The APA Group (ASX: APA) share price is trading slightly higher today after the gas pipeline owner released an update informing the ASX of its revised profit guidance.
What did APA announce?
APA released an announcement earlier today informing that market of revised FY20 earnings guidance due to delays in upgrades for the company's Orbost Gas Processing Plant.
In addition, the gas supplier also provided an update on the impact of the coronavirus pandemic on the company's operations.
The company notified shareholders that earnings before interest, tax, depreciation and amortisation (EBITDA) for FY20 has been revised to a range of between $1.635 billion and $1.655 billion. The revised guidance is approximately 2% lower from the company's original range of $1.66 billion and $1.69 billion.
Despite the modified guidance, APA is still on track to deliver an increase of 3.8% to 5.2% in EBITDA for the full year, after delivering EBITDA of $1.574 billion in FY19.
In addition, APA also informed investors that the expected dividend for the financial year remains at 50 cents per share, a 6.4% increase from the 47 cents delivered last year.
APA had previously notified the market earlier this year that the company was initially expecting guidance for 2019-20 to be in the lower end due to delays with completing plant upgrades.
How has the coronavirus pandemic impacted APA?
APA has been one of the few energy companies that have seen little impact on operations as a result of the coronavirus pandemic. The company's management assured shareholders in today's update that COVID-19 has had no material impact on APA's operations.
As a provider of gas transportation and energy generation, APA highlighted that the company has been executing its business continuity plans in order to provide its essential services.
In addition, management acknowledged that APA's liquidity position remains strong, with the company boasting $1.2 billion in cash and undrawn facilities available.
Should you buy?
APA's underlying business and operations have remained resilient throughout the coronavirus pandemic. This strength has been reflected in the company's share price which has bounced more than 30% from its low in mid-March and is currently flat for the year, which is more than can be said for most other ASX shares.
APA has noted that given the evolving nature of the coronavirus pandemic, business restrictions and reduced economic activity could result in clients deferring investment decisions and growth projects.
At the time of writing, the APA share price is trading relatively flat for today's session, up 0.64%, while the S&P/ASX 200 Index (ASX: XJO) is down 1.43%.
