ASX RELEASE 1 March 2010 The Manager Company Announcements Office Australian Securities Exchange 4 th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: Interim Results Presentation Yours sincerely Mark Knapman Company Secretary APA Ethane Limited
EPX 1H FY 10 Results
Brief Overview Principal Activity Investment in the Moomba to Sydney Ethane Gas Pipeline, through wholly owned subsidiary, Gorodok Pty Limited Pipeline 1375km in length, running through regional NSW as well as the urban areas from Wilton into Botany Commercial Arrangements Pursuant to a long term Product Transportation Agreement (to 2030) with its sole customer, Qenos, Gorodok provides capacity on the pipeline for the transportation of ethane from the gas processing plant in South Australia s Cooper Basin to a petrochemical plant near Botany Bay, Sydney owned by Qenos. Operations EPX has no employees Operational roles are undertaken by East Australian Pipeline Pty Limited under long term operations and maintenance contract Presentation 2
1H FY10 Results Statutory Results FY10 Distributions Revenue Net Profit After Tax Operating Cash Flow Operating Cash Flow/Security $ 000 12,725 3,316 8,341 12.0 cents % Change 1.8 22.2 10.7 10.7 Period July 09 Sept 09 Oct 09 - Dec 09 Jan 10 Mar 10 Total YTD Date Paid / Payable 15 Oct 09 15 Jan 10 15 Apr 09 Amount Per Security (cents) 3.39 3.39 4.39 11.17 Statutory Results primarily impacted by: Lower maintenance expenditures Reclassification of SCADA costs as intangible assets Reduction in borrowing costs Reduction in insurance costs Reduction in management fees Distributions primarily impacted by: Early repayment of the Keybridge facility, beginning March 2009 now finalised Provisioning of funds for short-term mine subsidence monitoring Provisioning of funds for expected non-routine maintenance costs Presentation 3
Status of Key Issues Repayment of Keybridge $5m Debt Facility $5m repaid in installments from Mar 09 Final repayment paid in Dec 09 Finalised in Dec 09. Interest cost reduced from Mar 09 Non Routine Operating Costs Supervising 3 rd party work in State Rail (SRA) land Required to ensure public safety and to maintain pipeline integrity Commenced in FY09 Forecast to cost ~$1.5m over FY09 and FY10. $0.8m expensed to 1H FY10. Mine Subsidence Monitoring Due to underground coal mining activities in Appin region. Necessary to maintain pipeline integrity Expected to cost ~$0.5m over FY09 and FY10. $0.05m expensed to 1H FY10. Timetable for incurring costs is dependent on SRA works Current work expected to be finalised in FY10. Reduced monitoring during 1H FY 10, compared to expectation. This is a timing issue. Upgrade of pipeline control system Being carried out in conjunction with upgrade on Moomba- Sydney Natural Gas Pipeline Expected to cost ~$1.4m over FY09 and FY10. $0.5m incurred to 1H FY10. Project expected to be finalised in FY10. Treated as contract intangible on balance sheet. Presentation 4
Ethane Pipeline Wilton to Port Botany Presentation 5
Ethane Pipeline mine subsidence Presentation 6
Ethane Pipeline through Sydney Presentation 7
Ethane Pipeline SRA quadruplication project Presentation 8
Disclaimer The information contained in this presentation is given without any liability whatsoever to Ethane Pipeline Income Trust or Ethane Pipeline Income Financing Trust or any of its related entities (collectively Ethane Pipeline Income Fund ) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. Ethane Pipeline Income Fund accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation nor any obligation to furnish the person with any further information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information. The information in this presentation has not been independently verified by Ethane Pipeline Income Fund. Ethane Pipeline Income Fund disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or on behalf of Ethane Pipeline Income Fund that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved. Please note that, in providing this presentation, Ethane Pipeline Income Fund has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the addressee s objectives, financial position or needs. This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Ethane Pipeline Income Fund. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Ethane Pipeline Income Fund. Presentation 9