AGL slumps to $1.26b bottom-line loss
AGL Energy has slumped to an annual loss of $1.26 billion due to previously flagged writedowns on its coal power generator, but its underlying profit staged a recovery in line with the guidance it gave the market in June.
Underlying profit after tax for the major electricity and gas retailer rose 25 per cent to $281 million in the year ended June 30, up from $225 million, when electricity suppliers were hit by particularly volatile conditions in the wholesale market.
AGL CEO Damien Nicks said the company had a “strong” second half. Louie Douvis
Earnings before interest, tax, depreciation and amortisation on an underlying basis jumped 12 per cent to $1.36 billion, towards the top of the original guidance range AGL gave before its upgrade two months ago, which supported a rally in its shares.
AGL, whose biggest shareholder is software billionaire Mike Cannon-Brookes, advised last September that it would take an impairment charge of about $700 million after tax in this year’s results after bringing forward the closure date of its Loy Yang A coal power generator in Victoria by up to 10 years.
The final write-down on AGL’s fleet of power stations was $680 million, while a loss of $890 million was recorded on the value of derivative contracts.
The statutory loss for 2022-23 compared with a net profit of $860 million in 2021-22.
AGL declared a final dividend of 23¢ per share, more than double the 10¢ of a year earlier.
Chief executive Damien Nicks said the result reflected a “strong” second half after a “challenging” start to the year, which was impacted by volatile prices after last winter’s crisis on the National Electricity Market.
“We saw a significant improvement in plant availability as the year progressed, which
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