asset management

APA 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 services 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 $95.4 million (FY2015: $85.1 million) and EBITDA (for continuing businesses, excluding corporate costs) increased by $4.4 million or 8.9% to $53.9 million (FY2015: $49.4 million).

ASSET MANAGEMENT REVENUE

ASSET MANAGEMENT EBITDA


This increase in revenue 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 have 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 CONTRIBUTIONS

Customer contributions were in-line with the long term average of approximately $10 million per annum. APA continues to expect 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 agreements remain on foot until 2027.

STATISTICS
Network assets owned and/or operated by APA

Gas consumers  
New connections 33,478
Total connections 1,335,534
Natural gas distribution networks  
New pipelines 453km
Replacement pipelines 416km
Total pipelines managed 28,424km
Gas transported 110.5PJ

Solid residential 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 Melbourne's northern growth corridor over the next 20 years.

GAS CONSUMER CONNECTIONS GROWTH ON APA OPERATED GAS NETWORK