APA Group organisational structure changes and new senior leadership appointments

APA Group (ASX:APA) today announced changes to the organisational and reporting structure of its operations, and the appointment of additional executives to its senior leadership team.

Organisational structure

In response to APA's considerable growth over the last four years through both organic developments and acquisitions, APA has today announced a reorganisation of its organisational and reporting structure to better reflect its discrete core businesses and significant infrastructure development activities. This reorganisation replaces APA's current functional divisions of Commercial and Operations.

Following the reorganisation, APA will have three business divisions aligned with its core businesses:

  • Strategy and Development - the development and operation of complementary and new energy assets which enhance or protect APA's asset portfolio;

  • Transmission - the operation of APA's natural gas pipelines and associated storage facilities, together with the commercial sales function relating to these assets; and

  • Networks - the operation of APA's investments in natural gas distribution networks.

Two new divisions have been established to oversee APA's significant capital works:

  • Infrastructure Development - responsible for engineering services and the delivery of APA's infrastructure expansion projects; and

  • Strategic Projects - responsible for the management of APA's major capital works projects, including the Mondarra Gas Storage Facility expansion and the Diamantina Power Station development.

APA's corporate services of Finance, Human Resources and Company Secretariat are unchanged. There will be no change to statutory segment reporting as a result of the reorganisation.

APA Managing Director Mick McCormack said "The new organisational structure we've announced today prepares APA for the next phase of our growth. It brings together the revenue and cost sides of each core business and improves our ability to respond to our customers' needs and optimise the services we provide. It also better aligns the business with our strategy, with a focus on our organic infrastructure expansion projects and complementary power generation investments."

Leadership structure

These changes have resulted in the creation of five new leadership roles and two new appointments to the senior leadership team.

Ross Gersbach, currently Group Manager Commercial, has been appointed to the newly created role of Chief Executive Strategy and Development. Ross will focus on further enhancing APA's portfolio of assets that complement the value of its infrastructure, including APA's investments in gas-fired and wind power generation, and oversee the operation and development of these assets. He will continue to be responsible for APA's Energy Investments, group strategy, regulatory and government affairs, environmental development and mergers and acquisitions.

The Transmission and Networks businesses will be headed by two new appointees to APA's senior leadership team, Rob Wheals and John Ferguson.

Rob Wheals is currently General Manager Commercial where for the last four years he has been responsible for managing APA's pipeline revenue contracts and customers on a national basis. This has included the organic expansion of APA's gas transmission and storage portfolio, totalling in excess of $500 million of capital projects over this time. Rob will move into the newly created role of Group Executive Transmission where he will manage both the commercial sales and operations of APA's gas transmission business.

John Ferguson is currently General Manager Networks and is responsible for the operation and management of APA's and Envestra's network businesses, covering 25,000 kilometres of gas distribution pipelines and 1.2 million gas users in eastern Australia. John will move into the newly created role of Group Executive Networks and maintain leadership of the operation of APA's gas networks businesses. John's four years in APA is a continuation of his 30 year career in the gas infrastructure business, covering operations, network development and gas marketing.

Stephen Ohl, currently Group Manager Operations, has been appointed to the newly created role of Group Executive Strategic Projects, and will apply his 35 years' experience in energy infrastructure construction and operation to APA's major capital works.

Peter Fredricson continues as Chief Financial Officer, Peter Wallace as Group Executive Human Resources and Mark Knapman as Company Secretary.

APA will appoint the Group Executive Infrastructure Development in due course.

All the senior leadership positions will report to Mick McCormack. Mick has been APA's CEO since July 2005 and a senior leader throughout APA's 12 year history.

The new organisation structure is attached as an appendix to this announcement (see link to 'Download PDF' below). The new structure and appointments will be effective from 1 May 2012.

distributed by