Just had a quick look at APA on the asx website, the P.E seems extremely high, so a quick question that may save me some time, if their price to earnings is already at 2,932, how will they fund a takeover?APA in talks to acquire Bass link, if this deal goes through it should be a nice addition to their portfolio of assets.
My appologies, I'm on a phone and the print is small and my eyesight isn't great, thanks for the post. Still looks all a bit toppy to me.Fundamentals
according to Commsec
- Market Capitalisation$10.69B
- P/E Ratio27.53
- EPS $0.340
- PE Growth-
- Debt to Equity Ratio 457.2%
- Price to Book 4.89
- 5 Year Beta 0.56
- Margin Lending LVR 70%
please note this data might not be up-to-date ( at least not as current as you might wish )
but the numbers haven't looked attractive to me , yet
| Debt/Equity Ratio 768.60 for SYD |
| Debt/Equity Ratio 1604.10 for QAN |
Their reported Earnings are always artificially low, due to the large accelerated depreciation charges they are allowed to write off against earnings.Just had a quick look at APA on the asx website, the P.E seems extremely high, so a quick question that may save me some time, if their price to earnings is already at 2,932, how will they fund a takeover?
They have $1.9 Billion of available liquidity on their balance sheet already, and given the high amounts of regulated income don’t have a problem in issuing long dated bonds, they even have a 60 year bond on their books.even if the APA debt ratio is only 457% , your question on how they will raise funding remains valid ( imo )
i sure as heck won't be buying APA debt at less than 9% p.a. interest , and might resist even at 11% p.a.
I actually think the idea of buying into Basslink, is a good idea, it is forward thinking, I was just wondering how it would affect their balance sheet.They have $1.9 Billion of available liquidity on their balance sheet already, and given the high amounts of regulated income don’t have a problem in issuing long dated bonds, they even have a 60 year bond on their books.
Not to mention that regulated utilities have their interest costs built into the prices they are allowed to charge, so if their average interest rate did rise, so would their prices.
Yep, They already own the Qld-Nsw interconnection and the SA-ViC, so it’s a business they understand.I actually think the idea of buying into Basslink, is a good idea, it is forward thinking, I was just wondering how it would affect their balance sheet.
The gas pipelines will be used a lot during the transition from coal, then IMO there will be a huge capital cost to change the infrastructure to cope with H2, but that isn't insurmountable. So I'm very interested, just trying to get a handle on it.
Pretty much the only way to fail would be to pay to much.I'll simply say that if you own the gas network, and buy the electricity network, well then it would be rather hard to fail.
It's equivalent to owning every method of transport or owning every form of media. Regardless of which has the most success, as a company you win.
Even better when your revenue and profit is effectively guaranteed.
"Whilst there are clearly attractive aspects to that market, it also involves a number of risks and ongoing investment challenges."
As an Apa shareholder, I feel a bit more comfortable with them sticking to the Australian Market, I wouldn’t have been against them going into the USA market, but I am kinda glad they have chosen not to.APA deciding not to go the risky path / pursue the risky pipeline :
The current MD is cutting links and leave in December as the Board has decided not to buy assets in the US market, instead "preferring to focus on returns to investors" .
It's an infrastructure business. Chairman Michael Fraser said of the US:
It certainly would be interesting to find out what turned them off.APA deciding not to go the risky path / pursue the risky pipeline :
The current MD is cutting links and leave in December as the Board has decided not to buy assets in the US market, instead "preferring to focus on returns to investors" .
It's an infrastructure business. Chairman Michael Fraser said of the US:
I think it was just a lack of suitable deals, they were looking for 3 years, but they did say several times that it was a competitive environment.It certainly would be interesting to find out what turned them off.
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