APA Group (APA) 2016年年度報告「ASX」.pdf

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1、apa groupannual report.2016energy.connected.As a leader in energy delivery,APA will continue to play a key role in defining and delivering the future of Australian energy.We believe that natural gas provides an energy solution that will enable the world to transition to a carbonefficient future,whil

2、st maintaining economic growth.From pipes to power,weve been connecting Australian energy since 2000 to become Australias largest gas infrastructure business today.to connect Australia toour vision.contents.FY2016 IN REVIEWChairmans Report 2Managing Directors Report 4APA Leadership 6Highlights 8AUST

3、RALIAN PIPELINE TRUSTDirectors Report 10Australian Pipeline Trust Remuneration Report 34Consolidated Financial Statements 50APT INVESTMENT TRUSTDirectors Report 97Consolidated Financial Statements 101ADDITIONAL INFORMATION 119FIVE YEAR SUMMARY 120INVESTOR INFORMATION 121SUSTAINABILITY REPORT S1Infor

4、mation contained in this document is current as at 24 August 2016.its energy future.Continuing to grow our ownership interests in transmission pipelines through further expanding the east and west coast gridsDelivering responsive,valuable solutions to our customersGrowing other energy infrastructure

5、 midstream assetsour strategy.Maintaining financial flexibilityLeveraging APAs asset management,development and operational capabilities1APA Group Annual Report 20161APA has been able to reap the benefits of this strategy,seeing earnings come through from capital we have invested in growing our asse

6、t base through acquisitions and organic expansion.The FY2016 results include a full year of earnings from the Wallumbilla Gladstone Pipeline acquired in FY2015 and increasing revenue streams from the ongoing expansion of both the East Coast Grid and expansions and greenfields investment in Western A

7、ustralia.APAs long term vision,strategic planning and focused execution have seen the business continue to deliver prudent distribution growth and long term market-leading increases in Securityholders value.The total distributions for FY2016 of 41.5 cents per security represent a 9.2 per cent increa

8、se over FY2015.As per our distribution policy,distributions have been fully covered by operating cash flows with an appropriate amount of those cash flows retained within the business to support growth.Your Board believes that the increase in distributions represents a prudent increase in returns fo

9、r Securityholders given the current economic environment.The Board is of the view that the 41.5 cents per security represents a solid base from which to increase distributions on a sustainable basis going forward.Long term sustainability is what APA is all about.We continue to see good opportunities

10、 for organic growth in front of us and we are mindful of ensuring that the business is in a position to fund that growth going forward.We will continue to maintain a disciplined approach to investing in growth that delivers long term value for Securityholders and positions APA securely for the futur

11、e.Despite the challenges within the global and Australian energy sector in FY2016 with volatile energy market conditions and the rebalancing of global demand and supply,we have continued the execution of APAs long standing growth-based strategy.We have invested in enhancing our existing assets and d

12、uring the year we acquired two complementary assets in the Diamantina and Leichhardt Power Stations and the Ethane Pipeline,to connect more energy resources to more markets.We continue to innovate through provision of new services that are helping our customers manage their energy needs,particularly

13、 during what have been relatively uncertain times from an economic,political and regulatory perspective.Our sustainable business model and strong balance sheet have enabled us to navigate the current economic environment and make the most of opportunities that arise and,most importantly,position us

14、for further growth in the years ahead.Solid resultsThe strength of our low risk,resilient business model is reflected in APAs FY2016 financial results.Earnings before interest,tax,depreciation and amortisation(“EBITDA”)from continuing businesses were$1,330.5 million 1,an increase of 61.8 per cent on

15、 FY2015 normalised EBITDA of$822.3 million 2.Revenue(excluding pass-through revenue)increased by$536.7 million to$1,656.0 million,an increase of 48.0 per cent on the FY2015 result of$1,119.2 million.+16.7%total securityholder return for FY2016+19.1%compound annual growth rate of total securityholder

16、 return since lising in June 2000chairmans report.I am pleased to report another solid year for APA.The FY2016 results represent the outcome of a consistent and prudent strategy of growth and value creation.1)There were no significant items for FY2016,therefore statutory and normalised EBITDA are th

17、e same for FY2016.2)For FY2015,normalised EBITDA excludes significant items of$447.2 million relating mainly to profit on the sale of APAs shareholding in Australian Gas Networks,previously Envestra Limited.2APA Group Annual Report 2016Changing fundamental regulatory settings at this time is not the

18、 answer to increasing gas supply innovation and investment is.Increased regulation will simply stifle innovation and reduce Australias rise as a global energy player.APAs East Coast Grid is an example of innovation and investment at its best.It was conceived,created and funded by APA.Without investm

19、ent and innovation by the private sector over the last 16 years,Australias energy infrastructure would still be standalone point-to-point operations without the benefits of interconnection,reverse flow,increased capacity,or the ability to deliver customers a wide selection of variable services.Witho

20、ut that innovation,Australias vast reserves of gas would not have been brought to market as effectively as they have today.And without those reserves in production,Australia would not have enjoyed the economic contribution from the LNG exports nor the massive employment that the construction of LNG

21、plants,pipelines and associated infrastructure have brought.It is by enhancing market mechanisms such as improved capacity trading platforms,information transparency and capacity auctions on congested pipelines,that gas market growth and further development will be facilitated.The prospect of increa

22、sed heavy handed regulation will not deliver the market efficiencies and innovation that is needed over the longer term.GovernanceDuring the year,after completion of APAs formal appointment and nomination process,two new Directors were appointed to your Board.These appointments added further diversi

23、ty,skills and experience around the boardroomtable.Along with the Nominations Committee established during the year,your Board continues to ensure that it possesses an appropriate mix of expertise to effectively govern the business.OutlookThe Board is confident that APA remains well placed to contin

24、ue delivering sustainable and profitable growth for you,our Securityholders.The review of our growth strategy that I mentioned earlier,identified around$1.5 billion of organic opportunities in the near term,across the asset classes that are already within APAs portfolio of transmission pipelines,ren

25、ewable and generation assets and midstream complementary assets.APA is a long term business and decisions are made for the sustainable future of this business.With this in mind,our guidance for FY2017 reflects a 7to 8.5 per cent increase in EBITDA of$1,425 million to$1,445 million,on a normalised,co

26、ntinuing business basis.Total distributions per security are expected to be in the order of 43.5 cents per security,prior to the benefit of any franking credits that may arise as a result of the filing of the FY2016 tax return.On behalf of the Board,I thank our Managing Director Mick McCormack,his l

27、eadership team and APAs people for their contributions this year.I also thank you,our Securityholders,for your continued support.Len Bleasel AMChairmanThe increases in EBITDA and revenue were in the main due to a full year contribution from the Wallumbilla Gladstone Pipeline that we acquired in June

28、 2015 and the expanded East Coast Grid(South West Queensland Pipeline in particular),as expected;part-year contributions from the Diamantina and Leichhardt Power Stations and the Ethane Pipeline acquired during the last quarter of the financial year;and,the commissioning of APAs newest greenfield pr

29、oject,the Eastern Goldfields Pipeline in November 2015.Operating cash flow which is a key measure of APAs business,increased by 58.2 per cent to$862.4 million.Delivering valueAs we do annually,the Board and senior management recently took time out to revisit our past performance,and more importantly

30、,look at our strategy and what we can and should be doing in the years ahead,so that we can continue to grow and deliver services to our customers and value to our Securityholders.We have built a business that is solid and sustainable.From having the right balance sheet and risk framework in order t

31、o maintain our“license to operate”,to using our in-house operational and development expertise to deliver energy when and where it is needed.All of the initiatives and strategic actions from past investments and innovations are delivering benefits now that will continue well into the future.Looking

32、forward,we remain committed to providing our investors with secure and stable returns via our strategies of organic growth on assets that we own and operate,and prudent acquisitions of long life energy infrastructure that is underwritten by long term contracts with highly creditworthycounterparties.

33、We remain focused on growing and strengthening APA further and we concluded from our review that opportunities still remain to expand and enhance our assets,be they transmission pipelines,renewable and generation assets or midstream complementary assets.Our growth strategy will be pursued using the

34、same sound,disciplined and prudent investment criteria that has brought us to where we aretoday.As we marked 16 years as a listed company,we have not forgotten about ensuring our house is in order for the long term.During the year,APA launched the APA2020 vision;an investment in further optimising o

35、perations and improving efficiencies to bring out the best in our people and our assets.APA2020 is an ongoing project within APA that focuses on ensuring we are ready as a business to meet the challenges of the future.Regulatory environment The Australian gas market is a substantial way through the

36、biggest transition it is ever likely to see with the commissioning of all three LNG projects at Gladstone.The market needs time to transition and adjust,which it is doing.Our industry will continue to change and evolve,adapting to global and local market conditions.Policy options to respond to these

37、 changes have been considered in the finalised reports from both the Australian Energy Market Commission(“AEMC”)and the Australian Competition and Consumer Commission(“ACCC”)on the east coast gas markets,culminating in the Coalition of Australian Governments(“COAG”)meeting on 19 August 2016.APA supp

38、orts the objective of developing a liquid gas market and recognises that some of the recommendations put forward by the AEMC and agreed by COAG will have operational impacts on APA.Possible impacts are discussed further in the Directors Report.The important point though,is that APA will remain activ

39、ely engaged in these discussions and,as we have proactively facilitated the market to this point,we fully intend to be part of the ultimate solution.3APA Group Annual Report 2016It has become even more important for APAs national footprint of assets to be able to respond to customers needs to delive

40、r energy safely,and in a timely and cost-effectivemanner.Innovative solutions like APAs multi asset and services contracts that are replacing basic point-to-point gas transportation contracts,IT systems and facilities such as our Integrated Operations Centre,coupled with in-house expertise has meant

41、 that APA has been able to support our customers through these dynamic times,whilst insulating our business from this uncertainty.APA has maintained its low risk business model,generating stable and predictable returns for our Securityholders.Our assets are geographically diverse and can operate as

42、interconnected infrastructure or point-to-point assets,with all major pipelines now having the ability to flow gas in dual directions.We have a mix of energy infrastructure assets and businesses including gas pipeline transportation,gas storage,gas-fired power production,electricity transmission,net

43、work operations and renewable electricity generation.The majority of the contracts that we have across these assets are long term take-or-pay contracts with investment grade counterparties in a range of diversified sectors including energy,utilities and resourcessectors.Building on sound foundations

44、The FY2016 results reflect the benefits of our investments and innovation from prior years.The Wallumbilla Gladstone Pipelines first full year contribution has had a significant impact on our results as expected.There have also been strong and growing contributions from various investments and expan

45、sions from prior years,including the South West Queensland Pipeline and the Victoria NorthernInterconnect.During the year,a total of$673.6 million was spent on capital and investment expenditure.In Western Australia,we completed construction of the 293 kilometre Eastern Goldfields Pipeline and added

46、 another connection to it at Granny Smith in addition to AngloGold Ashantis mines at Tropicana and Sunrise Dam.An enhancement project at the Mondarra Gas Storage Facility was completed,increasing injection/withdrawal capacity of the facility to better respond to gas market volatility.Projects to imp

47、lement two-way flow on the Moomba Sydney Pipeline and Roma Brisbane Pipeline were also completed and the market benefited significantly from this added flexibility on the East Coast Grid during the year.In the south,capacity expansion works continued on the Victorian Northern Interconnect which when

48、 complete,will expand the interconnect to 200 TJ/day allowing more gas to flow north from southern supply sources.We are always on the lookout for complementary midstream assets where we can leverage our skills and existing assets.During FY2016,APA acquired two such energy infrastructure assets that

49、 we had previously held an investment stake in the Diamantina and Leichhardt managing directors report.It is an exciting time to be in the energy industry.The commissioning of the export LNG facilities at Gladstone have trebled the volume of gas moving around on the east coast of Australia and commo

50、dity price volatility has created new dynamics in the resources sector in the far north and western regions of the country.Power Stations in Queensland and the Ethane Pipeline Income Fund that owns the Moomba to Sydney Ethane Pipeline.Both acquisitions were a perfect fit with APAs growth strategy:th

51、e assets were well known to APA;they are either connected or close to our existing infrastructure;we have had operational involvement with them for some time;and both have long term contracts with creditworthy customers.Importantly,each investment is operating cash flow per security accretive from t

52、he first full year ofownership.Since closing the financial year,in August 2016,we acquired with our SEA Gas partner REST Industry Super,the onshore pipeline supplying gas from the offshore Otway Basin to the Origin-owned Mortlake Power Station.Again,this is an asset we already know well through our

53、ownership with REST,of the Sea Gas Pipeline.Invest and innovate for the futureAPA has in fact,spent over$12 billion since its listing on acquiring and developing energy infrastructure assets,systems and technology.All of this investment has been undertaken for the purpose of working with our custome

54、rs and assisting the growth and development of the gas and energy industries,connecting more energy supplies to energy markets and providing innovative services and solutions to encourage more gas to flow throughoutAustralia.We are innovators and not simply point-to-point gas pipeline operators.We w

55、ill,as we have always done,continue to evaluate new opportunities that diversify and extend our growth and footprint,as well as further develop and grow the energy industry.To this end we have been,without waiting for the final AEMC report or the COAG meeting,facilitating pipeline capacity trading e

56、nhanced by our new Integrated Operations Centre,during FY2016.At Wallumbilla and Moomba,we have commenced developing and providing hub services.Strategically,we have been a growth oriented business since listing in 2000 and we believe in value creation which benefits not only our stakeholders,but th

57、e Australian economy aswell.The global economic consulting firm,The Brattle Group,recently estimated the direct quantifiable efficiency benefits to the market associated with formation of APAs East Coast Grid since 2012 to be$120 to$150 million to-date,and$15 to$32 million annually going forward.Tha

58、t is a significant contribution for a private company to be making to industry as a whole and I am very proud of this.We believe that natural gas provides an energy solution that will enable the world to transition to a more carbon-efficient environment,whilst maintaining economic growth.Therefore,a

59、 strong and responsive infrastructure sector is essential in allowing gas to fuel our energy future whilst investigating and pursuing renewable opportunities such as wind and solar generation.4APA Group Annual Report 2016Health,Safety and EnvironmentThis year,we are releasing our Sustainability Repo

60、rt at the same time as our annual results.Without wanting to repeat everything in that report,I do want to reiterate here that APA continues to be focused on delivering sustainability objectives and we remain mindful of the role we play within the community and the responsibility we have to all of o

61、ur stakeholders our customers,the environment,the community,our employees and investors.FY2016 is the first full year of using APAs new incident reporting platform which has provided improved access,analysis and rigour around the reporting of incidents and injuries across the organisation and its co

62、ntractors.Safety is a priority at APA because providing safe and reliable energy delivers value for our customers and investors.Most importantly,it also ensures we fulfil our obligations to our employees and the communities and environment within which we operate,in terms of health,safety and enviro

63、nmental outcomes.Please refer to the Sustainability Report contained in this report for my message and further details.Brand refreshYou will have noticed that we have refreshed our brand and corporate logo during the year.Brands can help define a companys culture and to this end,we have come up with

64、 something new,but something that still represents what APA and its people want to deliver.Importantly,whilst our brand and logo have changed,our core values have remained the same.The red dot represents our continued enthusiasm for,and focus on,delivering for our stakeholders,be they sustainable re

65、turns for our investors or reliable energy supply for our customers.Looking aheadAPA will continue to invest and innovate.As an industry leader,APA will remain an active player in helping shape the best environment for the Australian gas market,continuing to promote what we believe is best for our i

66、ndustry.It is in the interests of the pipeline sector to have as much gas flowing through pipelines as possible indeed that has always been APAs mantra more gas means more pipelines and midstream infrastructure and service solutions that we can offer our customers.The Australian,and indeed global,en

67、ergy landscape will continue to evolve throughout the new financial year and I am confident that APA is in good shape to manage the dynamic environment ahead and that our best days continue to be in front of us.We will maintain our focus on growing the APA business through organic expansion of our c

68、urrent portfolio of assets to meet our customers specific needs and by looking to acquire assets that meet our strategic objectives.And,most importantly,we will continue to focus on growing the business to deliver more value to our Securityholders over the long term.I would like to thank APAs 1,600

69、strong team of highly capable and dedicated employees for their enthusiasm and commitment to building our resilient and growing business.Mick McCormackChief Executive Officer and Managing Director$150 mestimated direct quantifiable efficiency benefits to the market associated with the formation of A

70、PAs East Coast Grid 1293 kmadded to APAs asset portfolio with the completion of the Eastern Goldfields Pipeline1)Source:The Brattle Group Report“Benefits and Costs of Integration in Transmission/Transportation Networks”August 2016.5APA Group Annual Report 2016apa group board.1 Leonard Bleasel AM FAI

71、CD FAIMIndependent ChairmanAPPOINTED:28 August 2007APPOINTED CHAIRMAN:30 October 2007Leonard(Len)had a long career in the energy industry before retiring from management in 2001.He started his career in AGL in 1958 and worked in a variety of roles,culminating in the position of Managing Director and

72、 CEO from 1990 to 2001.Lens past appointments have included lead non-executive Director of QBE Insurance Group Limited and Chairman of Foodland Associated Limited,ABN AMRO Australia Holdings Pty Limited,Solaris Power,Natural Gas Corporation Holdings Ltd(New Zealand),Elgas Ltd,East Australian Pipelin

73、e Ltd,the Advisory Council for CIMB Securities International(Australia)Pty Ltd and the Taronga Conservation Society Australia.He was also a Director of St George Bank Limited,OConnell Street Associates Pty Limited and Gas Valpo(Chile).Len was awarded an AM in the General Division of the Order of Aus

74、tralia for services to the Australian gas and energy industries and thecommunity.2 Michael McCormack BSurv GradDipEng MBA FAICDChief Executive Officer and Managing DirectorAPPOINTED CEO:1 July 2005APPOINTED MD:Appointed 1 July 2006Michael(Mick)has over 30 years experience in the energy infrastructur

75、e sector in Australia,and his career has encompassed all aspects of the sector,including commercial development,design,construction,operation and management of most of Australias natural gas pipelines and gas distribution systems.His experience extends to gas-fired and renewable energy power generat

76、ion.Mick is a former Director of Envestra(now Australian Gas Networks),the Australian Pipeline Industry Association(now Australian Pipelines and Gas Association)and the Australian BrandenburgOrchestra.3 Steven Crane BComm FAICD SF FinIndependent DirectorAPPOINTED:1 January 2011Steven(Steve)has over

77、30 years experience in the financial services industry.His background is in investment banking,having previously been Chief Executive Officer of ABN AMRO Australia and BZW Australia.Steve has considerable experience as a non-executive Director of listed entities.He is currently Chairman of nib holdi

78、ngs limited and the Taronga Conservation Society Australia.He was formerly Chairman of Adelaide Managed Funds Limited and Investa Property Group Limited,a Director of Bank of Queensland Limited,Transfield Services Limited,Adelaide Bank Limited,Foodland Associated Limited and APA Ethane Limited,the r

79、esponsible entity of Ethane Pipeline Income Fund,and a member of the Advisory Council for CIMB Securities International(Australia)PtyLtd.Steve is the Chairman of the Audit and Risk Management Committee,a member of the People and Remuneration Committee and a member of the Nomination Committee.4 John

80、Fletcher BSc MBA FAICDIndependent DirectorAPPOINTED:27 February 2008John has over 35 years experience in the energy industry,having held a number of executive positions in AGL(including Chief Financial Officer)prior to his retirement in 2003.John has previously been a Director of Integral Energy,Nat

81、ural Gas Corporation Holdings Ltd(New Zealand),Foodland Associated Limited,Sydney Water Corporation and Alinta Energy Group.He brings a wide commercial and financial practical knowledge to the Board.John was previously an AGL appointed Director of Australian Pipeline Limited from 2000 to 2005.John i

82、s the Chairman of the People and Remuneration Committee,a member of the Audit and Risk Management Committee and a member of the Nomination Committee.5 Michael Fraser BCom FCPA FTI MAICDIndependent Director(since 19 July 2016)APPOINTED:1 September 2015Michael has more than 30 years experience in the

83、Australian energy industry.He has held various executive positions at AGL Energy culminating in his role as Managing Director and Chief Executive Officer for the period of seven years until February 2015.Michael is a Director of Aurizon Holdings Limited.He is also a former Chairman of the Clean Ener

84、gy Council,Elgas Limited,ActewAGL and the NEMMCo Participants Advisory Committee,as well as a former Director of Queensland Gas Company Limited,the Australian Gas Association and the Energy Retailers Association ofAustralia.Michael is a member of the People and Remuneration Committee,a member of the

85、 Health Safety and Environment Committee and a member of the NominationCommittee.6 Debra Goodin BEc FCA MAICDIndependent DirectorAPPOINTED:1 September 2015Debra(Debbie)has considerable experience as a non-executive director,including as a member and Chair of Board Audit and Risk Committees.She is cu

86、rrently a Director of ASX-listed companies Ten Network Holdings Limited,Senex Energy Limited and oOh!media Limited,and chairs the Audit and Risk Committees of each of thoseBoards.Debbie also has extensive executive experience in operations and corporate development,including with engineering and pro

87、fessional services firms,and is a Fellow of Chartered Accountants Australia and New Zealand.Debbie is a member of the Audit and Risk Management Committee,a member of the Health Safety and Environment Committee and a member of the NominationCommittee.7 Russell Higgins AO BEc FAICDIndependent Director

88、APPOINTED:7 December 2004Russell has extensive experience both locally and internationally,in the energy sector and in economic and fiscal policy.He was Secretary and Chief Executive Officer of the Department of Industry,Science and Resources from 1997 to 2002 and Chairman of the Australian Governme

89、nts Energy Task Force from 2003 to 2004.Russell is a Director of Telstra Corporation Limited and Argo Investments Limited.He is a former Chairman of the Global Carbon Capture and Storage Institute,the CSIRO Energy Transformed Flagship Advisory Committee and Snowy Hydro,as well as a former Director o

90、f Leighton Holdings Limited,Ricegrowers Limited(trading as SunRice),St James Ethics Foundation,Australian Biodiesel Group Limited,EFIC and the CSIRO.He was also previously a member of the Prime Ministerial Task Group on Emissions Trading.Russell is Chairman of the Health Safety and Environment Commi

91、ttee,and a member of the Audit and Risk Management Committee and a member of the Nomination Committee.8 Patricia McKenzie LLB FAICDIndependent DirectorAPPOINTED:1 January 2011Patricia has considerable expertise and experience in energy market regulation and,as a qualified solicitor,extensive corpora

92、te legal experience.She is currently Chair of Essential Energy and Healthdirect Australia.Patricia was formerly a Director of Macquarie Generation,TransGrid and the Australian Energy Market Operator Limited(AEMO),the national energy market operator for electricity and gas,and formerly the Chief Exec

93、utive Officer of Gas Market Company Limited,the market administrator for retail competition in the gas industry in New South Wales and the Australian CapitalTerritory.Patricia is a member of the Health Safety and Environment Committee,a member of the People and Remuneration Committee and a member of

94、 the Nomination Committee.123478566APA Group Annual Report 2016apa group senior management.9 Nevenka Codevelle BCom LLM MAICDCompany Secretary and General CounselAPPOINTED:22 October 2015Nevenka is responsible for APA Groups Secretariat and Legal division.The division comprises the company secretari

95、al,legal,and group risk and compliancefunctions.Nevenka joined APA Group in February 2008 and has held the role of General Counsel since June 2012.In October 2015,Nevenka joined the Executive team upon becoming Company Secretary.Prior to joining APA,Nevenka had over 15 years experience in private le

96、gal practice in Australia and overseas as an infrastructure and regulatory lawyer,and was an energy and infrastructure access policy advisor with the National Competition Council.10 John Ferguson MIGEAustGroup Executive NetworksJohn is responsible for the operation and management of APA Groups fully

97、 and minority owned gas distribution assets,as well as for Australian Gas Networks assets together covering 28,424 kilometres of gas distribution pipelines and 1.3 million gas users in easternAustralia.John joined APA Group in September 2008,continuing his 39-year career in the gas infrastructure bu

98、siness,covering operations,network development and gasmarketing.11 Peter Fredricson BCom CA GAICDChief Financial OfficerPeter is responsible for all financial aspects of APA Group,including accounting and financial reporting,financial compliance and governance,taxation,treasury,balance sheet managem

99、ent,capital strategy,insurance,investor relations and informationtechnology.Peter joined APA Group in June 2009.He has considerable expertise in the listed energy infrastructure sector and over 20 years experience in senior financial roles in financial services and investment banking organisations a

100、cross Australia,New Zealand andAsia.12 Ross Gersbach BBus MAICD Chief Executive Strategy&DevelopmentRoss is responsible for APA Groups,strategy,energy investments,regulatory and government affairs,environmental development,and mergers and acquisitions.He has responsibility for further enhancing APA

101、Groups portfolio of assets that complement the value of its infrastructure,including APA Groups investments in gas-fired and wind power generation,and the operation and development of theseassets.Ross was previously a Director of APA Group from 2004 to 2008 joining the management team in April 2008

102、where he was responsible for all commercial aspects of APA Group.He has over 20 years experience in senior positions across a range of energy related sectors,covering areas such as infrastructure investments,mergers and acquisitions and strategic developments.Additionally,Ross has extensive commerci

103、al experience and has managed a portfolio of infrastructure assets in the natural gas and electricity distribution network sector.13 Kevin Lester BEng(Civil)MIEAust GAICD Group Executive Infrastructure DevelopmentKevin is responsible for the project development,engineering,procurement and delivery o

104、f APA Groups infrastructure expansion projects.This division also has responsibility for providing asset management services,the technical regulation of all pipeline related assets,procurement,engineering services and the provision of land,approvals and asset protection services acrossAPA.Kevin join

105、ed APA Group in August 2012 continuing a career in the management of major infrastructure projects,including energy infrastructure.Kevin is a Director and a Past President of the Australian Pipelines and GasAssociation.14 Elise Manns BBus CAHRIGroup Executive Human ResourcesElise is responsible for

106、managing APA Groups Human Resources function,which covers HR strategy,health,safety and environment and all activities relating to our people,their development andemployment.Elise joined APA Group in May 2012 as General Manager Human Resources and in October 2015 joined the Executive team becoming G

107、roup Executive Human Resources.Elise has a strong background in employment relations and workplace change,organisational restructuring and business improvement.Elise has over 25 years human resources experience in Australias heavy manufacturing,engineering,steel and utilitiessectors.15 Rob Wheals BC

108、om CA GAICD Group Executive TransmissionRob is responsible for the management of the commercial and operational performance of APA Groups transmission and gas storageassets.Rob joined APA Group in September 2008 and is responsible for managing APAs customers and revenue contracts,as well as growing

109、APAs gas transmission revenues.This has included the organic expansion of APA Groups gas transmission and storage portfolio,totalling in excess of$2 billion of capital projects.Rob is also responsible for managing all operational aspects of APAs 15,000 kilometres of owned and operated gas transmissi

110、on pipelines and gas storage facilities.Prior to joining APA,Rob had over 15 years of experience in telecommunications in Australia and internationally,including roles in finance,commercial,strategy,infrastructure investments and mergers and aquisitions,as well asregulatory.12151013111497APA Group A

111、nnual Report 2016highlights FY2016.market capitalisationas at 30 June 201641.5FY2016 total distribution per security+9.2%on FY201533,478new network gas connections$673.6 mtotal capital and investment expenditure$1,330.5 mEBITDA+61.8%on FY2015$862.4 moperating cash flow+58.2%on FY2015$1,656.0 mrevenu

112、e excluding passthrough+48%on FY2015$10.3b8APA Group Annual Report 2016highlights FY2016.continued.1)Normalised financial results exclude significant items.2)Pass-through revenue is revenue on which no margin is earned.Pass-through revenue arises in the asset management operations in respect of cost

113、s incurred and passed on to Australian Gas Networks Limited(“AGN”)and GDI in respect of the operation of the AGN and GDI assets respectively.3)This amount represents current and non-current borrowings as per balance sheet and is adjusted for deferred borrowing costs,the effect of unwinding of discou

114、nt,unrealised foreign exchange differences reported in equity and deducting other financial liabilities that are reported as part of borrowings in the balance sheet.4)Between 23 December 2014 and 28 January 2015,APA issued a total of 278,556,562 new ordinary securities,resulting in total securities

115、on issue of 1,114,307,369.The weighted average number of securities for FY2015 has been adjusted in accordance with the accounting principles of AASB133:Earningsper Share,for the rights issue.5)Gearing=net debt divided by net debt plus equity.6)Operating cash flow=net cash from operations after inte

116、rest and tax payments.financial results 2016 2015 Change 2016 2015 Change Normalised 1 Normalised 1 Normalised 1 Statutory Statutory Statutory$million$million%$million$million%Revenue 2,094.3 1,553.6 34.8 2,094.3 1,553.6 34.8Revenue excluding passthrough 2 1,656.0 1,119.2 48.0 1,656.0 1,119.2 48.0EB

117、ITDA 1,330.5 822.3 61.8 1,330.5 1,269.5 4.8Profit after tax 179.5 203.9(12.0)179.5 559.9(67.9)Operating cash flow 6 862.4 545.0 58.2 862.4 562.2 53.4Financial positionTotal assets 14,842.7 14,652.9 1.3 14,842.7 14,652.9 1.3Total drawn debt 3 9,037.3 8,642.8 4.6 9,037.3 8,642.8 4.6Total equity 4,029.

118、1 4,382.7(8.1)4,029.1 4,382.7(8.1)Financial ratiosOperating cash flow per security 4(cents)77.4 54.8 41.2 77.4 56.5 37.0Earnings per security 4(cents)16.1 20.5(21.5)16.1 56.3(71.4)Distribution per security(cents)41.5 38.0 9.2 41.5 38.0 9.2Distribution payout ratio(%)53.6 68.8(22.0)53.6 66.6(19.5)Gea

119、ring 5(%)66.4 63.4 nm 66.4 63.4 nmInterest cover ratio(times)2.6 2.6 nm 2.6 2.6 nmEBITDA($m)FY12FY13FY14FY15FY1602004006008001,0001,2001,400($m)1,331Operating cash flow per security 4(cents)FY12FY13FY14FY15FY16020406080(cents)77.4normalised resultsRevenue excluding passthrough2($m)FY12FY13FY14FY15FY

120、1602004006008001,0001,2001,4001,6001,800($m)1,656Operating cash flow 6($m)FY12FY13FY14FY15FY160100200300400500700800600900($m)862Total assets($b)FY12FY13FY14FY15FY16051015($b)14.8Distributions per security(cents)FY12FY13FY14FY15FY1601020304050(cents)41.59APA Group Annual Report 2016Australian Pipeli

121、ne Trust and its Controlled Entities(ARSN 091 678 778)Directors Report for the year ended 30 June 2016The Directors of Australian Pipeline Limited(“Responsible Entity”)submit their financial report of Australian Pipeline Trust(“APT”)and its controlled entities(together“APA”or“Consolidated Entity”)fo

122、r the year ended 30 June 2016.This report refers to the consolidated results of APT and APT Investment Trust(“APTIT”).1.DirectorsThe names of the Directors of the Responsible Entity during the year and since the year end are:Leonard Bleasel AM ChairmanMichael(Mick)McCormack Chief Executive Officer a

123、nd Managing DirectorSteven(Steve)CraneJohn FletcherMichael Fraser Appointed effective 1 September 2015Debra(Debbie)Goodin Appointed effective 1 September 2015Russell Higgins AOPatricia McKenzieRobert Wright Retired 22 October 2015The Company Secretary of the Responsible Entity during and since the c

124、urrent period is as follows:Nevenka Codevelle Appointed 22 October 2015Mark Knapman Retired 22 October 20152.Principal ActivitiesThe principal activities of APA during the course of the year were the ownership and operation of energy infrastructure assets and businesses,including:energy infrastructu

125、re,primarily gas transmission businesses located across Australia;asset management and operations services for the majority of APAs energy investments and for third parties;and energy investments in listed and unlisted entities.3.State of AffairsNo significant change in the state of affairs of APA o

126、ccurred during the financial year.4.Subsequent EventsExcept as disclosed elsewhere in this report,the Directors are unaware of any matter or circumstance that has occurred since the end of the year that has significantly affected or may significantly affect the operations of APA,the results of those

127、 operations or the state of affairs of APA in future years.5.About APA5.1 APA overviewAPA is Australias largest natural gas infrastructure business.It owns and/or operates around$20 billion of energy infrastructure across Australia,and operates these with a skilled workforce of in excess of 1,600 pe

128、ople.APA has a diverse portfolio of over 15,000 kilometres1 of gas transmission pipelines that spans every state and territory on mainland Australia and delivers about half the nations natural gas.It also owns or has interests in other related energy infrastructure assets such as gas storage facilit

129、ies,gas processing facilities,gas compression facilities and power generationassets.APA has ownership interests in,and/or operates,GDI(EII)Pty Ltd(“GDI”)and Australian Gas Networks Limited(previously Envestra Limited)gas distribution networks,which together have approximately 28,400 kilometres of ga

130、s mains and pipelines,and approximately 1.3 million gas consumer connections.APA also has interests in,and operates,other energy infrastructure assets and businesses,including SEA Gas Pipeline,Energy Infrastructure Investments(“EII”)and EII2.APAs objective of maximising securityholder value is achie

131、ved through expanding and enhancing its infrastructure portfolio,securing low risk,long-term revenue on its assets,operating the business safely and efficiently and generating further value through its many and varied service offerings.APA is listed on the Australian Securities Exchange(“ASX”)and is

132、 included in the S&P ASX 50 Index.Since listing in June 2000,APAs market capitalisation has increased more than 20-fold to$10.3 billion(as at 23 August 2016),and it has achieved total securityholder returns of 1,550%or annual compound growth rate of 19.1%2 as at 30 June 2016.1)Owned and or operated

133、by APA.2)Total securityholder return is the capital appreciation of the APAs security price,adjusted for capital management actions(such as security splits and consolidations)and assuming reinvestment of distributions at the declared distribution rate per security.Figures quoted are sourced from IRE

134、SS.directors report.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES10APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES5.2 APA objectives and strategiesAPAs objectives of providing secure and predictable returns to its investors is supp

135、orted by its strategies of:continuing to grow our ownership interests in transmission pipelines through further expanding the East and WestCoastGrids;growing other midstream energy infrastructure assets;leveraging APAs asset management,development and operational capabilities;providing a safe,stimul

136、ating and rewarding workplace;delivering responsive,valuable solutions to customers;continuing to deliver an environmentally responsible,safe and essential service;contributing to the communities APA serves;and maintaining APAs financial strength,flexibility and capability.APA is an owner and operat

137、or of energy infrastructure that is underpinned by long term contracts with highly creditworthycounterparties.This strategy has remained consistent since listing.During the financial year,APA conducted a review of its growth opportunities.APA will continue to be focused on growing the business and h

138、as identified ample opportunities over the long term;both organic growth and potential acquisitions.5.3 APA assets and operationsAPA is a major participant in developing,owning and operating natural gas transportation and energy infrastructure acrossAustralia.APAs assets and operations are reported

139、in three principal business segments:Energy Infrastructure,which includes all of APAs wholly or majority owned pipelines,gas storage assets,gas compression assets,the Emu Downs wind farm and the Diamantina and Leichhardt power stations;Asset Management,which provides commercial,operating services an

140、d/or asset maintenance services to its energy investments for appropriate fees;and Energy Investments,which includes APAs strategic stakes in a number of investment vehicles that house energy infrastructure assets,generally characterised by long-term secure cash flows,with low ongoing capital expend

141、iturerequirements.APA Group assetsWind farmGas storage facilityGas processing plantGas power stationNumbers correspond with names on page 12APA Group investmentsAPA managed(not owned by APA)15262626142826624873152826282626232910928121125262728241317181619212220WASANTQLDVICTASNSWAPA GROUP ASSETS AND

142、OPERATIONS11APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESdirectors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESEnergy Infrastructure assets(numbers correspond with those on the map on page 11)Length/Capacity Reg

143、ulatory statusEast Coast and Northern Territory assets1)Roma Brisbane Pipeline(including Peat Lateral)583 km/233 TJ/d Full regulation2)Carpentaria Gas Pipeline 944 km/119 TJ/d Light regulation3)Berwyndale Wallumbilla Pipeline 112 km Not regulated4)South West Queensland Pipeline 936 km/384 TJ/d Not r

144、egulated5)Wallumbilla Gladstone Pipeline(including Laterals)556 km/1,510 TJ/d Not regulated6)Diamantina and Leichhardt Power Stations 242 MW/60 MW Not regulated7)Moomba Sydney Pipeline 2,029 km/439 TJ/d Light regulation(partial)8)Ethane Pipeline 1,375 km Not regulated9)Central West Pipeline 255 km L

145、ight regulation10)Central Ranges Pipeline 295 km Full regulation11)Victorian Transmission System 1,847 km Full regulation12)Dandenong LNG Storage Facility 12,000 tonnes Not regulated13)SESA Pipeline 45 km Not regulated14)Amadeus Gas Pipeline 1,657 km Full regulation 10,634 kmWest Australian assets15

146、)Pilbara Pipeline System 249 km/166 TJ/d Not regulated16)Goldfields Gas Pipeline(88.2%)1,546 km/202 TJ/d Full regulation17)Eastern Goldfields Pipeline 293 km Not regulated18)Kalgoorlie Kambalda Pipeline 44 km Light regulation19)Mid West Pipeline(50%)362 km/11 TJ/d Not regulated20)Parmelia Gas Pipeli

147、ne 448 km/50 TJ/d Not regulated21)Mondarra Gas Storage Facility 15 PJ Not regulated22)Emu Downs Wind Farm 80 MW Not regulated 2,942 kmEnergy Investments and Asset Management(numbers correspond with those on the map on page 11)Energy InvestmentOwnership interest23)GDI20%Gas distribution:3,355 km of g

148、as mains,99,699 gas consumer connections in Qld24)SEA Gas Pipeline50%Gas pipeline:687 km pipeline from Iona and Port Campbell,Victoria to Adelaide,SA25)Mortlake GasPipeline50%Gas pipeline:83 km pipeline from Otway Gas Plant near Port Campbell to Mortlake Power Station26)Energy Infrastructure Investm

149、ents19.9%Gas pipelines:Telfer/Nifty Gas Pipelines and lateral(488 km);Bonaparte Gas Pipeline(286 km);Wickham Point Pipeline(12 km)Electricity transmission cables:Murraylink(180 km)and Directlink(63 km)Gas-fired power stations:Daandine Power Station(33MW)and X41 Power Station(41 MW)Gas processing fac

150、ilities:Kogan North(12 TJ/d);Tipton West(29 TJ/d)27)EII220.2%Wind generation:North Brown Hill Wind Farm(132MW),SA28)Australian GasNetworksNil 1Gas distribution:23,720 km of gas mains and pipelines,1.23 million gas consumer connections,1,124 km of pipelines in SA,Vic,NSW,Qld&NT29)Tamworth GasNetwork1

151、00%Gas distribution:225 km of gas mains,3,047 gas consumer connections1)In August 2014,APA sold its 33.05%ownership interest in Australian Gas Networks Limited(“AGN”,formerly Envestra Limited).Operating and maintenance agreements with AGN remain in place until 2027.12APA Group Annual Report 2016dire

152、ctors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES6.Financial OverviewEarnings before interest and tax(“EBIT”)and EBIT before depreciation and amortisation(“EBITDA”)excluding significant items are financial measures not prescribed by Australian Accounting Standards(“AIFRS”)

153、and represent the profit under AIFRS adjusted for specific significant items.The Directors consider these measures to reflect the core earnings of the Consolidated Entity,and these are therefore described in this report as normalised measures.For the financial year to 30 June 2016 APA reported EBITD

154、A of$1,330.5 million,an increase of 61.8%or$508.3 million onthe previous corresponding period normalised EBITDA of$822.3 million.1Revenue(excluding pass-through revenue)increased by$533.0 million to$1,656.0 million,an increase of 48.0%on the previous corresponding period(FY2015:$1,119.2 million).Inc

155、reased revenues and EBITDA were primarily attributable to:a full year contribution from the Wallumbilla Gladstone Pipeline;full year contribution from the expanded East Coast Grid(South West Queensland Pipeline in particular);part-year contributions from the Ethane Pipeline and the Diamantina and Le

156、ichhardt Power Stations acquired during theyear;and commissioning of the Eastern Goldfields Pipeline in November 2015.These increases were partially offset by an increase in corporate costs,driven mainly by the North East Gas Interconnect project and APAs bid for the Iona gas storage facility during

157、 the financial year.Ongoing compliance costs relating to a number of inquiries into the gas market and costs associated with an externally facilitated strategy and planning review undertaken during the year also contributed to the increase.Depreciation,amortisation and interest costs each increased

158、by 150.2%and 56.6%respectively,as a result of the acquisition of the Wallumbilla Gladstone Pipeline,adding further significant fixed and intangible assets that are depreciated and amortised for the full year and due to the increase in debt as part of the funding of the acquisition.This resulted in a

159、 decrease of profit after tax by 12.0%to$179.5 million(FY2015(normalised):$203.9 million).An important primary measure of the success of APAs business and the execution of its strategy is that of operating cash flow,which was$862.4 million for FY2016.This represents an increase of 58.2%or$317.4 mill

160、ion over the previous year(FY2015(normalised):$545.0 million),with operating cash flow per security increasing by 41.2%,or 22.6 cents,to 77.4 cents per security(FY2015(normalised):54.8 cents per security).APAs distributions in respect of the financial year total 41.5 cents per security,representing

161、an increase of 9.2%,or 3.5 cents,over FY2015 distributions of 38.0 cents.APA maintains a sustainable distribution policy to ensure its ability to fully fund its distributions out of operating cash flows whilst also retaining appropriate levels of cash in the business to support ongoing growth.The lo

162、wer distribution level in FY2016 reflects the increase in contribution from the Wallumbilla Gladstone Pipeline and APAs guidance to investors that the payout ratio would fall somewhat following the acquisition to allow for future sustainable growth in distribution and funding of ongoing growth of th

163、e business as per APAs current distribution policy.The following table provides a summary of key financial data for FY2016 and includes key reconciling items between statutory results and the normalised financial measures.1)Excluding significant items of$447.2 million relating mainly to profit on th

164、e sale of APAs shareholding in Australian Gas Networks Limited,previously EnvestraLimited.13APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES 30 June 2016 30 June 2015 Changes in Changes in ($000)($000)Statutory accounts Normalised accounts

165、Significant Significant Statutory items Normalised Statutory items 2 Normalised$000%$000%Total revenue 2,094,304 2,094,304 1,553,615 1,553,615 540,689 34.8%540,689 34.8%Pass-through revenue 1 438,330 438,330 434,382 434,382 3,948 0.9%3,948 0.9%Total revenue excluding pass-through 1,655,974 1,655,974

166、 1,119,233 1,119,233 536,741 48.0%536,741 48.0%EBITDA 1,330,543 1,330,543 1,269,490 447,240 822,250 61,053 4.8%508,293 61.8%Depreciation and amortisation expenses(520,890)(520,890)(208,200)(208,200)(312,690)(150.2%)(312,690)(150.2%)EBIT 809,653 809,653 1,061,290 447,240 614,050(251,637)(23.7%)195,60

167、3 31.9%Finance costs and interest income(507,658)(507,658)(324,162)(324,162)(183,496)(56.6%)(183,496)(56.6%)Profit before income tax 301,995 301,995 737,128 447,240 289,888(435,133)(59.0%)12,107 4.2%Income tax(expense)/benefit(122,524)(122,524)(177,198)(91,222)(85,976)30.9%(42.5%)Profit after income

168、 tax 179,471 179,471 559,930 356,018 203,912(380,307)(67.9%)(24,441)(12.0%)Operating cash flow 3 862,435 862,435 562,190 17,201 544,989 300,245 53.4%317,446 58.2%Operating cash flow per security(cents)77.4 77.4 56.5 54.8 20.9 37.0%22.6 41.2%Earnings per security(cents)16.1 16.1 56.3 20.5(40.2)(71.4%

169、)(4.4)(21.5%)Distribution per security(cents)41.5 41.5 38.0 38.0 3.5 9.2%3.5 9.2%Distribution payout ratio 4 53.6%53.6%66.6%68.8%(13.0%)(19.5%)(15.1%)(22.0%)Weighted average number of securities(000)1,114,307 1,114,307 995,245 995,245 119,062 12.0%119,062 12.0%Notes:Numbers in the table may not add

170、up due to rounding.1)Pass-through revenue is revenue on which no margin is earned.Pass-through revenue arises in the asset management operations in respect of costs incurred in,and passed on to Australian Gas Networks Limited(“AGN”,formerly Envestra Limited)and GDI in respect of the operation of the

171、 AGN and GDI assets respectively.2)Significant items:2015 relates to a net gain realised from the sale of APAs investment in AGN as well as the successful recovery of fees paid by Hastings Diversified Utilities Fund to Hastings Funds Management Limited.3)Operating cash flow=net cash from operations

172、after interest and tax payments.4)Distribution payout ratio=total distribution payments as a percentage of normalised operating cash flow.directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES14APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST

173、 AND ITS CONTROLLED ENTITIES7.Business Segment Performances and Operational ReviewStatutory reported revenue and EBITDA performance of APAs business segments is set out in the table below.Changes 30 June 2016 30 June 2015$000$000$000%Revenue(continuing businesses)Energy Infrastructure East Coast Gri

174、d:Queensland 939,963 388,916 551,047 141.7%East Coast Grid:NSW 143,427 137,998 5,429 3.9%East Coast Grid:Victoria 152,991 163,592(10,601)(6.5%)East Coast Grid:South Australia 2,871 2,725 146 5.4%Northern Territory 28,843 27,877 966 3.5%Western Australia 260,481 265,972(5,491)(2.1%)Energy Infrastruct

175、ure total 1,528,576 987,080 541,496 54.9%Asset Management 95,430 85,056 10,374 12.2%Energy Investments 28,271 21,784 6,487 29.8%Total segment revenue 1,652,277 1,093,920 558,357 51.0%Pass-through revenue 438,330 434,382 3,948 0.9%Unallocated revenue 1 3,697 24,322(20,625)(84.8%)Divested business 2 9

176、91(991)(100.0%)Total revenue 2,094,304 1,553,615 540,689 34.8%EBITDA(continuing businesses)Energy Infrastructure East Coast Grid:Queensland 855,753 340,131 515,622 151.6%East Coast Grid:NSW 121,709 120,808 901 0.7%East Coast Grid:Victoria 120,583 130,170(9,587)(7.4%)East Coast Grid:South Australia 2

177、,536 1,940 596 30.7%Northern Territory 17,460 17,954(494)(2.8%)Western Australia 217,558 212,604 4,954 2.3%Energy Infrastructure total 1,335,599 823,607 511,992 62.2%Asset Management 53,858 49,448 4,410 8.9%Energy Investments 27,796 21,783 6,012 27.6%Corporate costs(86,710)(73,579)(13,131)17.8%Total

178、 segment EBITDA 1,330,543 821,259 509,284 62.0%Divested business 2 991(991)(100.0%)Total EBITDA before significant items 1,330,543 822,250 508,293 61.8%Significant items 3 447,240(447,240)(100.0%)Total EBITDA 1,330,543 1,269,490 61,053 4.8%Notes:Numbers in the table may not add up due to rounding.1)

179、Interest income is not included in calculation of EBITDA,but nets off against interest expense in calculating net interest cost.2)Investment in Australian Gas Networks Limited(“AGN”)sold in August 2014.3)Significant items:For FY2015,these relate to net proceeds realised from the sale of APAs investm

180、ent in AGN as well as successful recovery of fees paid by Hastings Diversified Utilities Fund to Hastings Funds Management Limited.APAs financial performance during the financial year reflects solid operations and continued investment in our assets.Total segment EBITDA,which is earnings from APAs co

181、ntinuing businesses,increased by$509.3 million,or 62.0%,to$1,330.5 million,over FY2015 figure of$821.3 million).APA derives its revenue through a mix of regulated revenue,long-term negotiated revenue contracts,asset management fees and investment earnings.Earnings are underpinned by solid cash flows

182、 generated from high quality,geographically diversified assets and a portfolio of highly creditworthy customers.15APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES7.1 Energy InfrastructureThe Energy Infrastructure segment includes the interc

183、onnected energy infrastructure footprint across the mainland of Australia and includes gas transmission,gas compression and storage assets and a number of other wholly owned energy infrastructure assets.During the financial year,the Ethane Pipeline and the Diamantina and Leichhardt Power Stations we

184、re transferred into this segment from the Energy Investment segment,as APA gained full ownership of these assets.These acquisitions were in line with APAs strategy to continue to invest in energy infrastructure that is underpinned by long term contracts from highly creditworthy counterparties.This s

185、egment contributed 92.5%of group revenue(for continuing businesses,excluding pass-through)and 94.2%of group EBITDA(for continuing businesses and before corporate costs)during the financial year.Revenue(excluding pass-through revenue)was$1,528.6 million,an increase of 54.9%on the previous year(FY2015

186、:$987.1 million).EBITDA(for continuing businesses,before corporate costs)increased by 62.2%on the previous year to$1,335.6 million(FY2015:$823.6 million).The majority of revenues in the Energy Infrastructure segment is derived from either regulatory arrangements or long term capacity-based contracts

187、.Regulatory arrangements on regulated assets are reviewed every five years.A national regulatory regime includes mechanisms for regulatory pricing and is encapsulated in the National Gas Law and National Gas Rules.The economic regulation aspects of the regime apply to most gas distribution networks

188、and a number of gas transmission pipelines inAustralia.The regime provides for two forms of regulation based on a pipelines relative market power full regulation and light regulation.For assets under full regulation,the regulator approves price and other terms of access for standard(“reference”)serv

189、ices as part of an access arrangement process,such that the asset owner has a reasonable opportunity to recover at least the efficient costs of owning and operating the asset to provide the reference services.Access arrangement periods usually run for five years.For assets under light regulation,con

190、tractual terms(including price)are negotiated between the service provider and customer with recourse to arbitration by the regulator in the absence of agreement.Contracted revenues are sourced from unregulated assets and assets under light regulation as well as assets under full regulation.Contract

191、s generally entitle customers to capacity reservation,with the majority of the revenue fixed over the term of the relevant contract.There is typically a small portion of the contract subject to throughput volume.The split between capacity charge and throughput charge differs between contracts and ge

192、nerally ranges from 85%/15%to100%/0%.During the financial year,75%of Energy Infrastructure revenue(excluding pass-through)was from capacity reservation charges from term contracts,6%from other contracted fixed revenues and 7%from throughput charges and other variable components.Given the dynamic eas

193、t coast gas market,there were additional revenues from provision of flexible short term services,accounting for around 2.0%.The portion of APAs revenue that is regulated has decreased to about 10%of FY2016 Energy Infrastructure revenue.Capacity charge revenue:75%Regulated revenue:10%Throughput charg

194、e&other variable revenue:7%Other contracted fixed revenue:6%Flexible short term services:2.0%Other:0.3%FY2016 REVENUES BY CONTRACT TYPEAPA 1 PIPELINES BY REGULATION TYPEFull regulation pipelinesLight regulation pipelinesNot regulated pipelines1)Owned and/or operated by APAThe increase in FY2016 earn

195、ings for Energy Infrastructure was primarily due to the full year contribution of the Wallumbilla Gladstone Pipeline(acquired June 2015),approximately seven months contribution from the Eastern Goldfields Pipeline(commissioned November 2015),three months EBITDA contribution from the Diamantina and L

196、eichhardt Power Stations(acquired March 2016)and approximately two and a half months EBITDA contribution from the Ethane Pipeline(acquisition completed June 2016)as well as contributions from various other expansions that commissioned during theperiod.16APA Group Annual Report 2016directors report.c

197、ontinued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESENERGY INFRASTRUCTURE REVENUE BY STATE ENERGY INFRASTRUCTURE EBITDA BY STATEFY12FY13FY14FY15FY16QLDNSWVICSANTWAEBITDA margin(RHS)75%80%85%90%02004006008001,0001,200A$1,400m FY12FY13FY14FY15FY16QLDNSWVICSANTWA02004006008001,0001,200A$1,400

198、mENERGY INFRASTRUCTURE EBITDA BY PIPELINEFY16FY15FY14FY13FY12A$m 0200400600800100012001400Wallumbilla Gladstone Pipeline South West Queensland Pipeline Roma Brisbane Pipeline Carpentaria Gas Pipeline Other Qld assets Moomba Sydney Pipeline Victorian Transmission System SESA Pipeline Amadeus Gas Pipe

199、line Goldfields Gas Pipeline Eastern Goldfields Pipeline Emu Downs wind farm Pilbara Pipeline System Mondarra gas storage Other WA Note:The charts above exclude discontinued operations previously accounted for within Energy Infrastructure,including earnings from Allgas Networks and Moomba toAdelaide

200、 Pipeline.APA manages its counterparty risk in a variety of ways.One aspect is to consider customers credit ratings.During FY2016,around 94%of revenue was received from investment grade counterparties.Diversification of customer base is another during FY2016,56%from energy sector customers(includes

201、BG Group,on the Wallumbilla Gladstone Pipeline in particular);29%of revenue was from customers in the utility sector;12%from resources sector customers;and 3%from industrial customers.Revenues by customer industry segment changed from the majority sourced from utility customers in FY2015 to the majo

202、rity coming from energy customers in FY2016,reflecting the impact of the long term contracts on the Wallumbilla Gladstone Pipeline.FY2016 ENERGY INFRASTRUCTURE REVENUES FY2016 ENERGY INFRASTRUCTURE REVENUESBY COUNTERPARTY CREDIT RATING BY CUSTOMER INDUSTRY SEGMENTA-rated or better:51%BBB&BBB+rated:2

203、2%BBB-rated:21%Not rated:3%Sub-investment grade:3%Energy:56%Utility:29%Resources:12%Industrial:3%17APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESAPAs Integrated Operations Centre(“IOC”)in Brisbane is now the operations control centre for

204、APAs transmission pipeline assets across the country.Centralised control at APAs IOC,which houses a multi-disciplinary team of pipeline controllers,engineers,technicians and commercial operations specialists,has enabled more agile implementation of customer needs and allows APA to ensure that gas is

205、 moved to where it is required by customers in the most timely and efficient manner.The IOC,coupled with our unique customer management system,APA Grid,allows APA to offer innovative services to customers.Supporting LNG plant swingsOne of the LNG projects wanted to borrow a sizeable amount of gas,th

206、en repay that loan as well as park an additional quantity of gas over the following week.APAs team at the IOC reviewed the request in light of:conditions at the time;forecast operational conditions;other customer requirements during this period;and physical limitations of the APA Grid.This facilitat

207、ed avoidance of producers well turndowns,unnecessary flaring and meeting producers productiontargets.East Coast Grid+Northern TerritoryAPAs 7,500 plus kilometre integrated pipeline grid on the east coast of Australia has the ability to transport gas seamlessly from multiple gas production facilities

208、 to gas users across four states and the ACT,as well as to the export LNG market which has developed out of Gladstone.With the proposed construction of the Northern Gas Pipeline,APAs Northern Territory assets will in the future be connected to the East Coast Grid.During FY2016,APA purchased the rema

209、ining 50%stake in the Diamantina and Leichhardt Power Stations,adding further complementary assets to the East Coast Grid that will continue to enhance our service offering to our customers on the east coast of Australia.Seamless and Flexible Services ensure continuity of energy supplyIn FY2016,the

210、South West Queensland Pipeline changed flow direction regularly to meet changing demand patterns in southern states,driven largely by weather and electricity demand.During the recent South Australian electricity crisis,APA helped facilitate the transportation of additional gas from the northern mark

211、ets into the South Australia market to ensure gas was available for power generation.In one instance,within 24 hours of receiving an initial inquiry,APA had concluded the commercial arrangements,implemented changes in the customer management system and was physically delivering gas for the customer.

212、In addition,APAs Integrated Operations Centre anticipated an increased demand for gas in NSW and the Victorian markets and configured the pipeline grid to ensure continuity of gas supply.Bi-directional and multi-asset services across our interconnected East Coast Grid have meant that APA is now a“on

213、e-stop shop”for many energy producers and users.Customers have the flexibility to access 40 receipt points and approximately 100 delivery points across the East Coast Grid.APA has continued to invest in pipeline assets and services,commencing hub services at the Moomba gas hub,in addition tothe Wall

214、umbilla hub,and providing enhanced information transparency to the market via APAs website.FY2016 saw a material increase in earnings from assets in Queensland.This was largely driven by acquisitions(full year benefit from Wallumbilla Gladstone Pipeline and three months contribution from Diamantina

215、and Leichhardt Power Stations).This was partially offset by a slight reduction in volumes on the Carpentaria Gas Pipeline due to reduced deliveries to power generators off the pipeline,given that the Diamantina Power Station is a more efficient power station than the previous incumbent,Mica Creek.Co

216、ntracts from phase 1 of the Victoria Northern Interconnect expansion project contributed for the full financial year.Revenue generated from these contracts was recorded across NSW and Victoria.Revenue and EBITDA in Victoria decreased in FY2016 compared to last year,partially due to weaker volumes an

217、d non-recurrence of a one-off item duringFY2015.APA also purchased the remaining 94%of the Ethane Pipeline Income Fund that it did not own during FY2016.The Ethane Pipeline now forms part of the Energy Infrastructure segment.During the financial year,APAs assets in the Northern Territory continued t

218、o perform to expectations.CRPCGPfCurtis LNG acilitiesWGPBWPSWQPRBPIOCCWPMSPPark+loan services18APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESWestern AustraliaIn Western Australia,APAs assets serve a variety of customers in the resources,i

219、ndustrial and utility sectors,mainly in the Perth,Pilbara and Goldfields regions.EBITDA from APAs western assets for the financial year was up slightly by 2.3%compared with the previous correspondingperiod.Connecting Australia to reliable energyAPAs new 293km Eastern Goldfields Pipeline enables deli

220、very of energy to the remote mining area of eastern Goldfields,365 days of the year.Switching from trucked in diesel to piped natural gas as the main fuel source for the AngloAshanti mines,means there are nearly 1,500 less annual diesel transportation movements to Tropicana and Sunrise Dam from the

221、west coast of Western Australia annually.This means less exposure to fuel price volatility,improved safety for the mine workers,longer term fuel reliability for the mines and lower greenhouse gas emissions.The Eastern Goldfields Pipeline(“EGP”),which was commissioned in November 2015,contributed sev

222、en months earnings from gas transportation agreements with AngloGold Ashanti.A new agreement to transport gas to the Gold Fields Limited owned Granny Smith gold mine commenced in April 2016 and contributed three months earnings.With over 1,800km of pipeline infrastructure able to securely and reliab

223、ly transport gas to the Goldfields mining region,APA continues to work with interested parties on other opportunities in the region.Further,earnings from the Mondarra Gas Storage Facility increased due to additional capacity generated through an injection/withdrawal well enhancement project that was

224、 contracted to an existing customer.There continues to be interest from the market for gas storage services,which enables customers to manage their gas portfolios effectively.These increases were partially offset by a reduction in revenue from the Goldfields Gas Pipeline(“GGP”)for the current period

225、,reflecting tariff reductions contained in the final decision by the Economic Regulation Authority(“ERA”)on the access arrangement for the GGP that was announced on 30 June 2016.Whilst cash flow was not impacted during the year due to the timing of the final decision,the ultimate outcome has been pr

226、ovided for in the FY2016 results.Refer to section 10 for morebackground.Storage capacity at APAs Mondarra Gas Storage Facility was increased during FY2016 with the completion of a new injection/withdrawal well.19APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS

227、 CONTROLLED ENTITIES7.2 Asset ManagementAPA provides asset management and operational services to the majority of its energy investments and to a number of third parties.Its main customers are Australian Gas Networks Limited(“AGN”),Energy Infrastructure Investments and GDI(EII).Asset management serv

228、ices are provided to these customers under long term contracts.Revenue(excluding pass-through revenue)from asset management services increased by$10.4 million or 12.2%to$95.4million(FY2015:$85.1 million)and EBITDA(for continuing businesses,excluding corporate costs)increased by$4.4million or8.9%to$5

229、3.9 million(FY2015:$49.4 million).ASSET MANAGEMENT REVENUE ASSET MANAGEMENT EBITDAA$100m755025One-off Customer Contributions0Underlying Asset Management RevenueFY12FY13FY14FY15FY16 A$80m604020FY12One-off Customer ContributionsFY13FY14FY15FY160Underlying Asset Management EBITDAThis increase in revenu

230、e and EBITDA is due to organic growth,reflecting increases in connections and asset management fees.This was partially offset by low gas volumes in the second half of FY2016,mainly due to a milder winter,which affects management fees earnt.The gas distribution businesses of the bulk of AGN and GDI h

231、ave seen solid connection growth through continued investment in new housing estates and high rise apartment developments as natural gas continues to be a fuel of choice for cooking,hot water and heating in these markets.CUSTOMER CONTRIBUTIONSFY12Average$10m p.a.FY13FY14FY15FY16020A$mCustomer contri

232、butions were in-line with the long term average of approximately$10 million per annum.APA continues toexpect annual swings in customer contributions,as these are driven by customers work programmes and requirements.APA sold its 33.05%stake in AGN in August 2014,however,the operating and maintenance

233、agreements remain on foot until2027.STATISTICSNetwork assets owned and/or operated by APAGas consumersNew connections 33,478Total connections 1,335,534Natural gas distribution networksNew pipelines 453kmReplacement pipelines 416kmTotal pipelines managed 28,424kmGas transported 110.5PJSolid residenti

234、al construction continues to benefit gas connection numbers.APA has secured penetration of 99%for new homes built in Victoria,and has an arrangement to connect 37k new homes in the Merrifield area of Melbournes northern growth corridor over the next 20 years.FY13FY14FY15FY161.21.3GAS CONSUMER CONNEC

235、TIONS GROWTH ON APA OPERATED GAS NETWORK1.4m20APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES7.3 Energy InvestmentsAPA has interests in a number of complementary energy investments across Australia.Asset details&APA servicesPartnersAsset a

236、nd ownership interestsRetail Employers Superannuation TrustRetail Employers Superannuation TrustInfrastructure Capital GroupOsaka GasMarubeni CorporationDeutsche AWMMarubeni Corporation Osaka Gas687 km gas pipeline from Iona and Port Campbell in Victoria to Adelaide83 km gas pipeline connecting the

237、Otway Gas Plant to the Mortlake Power Station132 MW North Brown Hill wind farm in South Australia3,355 km Allgas gas distribution network inQueensland with 99,699 connectionsGas-fired power generation 74 MWGas processing facilities 41 TJ/dayElectricity transmission cables 243 kmThree gas pipelines t

238、otaling 786 kmMAINTENANCEMAINTENANCECORPORATE SUPPORTCORPORATE SUPPORTCORPORATE SUPPORT50%50%20.2%20%19.9%Energy Infrastructure InvestmentsEII2GDI(EII)Sea Gas PipelineMortlake Gas PipelineOPERATIONAL MANAGEMENTOPERATIONAL MANAGEMENTAPAs ability to manage these investments and provide operational and

239、/or corporate support services gives it flexibility in the way it grows the business and harnesses expertise in-house.It provides options depending on opportunities available,energy market conditions and capital markets environment.During the year,two of the assets that were previously managed under

240、 Energy Investments were acquired in full and transferred to Energy Infrastructure as wholly owned assets of APA.On 31 March 2016,APA completed the acquisition of the 50%interest in Diamantina and Leichhardt Power Stations that it did not already own.On 16 June 2016,APA completed the acquisition of

241、the 94%interest in the Ethane Pipeline Income Trust that it did not already own,by way of an off-market takeover.Both acquisitions fit with APAs growth strategy to build out its energy infrastructure business and to leverage in-house asset management,development and operational capabilities.Both of

242、these transactions are earnings per security accretive and make sense to APA,in light of market conditions and strategic benefit to APA.ENERGY INVESTMENT REVENUE&EBITDAA$80m604020FY12Divested&transferred investmentsFY13FY14FY15FY160Continuing investmentsIn August 2016,APA acquired a 50%interest in t

243、he Mortlake Pipeline via a stake in the newly established SEA Gas(Mortlake)Partnership.The pipeline was commissioned in January 2011,and provides gas to the 550MW open cycle gas turbines at Mortlake Power Station.SEA Gas(Mortlake)Partnership and Origin have entered into long term contracts for the p

244、rovision of transmission and storage services on the pipeline.In terms of numbers,EBITDA from continuing investments increased by 4.8%to$22.8 million(FY2015:$21.8 million).21APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES7.4 Corporate Cost

245、sCorporate costs for the financial year increased by$13.3 million over the previous corresponding period to$86.7 million(FY2015:$73.6 million).This increase was primarily due to a number of one-off items including costs related to APAs involvement in the Northern Territorys NEGI process,APAs unsucce

246、ssful bid for the Iona Gas Storage Facility,costs incurred in relation to a number of ongoing governmental enquiries into the gas market(refer below to Section 10)as well as an externally facilitated strategy and planning review undertaken during the year.CORPORATE COSTSA$80m604020FY12FY13FY14FY15FY

247、1608.Capital and Investment ExpenditureCapital and investment expenditure for FY2016 totalled$673.6 million.Of this,investment expenditure of$339.9 million related to the acquisitions during the year of Diamantina and Leichhardt Power Stations and the Ethane Pipeline,which have been described above.

248、Total capital expenditure(including stay-in-business capital expenditure but excluding acquisitions and other investing cash flows)for FY2016 was$333.7 million compared with$396.3 million last year.Growth project expenditure of$281.0 million(FY2015:$343.1 million)was related to the following project

249、s during the year:construction of the Eastern Goldfields Pipeline in Western Australia,which was completed during the financial year ahead of schedule;completion of a further connection to Granny Smith gold mine on the Eastern Goldfields Pipeline in February 2016;completion of bi-directional project

250、s on Moomba Sydney Pipeline and Roma Brisbane Pipeline,with the main pipelines onAPAs East Coast Grid now all bi-directional;continued works on the Victorian-Northern Interconnect expansion project,which will,when complete,expand the interconnect to 200 TJ/day in a northerly direction;and completion

251、 of an injection/withdrawal enhancement project at the Mondarra Gas Storage Facility,on the back of an extension and additional contract with an existing customer.APAs growth capital expenditure continues to generally be either fully underwritten through long-term contractual arrangements or have re

252、gulatory approval through a relevant access arrangement.Capital and investment expenditure for the financial year is detailed in the table below.Capital and investment expenditure 1Description of major projects30 June 2016$million30 June 2015$millionGrowth expenditureRegulatedVNI looping and compres

253、sion;various upgrades130.9136.1Non-regulated QueenslandRBP bi-directional flow,SWQP easternhaul,Wallumbilla compression14.0104.4 New South WalesCulcairn compressor,MSP reverse flow4.812.1 Western AustraliaEGP,Mondarra additional well,Granny Smith metering97.664.2 Other33.729.0Sub-total unregulated c

254、apex150.1209.7Total growth capex281.0345.8Stay-in business capex52.750.6Total capital expenditure333.7396.3AcquisitionsWGP stamp duty,DPS,EPX340.35,866.8Other investing cash flowsProceeds from sale of PP&E(0.4)21.2Total investment expenditure339.95,888.0Total capital and investment expenditure673.66

255、,284.3Notes:Numbers in the table may not add up due to rounding.1)The capital expenditure shown in this table represents actual cash payments as disclosed in the cash flow statement,and excludes accruals brought forward from the prior period and carried forward to next period.22APA Group Annual Repo

256、rt 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESAPAs growth strategy will continue to be considered with the same principles and criteria that APA has always adhered to:ensure appropriate funding and capital structure;entering into contracts with strong counter

257、parties;maintain appropriate risk structure;and leverage in-house operational expertise.APA will also continue to assess the appropriateness of international opportunities.9.Financing Activities9.1 Capital ManagementAs at 30 June 2016,APA had 1,114,307,369 securities on issue.This was unchanged from

258、 30 June 2015.During the financial year,APA extended the term to maturity on its syndicated and bilateral bank facilities by between 12and 24 months and entered into five new bilateral bank facilities for terms of between two and five years providing$350 million of further committed debt funding.APA

259、 repaid the$185.6 million(US$122.0 million)of US Private Placement Notes that matured in September 2015.This has resulted in the reduction of the proportion of fixed or hedged interest rate exposures within APAs drawn debt portfolio,which is outlined further below.APAs debt portfolio has a broad spr

260、ead of maturities extending out to FY2035,with an average maturity of drawn debt of 7.4 years at 30 June 2016.APAs gearing 1 of 66.4%at 30 June 2016 was up on the 63.4%at 30 June 2015 due primarily to the acquisition of the Ethane Pipeline and the Diamantina and Leichhardt Power Stations.APA remains

261、 well positioned to fund its planned organic growth activities from available cash and committed resources.APA DEBT MATURITY PROFILE AND DIVERSITY OF FUNDING SOURCESFY17FY18FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35Bank borrowingsUS Private Placement NotesPublic bonds swapp

262、ed into AUD(AUD,CAD,JPY,Sterling,US144A)Public bonds swapped into USD(Euro,Sterling,US144A)3First call date 60yrSubordinated Notes05001,0001,500A$2,000m(2)Notes:1)For the purpose of the calculation,drawn debt that has been kept in USD(rather than AUD)has been nominally exchanged at AUD/USD exchange

263、rates of0.7772 for Euro and GBP MTN issuances and 0.7879 for US144A notes at respective inception dates.2)USPP notes of$86m matured and were repaid in July2016.3)USD denominated obligations translated to AUD at the prevailing rate at inception(USD144A AUD/USD=0.7879,EMTN&Sterling AUD/USD=0.7772).CAP

264、ITAL AND INVESTMENT EXPENDITUREFY12FY13FY14FY156,284.4FY16295.5728.2527.8673.6SIB capexGrowth capexAcquisitions&other investment cash flows0200400600800A$1,000mAs mentioned in section 5.2 previously,APA conducted an externally facilitated strategy and planning review during FY2016 and identified sig

265、nificant and ongoing opportunities for growth over the longer term.As part of this review,APA has identified around$1.5 billion of organic opportunities in the near term,across pipeline extensions and expansions(circa$700 million),expansion of its renewables and generation foot print(circa$500 milli

266、on)and expansion of its midstream asset foot print(circa$300 million).23APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESAs at 30 June 2016,APA had over$754 million in cash and committed undrawn facilities available to meet the continued cap

267、ital growth needs of the business.APA has a prudent treasury policy which requires conservative levels of hedging of interest rate exposures to minimise the potential impacts from adverse movements in interest rates.Other than noted below,all interest rate and foreign currency exposures on debt rais

268、ed in foreign currencies have been hedged.The majority of the revenues to be received over the next 20 years from the foundation contracts on the Wallumbilla Gladstone Pipeline will be received in USD.The US$3.7 billion of debt raised to fund that acquisition is being managed as a“designated hedge”f

269、or these revenues and therefore has been retained in USD.Net USD cash flow(after servicing the USD interest costs)that is not part of that“designated relationship”will continue to be hedged into AUD on a rolling basis for an appropriate period of time,in-line with APAs treasury policy.To date,the fo

270、llowing net USD cash flow hedging has beenundertaken:Period Average forward USD/AUD exchange rateFY2017 0.7381FY2018 0.72821H FY2019(to Dec 2018)0.6716A large portion of the net revenue from March 2019 is in that designated hedge relationship with the USD debt and as such,when that revenue is receiv

271、able,will be recognised in the P&L at an average rate of around 0.78.APA also enters into interest rate hedges for a proportion of the interest rate exposure on its floating rate borrowings.As at 30 June 2016,86.5%(30 June 2015:94.0%)of interest obligations on gross borrowings was either hedged into

272、 or issued at fixed interest rates for varying periods extending out to 2035.9.2 Borrowings and finance costsAs at 30 June 2016,APA had borrowings of$9,037.3 million($8,642.8 million at 30 June 2015)from a mix of syndicated and bilateral bank debt facilities,US Private Placement Notes,Medium Term No

273、tes in several currencies,Australian Medium Term Notes,United States 144A Notes and APA Group Subordinated Notes.Net finance costs increased by$183.5 million,or 56.6%,to$507.7 million(FY2015:$324.2 million).The increase is primarily due to having the additional US$3.7 billion of debt issued in March

274、 2015 to support the acquisition of the Wallumbilla Gladstone Pipeline for the full 2016 financial year.The average interest rate(including credit margins)1 applying to drawn debt was 5.64%for the current period(FY2015:6.76%).APAs interest cover ratio for the current period was 2.6 times 2(June 2015

275、:2.6 times).This remains well in excess of its debt covenant default ratio of 1.1 times and distribution lock up ratio of 1.3 times.9.3 Credit ratingsAPT Pipelines Limited,the borrowing entity of APA,maintained the following two investment grade credit ratings during this financial year:BBB long-ter

276、m corporate credit rating(outlook Stable)assigned by Standard&Poors(S&P)in June 2009,and last confirmed on 18 March 2016;and Baa2 long-term corporate credit rating(outlook Stable)assigned by Moodys Investors Service(Moodys)in April 2010,and last confirmed on 15 April 2016.9.4 Income taxIncome tax ex

277、pense for the financial year of$122.5 million results in an effective income tax rate of 40.6%,compared to 24.0%for the previous corresponding period(statutory basis)and 28.2%for the previous corresponding period on anormalised basis.The increase is due to the significant amortisation charges relati

278、ng to contract intangibles acquired withthe Wallumbilla Gladstone pipeline which are not deductible for tax purposes.After utilisation of all available group tax losses and partial utilisation of available transferred tax losses,an income tax provision of$13.8 million has been recognised as at 30 Ju

279、ne 2016.APA expects to pay cash tax of$13.8 million in February2017.APA has provided a Tax Transparency Report which includes a reconciliation of profit to income tax payable on APAs website at https:/.au/investors/my-securities/tax-information/.1)For the purpose of the calculation,drawn debt that h

280、as been kept in USD(rather than AUD)has been nominally exchanged at AUD/USD exchange rates of 0.7772 for Euro and GBP MTN issuances and 0.7879 for US144A notes at respective inception dates.2)For the calculation of interest cover,significant items are excluded from the EBITDA used.24APA Group Annual

281、 Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES9.5 DistributionsDistributions paid to securityholders during the financial year were:Final FY2015 distribution Interim FY2016 distribution paid 16 September 2015 paid 16 March 2016 Cents per Total distributi

282、on Cents per Total distribution security$000 security$000APT profit distribution 18.12 201,945 15.12 168,429APT capital distribution APTIT profit distribution 2.38 26,488 3.88 43,290APTIT capital distribution Total 20.50 228,433 19.00 211,719On 24 August 2016,the Directors declared a final distribut

283、ion for APA for the financial year of 22.5 cents per security which is payable on 16 September 2016 and will comprise the following components:Final FY2016 distribution payable 16 September 2016 Cents per Total distribution security$000APT profit distribution 16.34 182,063APT capital distribution 1.

284、78 19,869APTIT profit distribution 3.75 41,811APTIT capital distribution 0.63 6,976Total 22.50 250,719As a result,the total distribution applicable to the year ended 30 June 2016 total 41.5 cents per security,a 9.2%increase over the total distribution of 38.0 cents per security applicable to the yea

285、r ended 30 June 2015.The Distribution Reinvestment Plan remains suspended.9.6 Total securityholder returnAPAs total securityholder return for the financial year,which accounts for distributions paid plus the capital appreciation of APAs security price and assumes the reinvestment of distributions at

286、 the declared time,was 16.7%,compared with negative 0.5%for ASX200 index.1APAs total securityholder return since listing in June 2000 on the ASX,is 1,550%,a compound annual growth rate of 19.1%.APA TOTAL SECURITYHOLDER RETURNS SINCE LISTING(JUNE 2000)TO 30 JUNE 2016APA total securityholder returnUti

287、lities Accumulation IndexS&P/ASX 200 Accumulation IndexJUN 00JUN 01JUN 02JUN 03JUN 04JUN 04JUN 06JUN 07JUN 08JUN 09JUN 10JUN 11JUN 12JUN 13JUN 14JUN 16JUN 1504008001,2001,60025APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIES9.7 Guidance for

288、 2017 financial yearBased on current operating plans and available information,APA expects EBITDA for the full year to 30 June 2017 to be in a range of$1,425 million to$1,445 million.This represents an increase of approximately 7%to 8.5%on the 2016 financial year,on a normalised,continuing businesse

289、s basis.APA has entered into forward exchange contracts for FY2017,for the net USD cashflow from the gas transportation agreements for the Wallumbilla Gladstone Pipeline(“WGP”),after servicing USD denominated debt.In forecasting the AUD equivalent EBITDA contribution from WGP,the forward exchange ra

290、tes for these hedged revenues have been used.Net interest cost is expected to be in a range of$510 million to$520 million.Distributions per security for the 2017 financial year are expected to be in the order of 43.5 cents per security,prior to the benefit of any franking credits that may arise as a

291、 result of the filing of the FY2016 tax return.As per current APA distribution policies,all distributions will be fully covered by operating cash flows.FY2017 guidance FY2016 actual ChangeEBITDA from continuing businesses($millions)1,425 to 1,445 1,330.5 94.5 to 114.5Net interest cost($millions)510

292、to 520 507.7 2.3 to 12.3Total distribution(cents per security)In the order of 41.5 cents 2.0 cents 43.5 cents10.Regulatory MattersRegulatory resetsThe diagram below outlines the scheduled regulatory reset dates for pipelines owned and operated by APA.During FY2016,approximately 10%of APAs Energy Inf

293、rastructure revenues were regulated revenue.REGULATORY RESET SCHEDULERoma Brisbane PipelineCentral Ranges PipelineVictorian Transmission SystemCentral Ranges NetworkGoldfields Gas PipelineAmadeus Gas PipelineCurrent regulatory periodNext regulatory period201620172018201920202021Key regulatory matter

294、s addressed during the year included:Goldfields Gas Pipeline access arrangementIn June 2016,the Western Australian Economic Regulation Authority(“ERA”)issued a final decision on proposed revisions to the access arrangement for the Goldfields Gas Pipeline(“GGP”),which APA had submitted for approval i

295、n August 2014.The final decision by the ERA results in a reduction in the reference tariff and amendments to the access terms and conditions.The ERA proposed reduction in tariff stems mainly from:a reduction in the rate of return;a change in methodology to calculate depreciation;a change in the meth

296、odology to allocate certain operating costs between regulated and unregulated services;and a clawback of revenues arising from higher tariffs collected from 1 January 2015 to 30 June 2016 due to the ERAs 18 month delay in reaching a decision.The tariffs determined by the ERA are payable in relation

297、to approximately 20%of contracted shipper services.The remainder of contracted services on the Goldfields Gas Pipeline(80%)are payable as per negotiated terms.Amadeus Gas Pipeline access arrangementThe Australian Energy Regulator(“AER”)issued its final decision for the Amadeus Gas Access Arrangement

298、 on 26 May 2016 to apply from 1 July 2016.The final decision has had minimal impact on APAs revenue as the vast majority of services are provided at rates determined under contract with the main shipper,Power and Water Corporation.1)Figures quoted are sourced from IRESS and measured as at 30 June 20

299、16.26APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESGas Policy developmentsThe eastern Australian gas market has been subject to ongoing unprecedented change with the recontracting of expiring long term gas supply agreements and the commen

300、cement of production at the three LNG facilities at Gladstone.Numerous governmental reviews and inquiries have considered appropriate policy settings.APA has been an active participant in these reviews,highlighting the significant contribution through its portfolio of pipeline assets and responsive

301、customer services that APA has made to the development of the gas market.In August 2016,the Council of Australian Governments(“COAG”)Energy Council announced that it had agreed to a domestic energy market reform package to improve gas supply and market design,based on reports from the Australian Ene

302、rgy Market Commission(“AEMC”)and the Australian Competition&Consumer Commissions(“ACCC”).The reforms will be led by a newly formed Gas Market Reform Group,and will include:better information for trading in the market;the creation of trading hubs in North and South;easier access to transport infrastr

303、ucture;better pricing information;and encouraging more gas supply and more gas suppliers,taking account of each jurisdictions circumstance.COAG has also assigned the Gas Market Reform Group to examine and lead the consultation process to consider the ACCCs recommendation for a change to the regulato

304、ry coverage test for gas pipelines.APA will remain actively engaged as these proposed reforms enter the detailed implementation stage.11.Health,Safety and Environment11.1 Health and safety reportingThis financial year was the first full year of using APAs new incident reporting platform.This platfor

305、m has provided improved access,analysis and rigour around the reporting of incidents and injuries across APA and its contractors.This has been evidenced by an 18%increase in the number of incidents reported this year compared with last year and supported by audit findings that APA has a good reporti

306、ng culture.The Lost Time Injury Frequency Rate(“LTIFR”)for APA was 1.06(for employees and contractors)for the financial year,up from 0.64 in the last financial year.There were four employee and two contractor lost time injuries during the financial year.The Total Reportable Injury Frequency Rate(TRI

307、FR)for APA was 10.41(for employees and contractors combined)in FY2016,an increase of 2.3 from the last financial year.Frequency rates have been impacted by a 10%drop in hours worked this financial year due largely to a reduction in the number of project-based activities compared with the historic hi

308、ghs in the previous year.TOTAL REPORTABLE INJURY FREQUENCY RATE(TRIFR)LOST TIME INJURY FREQUENCY RATE(LTIFR)80604020FY13FY14FY15FY16065.8 34.3 8.11 10.41 FY13FY14FY15FY1601232.1 0.8 0.64 1.06 Note:TRIFR is measured as the number of lost time and medically treated injuries sustained per million hours

309、 worked.Data includes both employees andcontractors.Note:LTIFR is measured as the number of lost time injuries per million hours worked.Data from FY14 includes both employees and contractors.Prior to that,employee data only.APA continues to target being a zero harm workplace for its employees,contra

310、ctors and the broader communities in which it operates.Whilst some injury performance targets this year were not achieved,the results are in line with overall improving trends and reporting culture.In addition to this,the performance in all lead safety indicators was positive,confirming an appropria

311、te level of activity and focus on key risks and controls.The Strategic Improvement Plan and initiatives for FY2016 have been achieved during the year.Focus continued on driving with the SafeDrive+program,developing and implementing education and awareness programs targeting specific risks such as sp

312、eeding and fatigue.This program has seen a reduction in vehicle incidents.Furthermore,“In Vehicle Monitoring Systems”were installed in more than 270 vehicles,enabling tracking and monitoring of driver safety.These systems are already realising the benefits of improved driver safety.A highlight this

313、year was the results from an independent Health and Safety Audit Program conducted across the business that resulted in a 95%compliance rating with no major non-conformance findings.27APA Group Annual Report 2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESSafe Dri

314、ving at APAAPAs 750 motor vehicles cover more than 17 million kilometres a year.Thats a lot of driving that exposes APA drivers and their passengers to significant risk.Although we know driving to be a high-risk activity,and have identified it as one of our Fatal Risks,we needed the tools to help us

315、 with our Risk,Control,Assure approach to driving thats where SafeDrive+comes in.SafeDrive+is a suite of 12 initiatives that support and guide our business driving practices.Some of the initiatives were already in place in some parts of APA;others were ready to be rolled out while others will be rol

316、led out as they are fully developed.SafeDrive+initiatives together address the requirements of our Risk,Control,Assure approach and apply to the majority of our driving situations.They will help APAs employees and contractors stay safe on theroad.Some of the SafeDrive+initiatives apply to all APA dr

317、ivers,while others apply to those who drive in particular situations one even applies to passengers.One key feature has been the introduction of the in vehicle monitoring systems(IVMS).IVMS is a GPS enabled device which is installed in vehicles to monitor their current location.It triggers lifesavin

318、g alerts based on a vehicles whereabouts and thereby reduces risks for remote and rural solo workers.With this new technology the Integrated Operations Centre and HSE Managers can receive immediate alerts which increase our ability to respond more quickly to emergency events,as well as improve our o

319、verall monitoring.In FY2017,a new three year Health,Safety and Environmental(HSE)Strategic Improvement Plan has been launched,building on the previous plan.For further information on APAs health and safety initiatives,please refer to the Sustainability Report(page S8 to S9),whichforms part of this r

320、eport.11.2 Environmental regulationsAll pipeline,distribution and gas processing assets owned and/or operated by APA are designed,constructed,tested,operated and maintained in accordance with pipeline and distribution licences issued by the relevant State and Territory technical regulators.All licen

321、ces require compliance with relevant Federal,State and Territory environmental legislation and Australian Standards.The pipeline licences also require compliance with the Australian Standard AS 2885“Pipelines Gas and Liquid Petroleum”,which has specific requirements for the management of environment

322、al matters associated with all aspects of the high pressure pipeline industry.Construction Environmental Management Plans satisfying Section 6 of the Australian Pipeline Gas Association Code of Environmental Practice are prepared as needed.Major project construction activities are audited or inspect

323、ed in accordance with Environmental Management Plan requirements.In accordance with Part 3 of AS 2885,Environmental Management Plans satisfying Section 7 of the Code are in place for applicable operating pipelines and are managed in accordance with APAs contracts and the terms and conditions of the

324、licences that APA has been issued.The Safety and Operating Plan for the distribution networks in NSW that APA operates has been audited during the financial year,in accordance with technical regulatory requirements.Senior management reviews audit report findings and any material breaches and inciden

325、ts are communicated to the Board.No significant breaches have been reported during the financial year and APA has managed its assets in accordance with the relevant Environmental Management Plans.11.3 Environmental reportingIn October 2015,APA complied with Australias National Greenhouse and Energy

326、Reporting(“NGER”)obligations for FY2015.Energy reporting for FY2016 will be submitted in October 2016.APAs main sources of emissions are from the combustion of natural gas in compressor stations,from fugitive emissions associated with natural gas pipelines and from gas fired power stations.NGER comp

327、liance reporting applies to assets under APAs operational control,which includes gas transmission/distribution pipelines,power generation facilities(including wind farms),gas storage,gas processing,cogeneration,electricity transmission interconnectors and corporate offices.28APA Group Annual Report

328、2016directors report.continued.AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESAPAs summary of Scope 1 emissions and energy consumption for the 2015 financial year are set out in the following table:FY2015 FY2014 1 ChangeScope 1 CO2 emissions(tonnes)350,922 311,421 12.7%Energy consumption(GJ)4,

329、633,613 3,937,718 17.7%1)Energy consumption figure for 2014 has been corrected since the FY2015 Directors report,which incorrectly stated the energy consumption figure due to an error in the Clean Energy Regulators online system.The figure indicated in this years report is the updated figure.The var

330、iations are largely due to an increase in compressor use on the South West Queensland Pipeline and Moomba Sydney Pipeline.11.4 Environmental StrategyIn June 2015,APA launched a two year Environment Strategy and Improvement Plan to provide a corporate governance framework for environmental management

331、 across all its operations in Australia.Key initiatives within the Plan include development of corporate environment procedures across eight workstreams,a training and awareness program,and implementation of a structured audit program.The strategy is progressing according to schedule.Development of

332、environment procedures is complete and the awareness program is underway,due for delivery in the first half of FY2017.There is strong engagement and involvement of the various business groups in the development and implementation of this strategy with dedicated support from a specialised team.Once f

333、ully complete,this work will ensure APAs environmental management and compliance remains robust and comprehensive.For further information on APAs environmental management initiatives,please refer to the Sustainability Report(page S4 to S5),which forms part of this report.12.Risk OverviewAPA identifies risks to its business and puts in place mitigation strategies to remove or minimise the negative