REPORTING SEASON: AGL Limited (AGL)

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Figure 1: AGL Limited 12 month chart

 

AGL Energy (AGL) posts a 62% fall in statutory profit as expected

– AGL Energy (AGL) released a FY15 result that was at the top end of market guidance. AGL posted a 61.8% fall in statutory profit to $218M down from $570M. The company initially updated the market in July that it would declare a $435M write-down for the one off impairment cost related to its upstream gas assets. In their official result, AGL added the $117M costs associated with the Macquarie Generation acquisition resulting in total significant items of $578M.

– AGL had already told the market that it is in the process of restructuring its business to allow for it to cut down on operational costs and streamline its retail energy business. AGL has already said it is looking to sell off another ~$1B worth of underperforming assets by the end of FY16. It expects pre-tax restructuring costs of approximately $20M that will be recorded as significant items in FY16 and expects to see a reduction of $100M in real sustaining CAPEX by FY17.

– AGL posted a small lift in gross margin per customer account up to $198 from $187 the previous year even with a 1.7% slide in the number of AGL retail clients to 3.7Million.

– AGL will pay a final dividend of $0.34 p/share in September 2015. AGL said it will provide formal guidance of its FY16 earnings outlook at its Annual General Meeting (AGM) on 30 September 2015.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,