Latest news with #APAJF
Business Insider
03-06-2025
- Business
- Business Insider
APA Group (APAJF) was downgraded to a Sell Rating at Morgans
Morgans analyst Nathan Lead downgraded APA Group (APAJF – Research Report) to a Sell today and set a price target of A$7.36. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Lead covers the Industrials sector, focusing on stocks such as Dalrymple Bay Infrastructure Ltd., Transurban Group, and Cleanaway Waste Management. According to TipRanks, Lead has an average return of 2.5% and a 53.13% success rate on recommended stocks. Currently, the analyst consensus on APA Group is a Moderate Buy with an average price target of $5.49. APAJF market cap is currently $6.98B and has a P/E ratio of -225.00. Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APAJF in relation to earlier this year.
Yahoo
24-02-2025
- Business
- Yahoo
APA Group (APAJF) (H1 2025) Earnings Call Highlights: Strong EBITDA Growth and Strategic Focus ...
Underlying EBITDA: Up 9.1% to just over $1 billion. Free Cash Flow: Increased by approximately 4% to $552 million. Interim Distribution: $0.27 per security. FY25 Distribution Guidance: Reaffirmed at $0.57 per security, up $0.01 from last year. FY25 EBITDA Guidance: Between $1.96 billion and $2.02 billion. FFO to Net Debt: 10.7%, above target. Net Profit After Tax: $34 million, impacted by higher depreciation and interest costs. Organic Growth Pipeline: $1.8 billion, fully funded. Distribution Yield: 8.5%. Inflation-Linked Revenues: More than 90% of revenues are inflation-linked. Warning! GuruFocus has detected 10 Warning Signs with APAJF. Release Date: February 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. APA Group (APAJF) reported a strong earnings growth with underlying EBITDA up 9.1% to over $1 billion for the first half of FY25. The company has a robust balance sheet with ample funding capacity, supporting a $1.8 billion organic growth pipeline. APA Group's assets are long-life and highly cash flow generative, with more than 90% of revenues being inflation-linked. The company is focused on cost reduction initiatives, which are expected to deliver meaningful efficiencies and enhance margins. Strong customer demand and recontracting have filled the order book for winter demand on the east coast until 2027, indicating stable future revenues. There is uncertainty regarding the future contribution of the Wallumbilla Gladstone pipeline post-2035 when the Shell contract expires. The integration and performance of new developments, such as the Port Hedland solar and battery project, are still in early stages and subject to regulatory approvals. The company faces challenges in electrifying its gas facilities due to economic viability concerns, impacting emissions reduction targets. APA Group's share price has been trending downwards, raising concerns about the cost of capital and potential returns on new projects. There is a need for significant customer commitments to progress major projects like the East Coast grid expansion, which could impact timelines. Q: Can you confirm whether APA Group has the capacity to fund the new electricity transmission network under the WA Pilbara Energy Transition plan? A: Adam Watson, CEO, confirmed that the $1.8 billion organic growth pipeline, which is fully funded, does not include the East Pilbara network. The East Pilbara network is in early development stages, and APA is working with the WA government and other stakeholders. The focus remains on the fully funded $1.8 billion pipeline. Q: Are there plans to sell down assets like the Wallumbilla Gladstone pipeline to support funding? A: Adam Watson, CEO, stated there is no immediate need to sell any assets. APA is focused on portfolio optimization and may consider asset sales or partnerships if they create more value. The company is not in a rush to divest assets unless it aligns with strategic goals. Q: What are the targets for corporate cost reduction initiatives? A: Adam Watson, CEO, outlined that APA is targeting enterprise-wide cost optimization, focusing on supply chain efficiencies, system and process improvements, and streamlining the operating model. The aim is to deliver meaningful cost reductions without specifying exact figures yet. Q: How are the new Port Hedland assets performing, and what is the outlook for growth in the Pilbara? A: Adam Watson, CEO, reported that the Port Hedland solar and battery farm completed construction and is undergoing connection processes. APA is confident in the growth opportunities in the Pilbara, working closely with customers to bring projects to fruition. Q: What is the status of the East Coast grid expansion and customer commitments? A: Adam Watson, CEO, explained that APA is working with customers to secure commitments for the East Coast grid expansion. The company aims to reach FID for projects like the Baloo pipeline and Riverina storage by FY26 to support future winter capacity needs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
