APA Group sales soar 20% for 2013

APA Group (ASX: APA) announced its 2013 full-year results today, making moves on both its top and bottom line. Total revenue clocked in at $1.27 billion, 20% higher than 2012’s sales. At the same time, the company squeezed even more out of more with a 27% boost in adjusted profit.

Australia’s largest natural gas infrastructure business seems to be making the most of its 14,000 km of gas transmission pipelines, pushing operating cash flow up 29% to $433 million. Transmission businesses are sought after by many investors due to their “toll booth” model that pulls in piles of cash with low operating costs after the initial investment.

APA also increased its dividend 1.4% to $0.355 for fiscal 2013, a move that should leave income investors satisfied. However, the company’s payout ratio also headed 1.2 percentage points higher to 68.2%, meaning APA has fewer funds to focus elsewhere on maintenance, R&D, capital expenditures, or other investments.

But APA’s distribution increase doesn’t seem to be slowing down the company. It continued and/or completed $1.5 billion in expansion projects, and is increasing its national coverage through acquisitions and developments. The company is diversified across Australia, but Queensland took the cake for 2013. EBITDA headed 105.8% higher for the state, while Western Australia & Northern Territory added 17.3%, Victoria & South Australia increased 2.2%, and New South Wales contracted 0.4%. As of this writing, APA shares are up 0.85% for the day.

The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.