AGL Energy has posted a $1.26 billion statutory full-year loss after two vital writedowns in a unstable yr within the power markets.
The loss features a $680 million writedown of the worth of its coal-fired energy stations after final yr accelerating plans to shut them.
This was on the again of billionaire Mike Cannon-Brookes main a profitable shareholder revolt that scuppered plans to spin off the carbon-intensive property.
The loss additionally contains an $890 million loss on honest worth associated to its power derivatives contracts.
The energy large stated on Thursday that, excluding writedowns, it had an underlying web revenue after tax for the 12 months to June 30 of $281 million, up 25 per cent from a yr in the past.
“AGL’s financial result for FY23 reflects a strong second half following a challenging start to the year, which was impacted by volatile energy market conditions and forced plant outages, including the prolonged outage of Loy Yang Unit 2,” managing director and CEO Damien Nicks stated.
A generator rotor defect precipitated the problems on the coal-fired Loy Yang in Victoria, Australia’s largest energy station, which AGL now plans to shut in 2035.
AGL closed its 52-year-old Liddell station within the NSW Upper Hunter area in April, lowering its carbon dioxide emissions by eight megatonnes a yr.
Mr Nicks famous the closure was completed with no compelled redundancies, with 100 employees transferred to Bayswater station, additionally within the Hunter area.
AGL declared a closing unfranked dividend of 23 cents per share, bringing its complete dividends for 2022/23 to 31 cents, up 19 per cent from the earlier yr.
Looking ahead, AGL forecast an underlying 2023/24 web revenue of between $570 million and $780 million.
Sarah Xie, assistant vp of Moody’s Investors Service, stated AGL had benefited from a powerful working efficiency within the second half that offset the weaker-than-expected first-half outcomes.
“We expect cash earnings momentum to continue into FY2024-25 as the company’s legacy energy hedge positions progressively roll off and customer tariffs are repriced, provided there is no recurrence of sustained generator outages,” Ms Xie stated.
“That said, higher tariffs will likely be partly offset by lower electricity generation volumes following the closure of Liddell Power Station in April this year, as well as higher operating costs from increased plant maintenance activities and inflationary pressure.”
AGL shares closed down 3.1 per cent to $11.22.
Source: www.perthnow.com.au
