APA Group confirmed on Wednesday underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 3.9 per cent to $1.69 billion in the year to June 30.
But shares in APA fell 19 cents, or 1.6 per cent, to $11.35 in afternoon trade as guidance on future dividends disappointed investors.
Tariffs surged, particularly for the Wallumbilla gas pipeline in Queensland, and stronger demand in the Victorian transmission system saw the Orbost gas processing plant ramp up.
APA also updated its climate commitments with a new 2030 pledge to reduce emissions by 30 per cent in gas transmissions, cut emissions intensity by 35 per cent in power generation, and reduce emissions in electricity transmission.
APA, which delivers around half of Australia's gas, had another "solid" result in a year that showed how gas would be critical to Australia's energy transition, CEO and managing director Rob Wheals said on an investor call.
Gas was the key ingredient to help Australia fast-track the energy transition, not handouts for an import terminal in Port Kembla, Mr Wheals said.
He said Australia would be in the "bizarre" position of being a leading gas exporter while also importing the same gas, or higher emissions, higher-cost gas from elsewhere.
"Frontier basins in NT, Queensland and elsewhere will need to be developed and require connection with the east coast market," he said.
Chief Financial Officer Adam Watson told analysts hedging was in place to protect APA from rising interest rates and high margins also helped to "cushion" the impact of inflation on earnings.
Free cash flow was up 19.8 per cent to $1.08 billion, with future capital spending to focus on Australia after the company abandoned plans to buy into utilities in the United States.
Key projects progressed included the $460 million Northern Goldfields Interconnect in Western Australia and the Mica Creek Solar Farm at Queensland's Mt Isa to support mining operations.
APA had also purchased 100 per cent of Basslink senior secured debt, with the "ultimate goal" of acquiring Basslink, Mr Wheals said.
A proposed $270 million expansion of gas transportation capacity on the East Coast grid will link Queensland to southern markets and plug future winter gas shortfalls.
APA also operates 3500km of gas transmission pipelines in WA to the iron ore, nickel and gold-mining industries, and provides pipeline and storage for Perth and the southwest.
In a shock announcement on Monday, APA said Mr Wheals would step down next month after 14 years with the company.
Mr Watson will serve as acting CEO and and APA's General Manager of Investor Relations Kynwynn Strong will be appointed as acting CFO.
APA declared a partly franked 28 cents per security final distribution, bringing the full-year distribution to 53 cents per security, in line with guidance.
The fiscal 2023 distribution was forecast at 55 cents per security, up 3.8 per cent.
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