AGL Energy has hit out at federal authorities intervention in power markets because it plunged into the crimson with a first-half loss.
Not serving to shoppers, AGL stated on Thursday it anticipated sustained intervals of upper wholesale electrical energy costs this yr to stream by way of to retail costs.
AGL chief government Damien Nicks stated though federal intervention has contributed to a discount in wholesale electrical energy costs, these costs stay elevated in comparison with latest years.
“We are concerned that the temporary domestic commodity price caps and mandatory code of conduct for gas producers has increased regulatory instability and uncertainty,” he stated.
The strikes have been impacting business and funding confidence, notably for gasoline and coal producers, and did not assist efforts to decarbonise the electrical energy grid, he stated.
“Policy certainty and clarity is key to encouraging new investment required for the transition,” he stated.
But he stated AGL supported among the measures, together with the shopper invoice rebates.
A yr in the past, an audacious however in the end unsuccessful takeover bid by Australian tech billionaire Mike Cannon-Brookes spurred a board clean-out and a brand new chief government.
Presenting his first outcomes as CEO, Mr Nicks stated a extremely skilled board and administration groups have been now in place to execute the strategic plans and a faster transition.
“We also look forward to sharing further details on our business strategies at an Investor Day, targeted for mid-2023.”
He stated AGL expects to have larger earnings within the second half of FY23, in step with steerage, and continued constructive momentum into FY24.
“Our first half result reflects the impact of plant outages during challenging energy market conditions in July, the prolonged Loy Yang Unit 2 major outage caused by a generator rotor defect, and the closure of Liddell Unit 3 in April 2022,” he stated.
AGL posted a web lack of $1.075 billion within the six months to December 31.
The predominant drivers have been $706 million in asset impairments from an accelerated decarbonisation plan and a change within the worth of economic devices, AGL stated in a press release to the ASX.
AGL, Australia’s greatest carbon emitter, intends to finish its exit from coal-fired technology by the top of FY35.
The closure of the Liddell Power Station in April 2023 would be the subsequent key milestone, decreasing AGL’s carbon footprint by eight million tonnes a yr.
Revenue rose 36.7 per cent to $7.808b, AGL stated in a press release to the ASX.
The underlying revenue greater than halved to $87m.
AGL expects an enchancment within the second half on a rise in technology and a discount in outages, partly offset by decrease ahead electrical energy costs.
The buyer margin is anticipated to enhance because of development in buyer providers.
But working prices are forecast to extend amid unhealthy money owed and inflation.
AGL trimmed its earnings steerage for FY23 to underlying EBITDA of $1.250b to $1.375b.
Guidance for underlying web revenue after tax narrowed to $200m to $280 million.
AGL pays an interim dividend of eight cents, down from 16 cents.
Source: www.perthnow.com.au
