What Happened to the APA Group Share Price?
APA Group [ASX:APA] is made up of the Australian Pipeline Trust and APT Investment Trust. APA operate natural gas transportation. That means they transport natural gas from the supplier to homes.
APA have an interest in 14,100 kilometres of high pressure gas transmission pipelines in Australia. In addition, the company manages another 25,000 kilometres of gas distribution networks through Victoria, South Australia, Queensland, Northern Territory and New South Wales.
The share price closed 0.68% higher on Friday
Why Did This Happen to APA Shares?
APA confirmed yesterday that they will be selling their 33% stake in Envestra Limited [ASX:ENV] to CK ENV Investments. Selling their Envestra shares will see APA pocket $784 million gross, and a pre estimate, pre-tax profit of $430 million.
APA Group had made a $2.1 billion takeover bid for Envestra in March this year, which was rejected.
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What Now For APA Group?
APA have confirmed they will use the proceeds from the sale of their interest in Envestra to fund ongoing projects over the next 12–18 months.
It’s been a strong year for share price growth for APA. The stock has gained 23.5% so far this year.
Full year 2014 financials haven’t been released yet. However, the company has confirmed net profit will be in the forecast range of $145–150 million. There are estimates that it may even fall into the top end of the guidance.
The company paid a full year dividend of 35 cents in 2013. This year’s full year dividend is yet to be announced.
APA is a high yielding stock with a strong investment in gas distribution networks. The company should continue to be a solid performer.
Shae Smith+
Editor, Money Weekend
The post Why the APA Group Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
