APA Group boosted its first-half profit sharply, driven by reduced finance expenses. The Australian energy infrastructure company posted net profit after tax of A$95 million for the six months ended Dec. 31, up from A$34 million in the prior-year period.

EBITDA climbed 7.7 percent to A$1.046 billion, compared with A$971 million last year. Stripping out one-time items, underlying EBITDA grew 7.6 percent to A$1.092 billion, the company said in a statement.

Directors declared a distribution of 27.5 cents per security for the half, a 1.9 percent increase from the previous period. That payout reflects steady cash flow from APA’s vast pipeline and gas storage assets across Australia.

Looking ahead, APA Group stuck to its full-year underlying EBITDA guidance of A$2.12 billion to A$2.20 billion. Executives also forecast a full-year distribution of 58 cents per security, up 1 cent from 2023.

The results come as APA handles a shifting energy landscape. Demand for natural gas remains firm in eastern Australia, where the company operates over 15,000 kilometers of pipelines. Recent acquisitions, including stakes in Queensland gas fields, bolster its position.

Lower finance costs played a key role this half. Net finance expenses dropped, thanks to refinancing efforts and stable interest rates. APA reduced its debt slightly, ending the period with A$11.8 billion in gross debt.

Revenue held steady at A$1.787 billion, matching the prior year. Operating cash flow strengthened to A$1.35 billion, up from A$1.28 billion.

APA’s pipeline network connects major gas production hubs to industrial users and export terminals. The company serves about 85 percent of Australia’s east coast gas market. Its Wallumbilla Gladstone Pipeline alone moves up to 3 million gigajoules daily.

Shares in APA Group, listed on the ASX as APA, rose 2 percent in early trading Friday in Sydney. The stock has gained 15 percent over the past year, outperforming the broader market.

Chief Executive Robert Scheuber highlighted the results in a release. “We delivered strong operational performance amid favorable market conditions,” he said. Scheuber pointed to disciplined cost management and asset utilization as core to the profit surge.

The confirmed guidance signals confidence. Analysts expect APA to hit the midpoint of its EBITDA range, supported by contracted volumes and index-linked tariffs. Full-year profit forecasts now sit around A$450 million.

Challenges persist. Regulatory scrutiny on pipeline access fees intensifies. The Australian Energy Regulator reviews APA’s revenue caps every five years, with the next decision due in 2025.

APA also eyes growth in renewables. It operates the 250-megawatt New England Solar Farm and plans hydrogen-ready infrastructure. Still, gas assets dominate, generating over 90 percent of earnings.

Distributions remain a priority for securityholders. APA targets a 50-60 percent payout ratio on underlying profit. The raised full-year figure marks the 22nd consecutive annual increase.

Investors watch for updates on the Morton Bay cable project, a A$1 billion undersea link to power Queensland data centers. Construction starts next year, with operations by 2027.