The nation’s largest power supplier AGL (ASX:AGL)
continued to battle the rise in renewable energy which saw a dent to their financial 2021’s profits. The power supplier posted a $2.1 billion loss after posting a $1.0 billion profit the year prior with their revenue tumbling 10 per cent at $10.9 billion.
Their underlying EBITDA fell 18 per cent to $1.6 billion while underlying net profit after tax fell 34 per cent to $537 million dollars to an eight year low compared to the year earlier. Net bad debts of $29 million came in lower than the $11 million expected at the start of the year.
“There has been continued uncertainty regarding energy policy and an acceleration of the market forces that determine our strategy.” “This has included increasing pressure for energy companies and society as a whole to take accelerated action on climate change.” said chair Peter Botten.
In June this year, the company unveiled their demerger proposal to create two energy businesses Accel Energy and AGL Australia to get a better grip on the changing energy market. It's been penciled in that Accel Energy is to own a 15-20 per cent equity interest in AGL Australia.
Accel Energy’s focus is to transition existing electricity generating assets to low-carbon industrial energy hubs as well as new clean energy projects. While AGL Australia will focus on their retail energy and gas business. The proposed plan saw their previously announced special dividend get cancelled to support the raise of $400-500 million of additional equity.
Despite this, AGL managed to squeeze out a final dividend of 34 cents per share, a 37 per cent fall from last year's pay out of 54 cents per share. The payout is slated to be paid on 24 September this year.
“Our FY21 result reflects a challenging year for AGL Energy as we realised the impact of lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll-off of legacy supply contracts in wholesale gas,” said AGL’s chief executive officer Graeme Hunt.
Shares in AGL (ASX:AGL)
are trading 5 per cent lower at $7.215.