- AGL Energy (AGL) has reported a $2.58 billion loss in the face of subdued electricity prices and a failed LNG import jetty proposal
- AGL Energy’s Managing Director and Chief Executive Officer Graeme Hunt says the results reflect a “challenging” year
- The proposed Crib Point LNG project was knocked back earlier this year by the Victorian Government over environmental concerns
- The company’s demerger is said to be progressing well and is hoped to lead the company’s transition into “greener energy”
- AGL Energy shares are down 5.26 per cent to trade at $7.20 at 3:22 pm AEST
AGL Energy (AGL) has reported a $2.58 billion loss in the face of subdued electricity prices and a failed LNG import jetty proposal.
AGL Energy’s Managing Director and Chief Executive Officer Graeme Hunt said results for the 2021 financial year reflected a “challenging year” for one of Australia’s largest energy companies.
AGL reported an 18 per cent drop in underlying earnings before interest, taxes, depreciation and amortization to total $1.66 million and a 34 per cent decrease in underlying after-tax profits of $537 million.
The company attributed the loss to several factors including onerous contract provisions, an increase in environmental restoration provisions and a $243 million loss associated with the curtailed Crib Point project.
The Victorian government knocked back the proposed $250 million project in March after it was deemed to carry “unacceptable environmental effects”.
The loss may not come as a surprise to investors after AGL flagged a “material step down” in earnings back in June due to lower wholesale electricity prices.
A report from the Australian Energy Market Commission in December 2020 forecasted residential electricity prices would fall by 8.7 per cent on average from 2022 to 23.
Mr Hunt said AGL was well progressed to implement the demerger into Accel Energy and AGL Australia in the fourth quarter of FY22.
“We believe the proposed demerger will create two new entities, each with
clarity of purpose and strong foundations. (This) will position them well to lead the energy transition, while protecting and delivering value to shareholders,” he said.
AGL declared a final unfranked dividend for FY21 of 34 cents per share.
AGL Energy shares were down 5.26 per cent to trade at $7.20 at 3:22 pm AEST.