Australian Power And Gas Company Limited (ASX:APK) Releases Forecasts For Financial Year 2012

Sydney, April 27, 2011 AEST (ABN Newswire) - Australian Power & Gas (ASX:APK) is pleased to confirm the success of its aggressive growth strategy and release its FY12 forecast.

The forecast for FY12 is as follows:

- Customer accounts: 400,000 - 415,000

- Revenues: A$380 - 410 million

- EBITDAF: A$36 - 40 million

- Underlying NPAT: A$10 - 12 million

The Company confirms its full-year forecast for FY11 as follows:

- Customer accounts: 260,000 (up from 250,000)

- Revenues: A$200 - 220 million

- EBITDAF: A$21 - 23 million

- Underlying NPAT: A$3.5 - 4.5 million

"Since last June we have seen record new sign-ups as we continue to grow at some of the fastest rates in our industry," said Chief Executive Officer James Myatt. "The Australian Power and Gas products are selling strongly in all markets, leading to the greater than expected acquisition result this financial year and the strong FY12 forecast we have released today".

The company recently boosted its offering to include gas in New South Wales, making it a dual power supplier to residential households in Victoria, New South Wales and Queensland. In recent months about 30% of new customer acquisitions came from New South Wales and about 20% from Queensland.

The Appendix 4C (see link at the bottom of the release) for the three months ended 31 March, is also attached with this announcement. Cash flow in the quarter reflected the costs associated with acquiring new customers at above-budget rates, the seasonal impact on customer payments in the quarter, and increase in credit support to the Australian Energy Market Operator to support record growth. It is in line with budget forecasts.

Australian Power & Gas is building a national footprint through its expertise in marketing directly to households, and by offering a superior service and overall customer experience. The company's direct marketing formula, which includes face to face sales, telemarketing and on-line marketing, has proved very successful.

Mr Myatt said: "Our ability to work our channels is as good as any of our larger competitors. Our forecast numbers released today show the business is in full-scale growth and has moved past its inflection point ready to deliver a strong profit. "

For the complete Australian Power & Gas announcement including Appendix 4C, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/632330.pdf

Contact

James Myatt Australian Power & Gas Tel: +61-2-8908-2700 http://www.australianpowerandgas.com.au