AGL hikes revenue forecast after summer demand

AGL Macquarie coal plant (HESTA)
AGL's Macquarie power station

Australia’s top energy producer AGL Energy has upgraded its earnings forecast following strong summer demand and operating performance, with shares soaring to a five-month high.

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According to Reuters, AGL now expects annual underlying net profit after tax between $760 million and $810 million—a marked increase from $281 million recorded in 2023. The company had earlier forecast underlying annual underlying net profit after tax between $680 million and $780 million.

AGL shares shot up from 7.2% to $9.99—their highest since November 2023.

AGL managing director and CEO Damien Nicks said, “Our first half result was driven by improved fleet availability and flexibility, more stable market conditions, along with the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions.

“This improved result, compared with the challenges experienced in the first half of the prior year, which was impacted by volatile energy market conditions and forced plant outages, supports the ongoing investment in our transition. The increase in earnings from our well risk managed gas portfolio and customer business also contributed to this result, despite overall lower customer demand.

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“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.”

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