APA finalizes divestment of gas distribution operations

APA Group announced on December 1, 2025, the completion of the divestment of its Networks business, which includes entities providing gas distribution operations and maintenance services. This follows an agreement to divest these entities announced on August 19, 2025. The transaction involves the transition of approximately 725 APA employees and the cessation of asset management and operating services for third-party owned gas distribution assets.

APA will provide post-handover services under a transitional services agreement for up to 18 months, with a potential extension of six months. The completion of the Tamworth gas distribution network divestment is anticipated in early 2026, pending regulatory approvals. Chief executive Adam Watson stated that the divestment simplifies APA's business, reduces costs, and allows for greater focus on key growth platforms.

The divested entities' earnings, derived from fixed-term asset management contracts nearing their end, represented less than 2% of APA's FY25 underlying EBITDA. Proceeds from the sale are estimated to be $29 million, adjusted for contractual cashflows received since June 30, 2025, and subject to final working capital adjustments.