AGL to MCY: How have these ASX power shares fared YTD?

Highlights

• Power firms play an important role in the economic success of a country.

• In the past few days, several ASX power companies have declared their financial results for FY22.

• Most have posted decent earnings so far.

Firms operating in the power sector play an important role in the economic success of any country. These provide many resources to operate the industrial framework of an economy. In the past few days, several ASX power companies have declared their financial results for the full year 2022. Most have posted decent earnings so far, buoyed by demand for energy. The past couple of years were negatively impacted due to the COVID-19 pandemic.

Meanwhile, the ASX 200 Energy Index (ASX:XEJ) has risen over 34% so far this year. On the other hand, the ASX 200 has fallen by nearly 8% on a year-to-date (YTD) basis.

Here we discuss how a few major ASX-listed power companies have performed on a YTD basis on the stock market.

AGL Energy Ltd (ASX:AGL)

AGL Energy generates and retails both electricity and gas. For the year ending 30 June 2022, AGL Energy’s underlying profit after tax (PAT) and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) declined sharply. In FY22, the underlying profit after tax (PAT) slipped 58% to AU$225 million on FY21.

The board of AGL announced a final distribution of 10 cents per share. The final dividend is unfranked. The tentative payment date is 27 September 2022. AGL didn’t share any guidance for the financial year 2023.

AGL Energy’s share price rose over 26% on a year-to-date (YTD) basis (as of closing on 26 August 2022, 2:40 PM (AEST)). In the past 12 months, the stock has risen nearly 11%. The shares have surged nearly 5% in the past six months.

APA Group (ASX:APA)

APA Group owns and operates natural gas and electricity assets. The company was in news earlier this week after the company’s CEO and managing director Rob Wheals announced that he would step down from the top job at the end of September.

The company reported revenue growth of 4.3% (Y-O-Y) in FY22. APA Group’s full-year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.9% from AU$1.629 billion in the financial year 2021. The board of the company also reported a 3.9% dividend growth to 53 cents per share.

APA Group’s share price rose over 10% on a YTD basis. In the past 12 months, the stock rose over 20%. The shares have surged nearly 12% in the past six months.

Genex Power Ltd (ASX:GNX)

Genex Power is a power generation company, which recently announced that it had received a revised bid from Skip Essential Infrastructure Fund and Stonepeak Partners for the acquisition of its shares for 25 cents.

The revised proposal follows the consortium’s initial takeover bid of 23 cents. The new offer price represents a 92% premium to a three-month volume average price of 13 cents.

Genex Power’s share price rose over 17% on a YTD basis. In the past 12 months, the stock has risen by over 2%. The shares have surged nearly 68% in the past six months.

Origin Energy Ltd (ASX:ORG)

Origin Energy is engaged in electricity generation.

Origin Energy’s underlying profit rose 30% in FY22. The company’s underlying EBITDA surged to AU$2,114 million from AU$2,036 million in the financial year 2021. Origin Energy’s statutory loss for the year stood at AU$1,429 million. The adjusted net debt dipped to AU$2,838 million compared to AU$4,639 million in FY21.

Origin CEO Frank Calabria said, “The value of Origin’s integrated business is evident in this result, as higher commodity prices drove strong earnings from Integrated Gas, helping to offset lower earnings from Energy Markets as it grappled with an almost unparalleled year in terms of market conditions.

Origin Energy’s share price rose nearly 19% on a YTD basis. In the past 12 months, the stock has risen nearly 44%. The shares have surged nearly 12% in the past six months.

Genesis Energy Ltd (ASX:GNE)

Genesis is a New Zealand-based company focused on electricity generation. The company reported a strong performance in FY22, the highest-ever customer satisfaction score and a fall in carbon emissions.

Genesis reported a 24% rise (Y-O-Y) EBITDAF of AU$440 million for the year ended 30 June 2022. EBITDAF means earnings before interest, tax, depreciation, amortisation, fair value movements of financial instruments, investment costs, realisations and impairments. The company’s net profit rose to AU$222 million. The board of Genesis declared a final dividend of 8.9 cents per share, bringing total FY22 dividends to 17.6 cents per share.

“Our fixed price gas supply contracts and coal purchased well in advance of global supply issues have cushioned New Zealand’s electricity system from price shocks seen elsewhere in the world. More recent rainfall has also added to a healthy level of hydro energy for the rest of 2022,” said Chief Executive Officer Marc England.

Genesis Energy’s share price fell over 5% on a YTD basis. In the past 12 months, the stock has fallen by over 19%. The shares have surged nearly 3% in the past six months.

Mercury NZ Ltd (ASX:MCY)

Mercury NZ is a New Zealand-based electricity generator. Mercury reported AU$581 million EBITDAF in FY22. Operational expenditure was AU$230 million, up AU$40 million on previous year. The company’s net profit after tax (NPAT) rose by AU$469 million to AU$328 million on previous year. The board of the company announced a fully imputed final dividend of 12 cents per share, bringing the full-year ordinary dividend to 20 cents per share, up 17.6% from 17 cents last year.

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“This has been a year like no other. In less than 12 months, we have become New Zealand’s largest wind generator after having no operating wind generation at the start of the year. We’ve also become New Zealand’s largest electricity retailer and have welcomed 570 new colleagues to the company,” said Mercury Chief Executive Officer, Vince Hawksworth.

Mercury NZ’s share price fell over 6% on a YTD basis. In the past 12 months, the stock has fallen over 15%. The shares have surged nearly 2% in the past six months.

NOTE: Investors should conduct extensive research before picking up shares since stock markets tend to fluctuate. Conducting a thorough research before taking any stock market exposure is necessary as sinusoidal market trends are evident.