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AGL Energy Ltd (ASX:AGL) has seen its share price climb more than 4% following the release of its full-year financial results for FY24. As one of Australia’s largest energy generators and retailers, AGL's latest performance metrics have garnered significant attention.
For the 12 months ending 30 June 2024, AGL reported impressive financial gains:
- Underlying EBITDA rose 63% to $2.2 billion.
- Underlying net profit after tax (NPAT) surged 189% to $812 million.
- Statutory net profit after tax reached $711 million.
- Final dividend increased by 52% to $0.35 per share.
- Full-year dividend rose by 97% to $0.61 per share.
The company also expanded its customer base to 4.5 million, an increase of 211,000 from the previous year. However, total power generation volumes decreased by 8% to 34.1 TWh, largely due to the closure of the last three units at Liddell Power Station in April 2023.
Strategic Developments
AGL's development pipeline nearly doubled to 6.2 GW since the release of its climate transition action plan in September 2022. The company is capitalizing on higher wholesale electricity prices from prior periods, which have positively impacted pricing outcomes, trading, and contract positions.
Additionally, AGL has entered into a binding agreement to acquire Firm Power and Terrain Solar for $250 million. Firm Power is a Battery Energy Storage System (BESS) developer with 21 projects underway, while Terrain Solar focuses on solar projects with six in development.
The acquisition aligns with AGL’s strategy to enhance its energy storage capabilities and expand its renewable energy projects. The company’s pipeline includes 6.1 GW of grid-scale BESS projects and 1.8 GW of solar projects, as well as a 250 MW onshore wind project in NSW.
Leadership Changes
AGL also announced that Chair Patricia McKenzie will retire after the release of the FY25 half-year result. Miles George has been appointed as Chair-elect.
Despite the strong performance in FY24, AGL projects a decline in profit for FY25. The company expects underlying EBITDA to be between $1.87 billion and $2.17 billion, with underlying NPAT forecasted to be between $530 million and $730 million.
The anticipated decline is attributed to several factors, including lower wholesale electricity prices, the roll-off of market volatility, consumer margin compression, and increased depreciation and amortisation. Despite this, AGL is focusing on productivity and business optimization to offset inflationary impacts and support its strategic growth initiatives.
The company’s investment in energy storage and transition initiatives is seen as a positive move for long-term sustainability, though short-term profit forecasts may temper investor enthusiasm.
