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AGL slumps to $2b loss, more pain ahead

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AGL slumps to $2b loss, more pain ahead

Australia’s greatest vitality retailer and generator AGL has warned of further pain after slumping to a $2.06 billion tubby-twelve months salvage loss as lower energy prices continue to weigh on its financial efficiency.

The FY loss had been anticipated after the company in February outlined writedowns related to onerous wind farm offtake agreements.

Early Newspaper

It became additionally damage by higher gasoline costs and a trot in wholesale energy prices amid falling ask and an lengthen in rooftop solar technology.

Underlying revenue for the twelve months to June 30 dropped 34 per cent to $537 million, at some stage within the company’s $500 million-$580 million guidance vary.

AGL on Thursday warned of a further financial hit, with underlying revenue for the most modern financial twelve months expected to drop to between $220 million and $340 million.

The lower guidance displays a “further arena subject step down” in wholesale electricity earnings and the influence to wholesale gasoline margins, the company says.

Shares within the company slumped on the recordsdata. By 1215 AEST, the stock became down 3.8 per cent to $7.31 in a firm Australian market.

The country’s greatest operator of coal-fired energy vegetation has been buffeted by the influence of coronavirus lockdowns on electricity ask and rising renewable vitality technology.

Earlier this twelve months, the company announced it would possibly per chance per chance most likely perchance split into two.

Below the idea, the most critical retail enterprise will most most likely be demerged into a brand current company, AGL Australia, below Christine Corbett, while intervening time CEO Graeme Hunt will lead a brand current coal-focused generator Accel Energy.

Accel will make a choice a 15-20 per cent stake in AGL Australia.

AGL Energy on Thursday stated it became heading within the appropriate course to enforce the proposed demerger within the fourth quarter of FY22, arena to regulatary and shareholder approvals.

The corporate declared a final unfranked dividend of 34 cents per share, down from 51 cents closing twelve months.

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AGL slumps to $2b loss, more pain ahead