AGL Energy has bumped up its profit forecast after reporting a four-fold increase in half-year earnings on the back of higher electricity prices, with shares rising as much as 15% following the announcement.
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The news comes on the back of a string of prolonged power plant outages and volatile energy markets in preceding year.
“We expect this positive momentum to continue into the second half of FY24 and we are on track to deliver full-year earnings in line with our FY24 guidance range,” AGL CEO Damien Nicks said in a statement.
AGL has updated its underlying profit forecast to range between $680 million and $780 million for FY24, exceeding analysts’ forecasts.
“Investors will note that despite moderating pricing in recent months following a period of mild weather/lower than expected grid demand, AGL’s longer-duration contract portfolio provides some insulation from these factors,” UBS Global analysts said.
AGL has declared an interim dividend of 26c per share—over three times the previous financial year’s payout.
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The company said it was on track to deliver on its strategy to add 12GW of firming and renewables capacity by 2036.
