting Scheme
Off grid
A facility that is not connected to the National Electricity Market (NEM) or the South West Interconnected
System (SWIS).
Operational control
A company has operational control over an operation if the company or one of its subsidiaries has the
full authority to introduce and implement its operating policies at the operation. This aligns with the
definition of operational control provided in both the GHG Protocol and section 11 of the NGER Act.
Operational emissions
Scope 1 and Scope 2 emissions for assets (facilities) under APA’s operational control.
Operational methane
emissions
Scope 1 methane emissions for assets under APA’s operational control.
Organisational boundary
Relates to assets under APA’s operational control.
Paris Agreement
An international agreement adopted under the United Nations Framework Convention on Climate
Change in 2015. Under the Paris Agreement, the global temperature goal is to keep warming to ‘well
below’ 2 degrees Celsius compared with pre-industrial levels, and to ‘pursue efforts to limit the
temperature rise to 1.5 degrees Celsius’.
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.
Permanence
Period for which carbon is stored.
PGP
Parmelia Gas Pipeline
Physical climate risk
Physical risks emanating from climate change can be event-driven (acute), such as increased severity of
extreme weather events (e.g. cyclones, droughts, floods, and fires). They can also relate to longer-term
shifts (chronic) in precipitation and temperature, and increased variability in weather patterns (e.g. sea
level rise).
Term
Definition
FY25 ANNUAL REPORT APA GROUP 235
PSHIFR
Potential Serious Harm Incident Frequency Rate
RAP
Reconciliation Action Plan
RAPWG
RAP Working Group
Re-baselining
See Base year emissions recalculation (re-baselining).
Reduce
Reducing greenhouse gas emissions through the way we operate our assets as well as modifications to
plant and infrastructure.
Remote-grid
A power generation facility that is not connected to the National Electricity Market (NEM), the South West
Interconnected System (SWIS), the North West Interconnected System (NWIS), the Darwin to Katherine
Interconnected System (DKIS) or the Mount Isa-Cloncurry supply network (Mount Isa Network).
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.
REZ
Renewable Energy Zones
Renewable gas
Carbon-neutral gas substitutes that do not generate additional greenhouse gas emissions when burnt.
Representative
Concentration
Pathways (RCPs)
Four independent pathways comprising sets of projections of radiative forcing that serve as inputs to
climate modelling, pattern scaling and atmospheric chemistry modelling. These are based on the forcing
of greenhouse gases and other forcing agents.
Safeguard Mechanism
Requires Australia’s highest greenhouse gas-emitting facilities to keep their emissions below an
emissions limit (baseline). If a Safeguard facility exceeds their baseline, they must manage their excess
emissions. Applies to facilities that emit more than 100,000 t CO2-e of covered emissions in a financial
year (the Safeguard threshold). The Safeguard Mechanism is administered through the NGERS.
Scenario
A plausible description of how the future may develop based on a coherent and internally consistent set
of assumptions about key driving forces (e.g. rate of technological change, prices) and relationships. Note
that scenarios are neither predictions nor forecasts but are useful for providing a view of the implications
of developments and actions.
Scope 1 emissions
Direct emissions that occur from sources owned or controlled by a company, e.g. combustion of natural
gas within a compressor.
Scope 2 emissions
Indirect emissions not directly generated by the reporting organisation but used due to its operations,
such as consumption of purchased electricity/fuel or electricity line loss.
Scope 3 emissions
All indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company,
including both upstream and downstream emissions.
SDGs
Sustainable Development Goals (SDGs) https://sdgs.org.au/
Shared Socioeconomic
Pathways (SSPs)
Used alongside the Representative Concentration Pathways (RCPs) to analyse the feedback between
climate change and socioeconomic factors, such as world population growth, economic development,
and technological progress.
SIB
Stay in Business
SPP
Sturt Plateau Pipeline
TCFD
Taskforce on Climate-related Financial Disclosures
TNFD
Taskforce on Nature-related Financial Disclosures
t CO2-e
Tonne (t) CO2-e (carbon dioxide equivalent)
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.
Transition risk
Risks related to the transition to a lower carbon economy. They can be grouped into four categories:
policy and legal risk; technological risk; market risk (e.g. consumer preferences); and reputational risk.
Value chain emissions
Emissions from the upstream and downstream activities associated with the operations
of the reporting company, including end-user emissions.
VRE
Variable Renewable Energy
WHS
Work Health and Safety
WORM
Western Outer Ring Main (WORM)
Zero direct emissions
vehicle (ZDEV)
Zero direct emission vehicles are vehicles that do not use petrol or diesel, have no tailpipe, and therefore
do not directly emit greenhouse gas (GHG) emissions. There are two types of ZDEVs – battery electric
vehicles (BEVs) and Hydrogen Fuel Cell Electric Vehicles (HCEVs).
Term
Definition
ADDITIONAL INFORMATION (CONTINUED)
236 APA GROUP FY25 ANNUAL REPORT
HSEH Assurance
FY25 ANNUAL REPORT APA GROUP 237
HSEH Assurance (continued)
ADDITIONAL INFORMATION (CONTINUED)
238 APA GROUP FY25 ANNUAL REPORT
HSEH Assurance
FY25 ANNUAL REPORT APA GROUP 239
This page has been intentionally left blank
240 APA GROUP FY25 ANNUAL REPORT
Image: Port Hedland Solar Farm (under construction), WA
36 RAP
commitments
delivered
72% employee
engagement
score
7.1/10 Customer
Experience
Score
OP
RATI
NG
AND
FINA
NCIA
L
REVI
W
AP
A
INFR
STRU
CTU
E
TRUS
T
FINA
NCIA
L
REPO
RT
ADD
ITION
AL
INFO
RMA
ION
OV
ER
VIE
W
GO
VE
RN
AN
CE
Supreme Uncoated is an environmentally friendly paper
manufactured under the strict ISO 14001 Environmental
Management System using elemental chlorine free pulp
sourced from well-managed forests. Supreme Laser is
FSC® Mixed Sources certified and is also archival guaranteed.