Natural gas infrastructure owner APA Group expect clean earnings in the financial year ahead since natural gas use around the nation is expected to grow.

APA managing director Michael McCormack said, “According to recent government forecasts, natural gas use in Australia is expected to double over the next 20 years as we move towards using cleaner fuels, particularly using gas as a fuel to generate electricity.”

The expected increase in demand, McCormack added, “creates new growth opportunities for gas transportation and gas storage.”

The forecast and earnings for the recent financial year kept the gas pipeline owner in a profitable position. The group would continue its distribution policy of increasing returns to shareholders by at least 5 percent per year, on average, over the medium term. The distribution increase is expected to be maintained for the 2011 financial year.

The group gained a 27 percent increase in profit this year excluding one-off charges. Net profit for the 2009-2010 financial period rose to $100.4 million from last year's $78.8 million. With the one-off items, net profit rose a more modest 0.6 percent to $100.4m, from $99.7m.

McCormack said the group is not rushing to increase its holding in Hastings Diversified Utilities Fund from its current level of 17 percent. Approval from the competition regulator could move levels to 19.9 percent.