AGL Energy Limited (AGL) today reported its financial results for the six months ending 31 December 2024 (1H25).
Key Financial Highlights:
- Statutory Profit after tax: $97 million, impacted by significant items including a $165 million increase in onerous contract provisions and a $45 million charge for Retail Transformation costs.
- Underlying EBITDA: $1,068 million, reflecting a slight 1% decline from the previous period.
- Underlying Net Profit after tax: $373 million, down 7% compared to 1H24.
- A fully franked interim dividend of 23 cents per share was declared.
Updated FY25 Guidance:
- Underlying EBITDA is now expected to be between $1,935 million and $2,135 million, a narrowing from the previous range of $1,870 million to $2,170 million.
- Underlying Net Profit after tax is revised to be between $580 million and $710 million, up from the previous range of $530 million to $730 million.
CEO Commentary on 1H25 Performance: AGL’s Managing Director and CEO, Damien Nicks, expressed satisfaction with the first half results, highlighting the flexibility of the company’s generation fleet and its ability to capitalize on higher electricity prices, especially from their growing battery portfolio. He also noted challenges in the retail sector, where lower customer pricing and increased competition led to margin compression.
Despite this, AGL has maintained positive customer advocacy, and its Total Injury Frequency Rate improved, signaling progress in operational safety. The company also remains on track with its strategic goals, including a strong focus on sustainability and decarbonization through its expanding generation portfolio and the ongoing Retail Transformation program.
Operational Highlights:
- AGL’s development pipeline now totals 7.0 GW, with continued investments in flexible capacity, including a 500 MW Liddell Battery project set for operational start in early 2026.
- The company is also expanding its footprint in virtual battery projects, including a second 200 MW agreement with Neoen for the Western Downs Battery, which is expected to be operational by 2026.
Strategic and Governance Changes:
- As part of ongoing leadership transitions, Patricia McKenzie will step down as Chair of the Board, and Miles George will succeed her.
- AGL has appointed PwC as its auditor from FY26, subject to shareholder approval at the 2025 AGM.
- Markus Brokhof, AGL’s Chief Operating Officer, will retire in September 2025, following a period of significant organizational transformation.
Outlook for the Second Half of FY25: AGL expects second-half earnings to moderate due to typical weather seasonality, customer competition, and increased operating costs. However, the company remains confident in its strategic direction and its ability to deliver on its full-year guidance.
