Gas infrastructure operator APA Group plans to raise about $500 million from investors to help fund its new pipeline, power station and wind farm projects.
APA’s capital raising was announced as it reported a fall in first-half profit of 11.3 per cent to $124 million, and steady revenue and earnings.
The company is offering existing shareholders new shares at a discount of almost seven per cent on their latest trading value of $8.26.
The company said the proceeds will help fund more than $1.2 billion in projects it has committed to over the next two years, in order to meet the growing demand for infrastructure from its customers.
Managing director Mick McCormack said APA’s first-half results were in line with expectations, and capital expenditure over the next few years will begin delivering additional revenue from the 2018/19 financial year.
“What we’re building and investing in now is in direct response to our customers’ needs to better enable them to run their operations over the coming years,” he said on Wednesday.
“Australia’s energy market is a dynamic one and APA will continue delivering infrastructure to assist the market to evolve for the benefit of our customers.”
The company has maintained its full-year earnings guidance of between $1.475 billion and $1.51 billion, up from 2016/17 earnings of $1.47 billion.
STEADY HALF YEAR RESULT FOR APA GROUP:
* Net profit down 11.3pct to $124m
* Revenue up 0.8pct to $1.2b
* Partially franked interim distribution up 0.5 cents to 21 cents