Australia's AGL reports A$2.1 annual loss
Australian utility AGL Energy on August 12 reported a statutory loss of A$2.1bn ($1.5bn) in the 12 months to June 30 (FY21) owing to factors such as lower electricity prices and costs associated with scrapped LNG import terminal project.
The loss included the charges associated with onerous contract provisions, an increase in environmental restoration provisions and other asset impairments announced earlier this year and the Crib Point LNG project cessation costs, Newcastle gas storage facility impairment, acquisition and integration costs, and restructuring and separation costs.
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“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,” CEO, Graeme Hunt, said. AGL’s underlying profit after tax, which excluded one-off items, came in at A$537mn, down 34% year/year.
The company said it is well progressed with the plan to implement the proposed demerger in the fourth quarter of FY22. "The board believes proceeding with the proposed demerger will protect value and provide greater strategic focus for both entities. We are progressing well with our plan to implement the demerger in the fourth quarter of FY22," Hunt said.
AGL said it expects an underlying profit of between A$220mn and A$340mn in FY22. It expects to deliver at least A$150mn in operating cost reduction for FY22 and A$100mn reduction in sustaining capital expenditure by FY23.