Chief Executive Officers Chief Executive Officers Presentation - PowerPoint PPT Presentation

Chief Executive Officer’s Chief Executive Officer’s Presentation Presentation Mick McCormack Mick McCormack

Agenda Agenda � Operating Highlights � Regulation � Half Year Financial Results Strategic Direction 6 Months Ended June 2005 � Industry Issues 2

Senior Management Senior Management Mick McCormack Stephen Ohl Rick Francis Chief Executive Officer General Manager, Ops Chief Financial Officer Half Year Financial Results 6 Months Ended June 2005 Sandra Dureau Austin James 3 General Counsel Company Secretary

FY2005 Profit FY2005 Profit Continuation of Growth trend $m 140 CAGR = 13.5% pa 120 100 Includes non-recurring 80 items Net profit from recurring 60 operations Half Year Financial Results 40 6 Months Ended June 2005 20 0 2001 2002 2003 2004 2005 4

Review of Operations Review of Operations Increased the Utilisation of Its Existing Assets � QLD - new long-term contracts on the Roma to Brisbane Pipeline � WA - new contracts on the Parmelia Gas Pipeline � NSW - new third party revenues have been contracted for the Moomba to Sydney Pipeline Half Year Financial Results 6 Months Ended June 2005 5

Review of Operations Review of Operations Queensland Roma to Brisbane Pipeline � Braemar power station gas haulage contract (6PJ, 10 years) � Incitec Urea plant (16PJ, 10 years) � CS Energy variation agreement (15PJ, 12.5 years) Half Year Financial Results 6 Months Ended June 2005 Carpentaria & Roma to Brisbane Pipelines 6

Review of Operations Review of Operations Western Australia Parmelia Gas Pipeline � Western Power - four year contract between $2-5 million revenue Half Year Financial Results 6 Months Ended June 2005 Parmelia, Mid-West & GGT Pipelines 7

Review of Operations Review of Operations New South Wales (SA and QLD) Moomba to Sydney Pipeline � Contracted GTD revenue decreasing ($5.6 million) � Additional revenue from 3rd parties as retail contestability increasing � Existing utilisation levels are expected to increase past 2006 Half Year Financial Results 6 Months Ended June 2005 Moomba to Sydney Pipeline 8

Review of Operations Review of Operations Mooma to Sydney Pipeline - Stress Corrosion Cracking Location of the pipeline section recently investigated for SCC . � SCC – not uncommon where certain ground and pipeline operating conditions exist – mainly identified in first 162kms of MSP � APA has – run two investigative “pigs” – regulatory authorities fully informed Aerial view Half Year Financial Results – identified and repaired six SCC locations 6 Months Ended June 2005 – identified, provided and programmed further repairs and pigging 9

Review of Operations Review of Operations Stress Corrosion Cracking Cont’d � Work on further sites to be completed by March 2006 � MSP has met and will continue to meet all safety, legislative and contractual commitments Half Year Financial Results 6 Months Ended June 2005 10

Review of Operations Review of Operations Strategic 5.3% Stake In GasNet Half Year Financial Results 6 Months Ended June 2005 11

Regulatory Matters Regulatory Matters � Australia needs a regulation which encourages efficient and effective development of infrastructure � Regulators must have clear goals and revised regulatory framework � Productivity Commission report is widely supported and should be fully implemented � Australian Energy Markets reform needs to recognise Gas and Half Year Financial Results Electricity are not the same 6 Months Ended June 2005 12

Strategic Direction Strategic Direction Core Strategy Remains � Expanding utilisation of existing pipelines � Diversification through - Acquiring pipeline assets - Complementary assets � Greenfields projects in Australia Half Year Financial Results 6 Months Ended June 2005 13

Strategic Direction Strategic Direction Complementary Assets � Diversification � Uses existing skills Half Year Financial Results 6 Months Ended June 2005 Kogan North Kogan North CSM 14

Strategic Direction Strategic Direction Greenfields Projects in Australia PNG Pipeline Project PAPUA - Kutubu Gobe Kopi NEW GUINEA � Gas supply to south - eastern and northern Port Torres Strait Australia is the issue Moresby Cape Bamaga York Gove AGL/Petronas PNG - Qld Gas Pipeline � Conditional contracts increasing likelihood Upstream PNG Gas Pipeline Weipa Existing Pipelines of PNG gas pipeline Cooktown � PNG Gas Pipeline Project is progressing Cairns with mid 2006 targeted as project approval Townsville NORTHERN date Mt Isa TERRITORY Mackay Cannington Half Year Financial Results � APA has right to acquire minimum of 20% Rockhampton Gladstone QUEENSLAND of the project from the consortium 6 Months Ended June 2005 Roma Moomba QLD/NSW Interconnection SOUTH Brisbane Ballera AUSTRALIA � Connects South West QLD Pipeline to MSP 15

Industry Issues Industry Issues Natural Gas As Part of the Energy Mix � Natural gas is the best “transition” fuel for the environment � Natural gas consumption likely to double to 2100PJ by 2030* � Gas should have a “Peak Body” to promote its benefits * Source - ABARE Half Year Financial Results 6 Months Ended June 2005 16

Summary Summary � The natural gas industry is evolving � The value and importance of natural gas in Australia is increasing � APA is developing strategies that build on its strong foundations and is well positioned to participate in opportunities as they arise � APA is on track to, at least, maintain profitability and distributions in FY2006 � Natural gas as a “transition” fuel will be significant in addressing environmental concerns Half Year Financial Results � This is an exciting time for our business 6 Months Ended June 2005 17

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