Gas companies listed on the Australian stock exchange include the APA group and Arrow energy Ltd. We’ve reviewed some of the fundamental aspects of their corporate strategy and structure. The existence of these companies indicates the status of the gas market in Australia at both the exploration and development as well as the delivery ends of the market.
Arrow energy Ltd is involved in the undertaking of gas exploration, development and production activities in Australia and Asia. The company has positioned itself as a major parties are in Queensland’s coal seam gas provinces. It also has overseas interests. Arrow energy strategy is to maximise shareholder value by becoming a global coal seam gas company. Arrow energy sector grow upstream production and reserves as well as improved margins through downstream exposure. This has been implemented through Arrow energy’s investment in LNG Ltd and the associated gas supply agreement the proposed LNG facility lets them as well is through building a portfolio of gas-fired power stations. The company is also building overseas business groups targeting 80 P Joules per annum of production and 2500 individuals of approved and probable reserves by 2015. Another key strategies to maintain healthy financial position. In June 2008 the company announced an alliance with Royal Dutch Shell who took a 30% interest in the Australian tenements and a 10% interest in their international operations. This provided immediate cash injection is also access to international experience and resources.
APA group owns and operates over 12,000 km of natural gas pipeline infrastructure throughout Australia with a significant presence in all maintain states and territories. Over 90% of revenue is contracted or regulated. APA transports over 50% of Australia’s natural gas through network of pipelines comprising a mixture of mature, establish pipelines such as member to Sydney and more recently constructed pipelines. APA has made significant acquisitions with Gasquet, the dominant gas transmission pipeline operator in Victoria and all gas energy being a South Australian Queensland gas distributor and Origin Energy networks provider of management and operation services to be touring gas distribution and transmission Company investor as well as a 30% stake in investor and 33% interest in the SCA gas pipeline. The company strategy revolves around the development of Australia’s leading energy transmission and distribution business. There is a commitment to grow the business and to maximise the value of the security holders. Growth is achieved via a three pronged management philosophy being comprised of organic growth within the business, the development of brown fields and greenfield projects and buy outright acquisition. The APA business model is a low-cost, transparent and competitive one with no fee leakage. Financial strategy aimed at increasing annual distributions by at least consumer Price index. A high priority is the development of the gas transmission grid linking the populous eastern states of Australia. The grid would enable seamless tariff to be charged gas supplied through the eastern seaboard which would drive expansion of a competitive gas market in Australia. It would foster an increased competition between gas producers regardless of location of the reserves.
Article Source: http://www.articlesbase.com/investing-articles/gas-companies-listed-on-the-australian-stock-exchange-apa-group-and-arrow-energy-ltd-4676267.html
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David Coleman engages valuers to assist with business valuation based in Sydney, Australia. If you would like legal advice or tax advice please do not hesitate to click on the links provided here.