AGL Energy slumps to $1.26 billion full-year loss

The news: Power producer and retailer AGL Energy has posted an annual loss due to previously flagged writedowns but its underlying profit has jumped.

The numbers: The company reported a statutory net loss of $1.26 billion for the year to 30 June after recording a $860 million profit a year earlier. However, underlying profit rose 25% to $281 million, in line with an upgrade issued in June. AGL will pay an unfranked final dividend of 23 cents a share.

The context: AGL, Australia's largest electricity generator, took an impairment charge of around $700 million after bringing forward the closure date of its Loy Yang A coal power generator in Victoria. It also registered a hit of $890 million on the value of hedging contracts. The company expects underlying profit for FY24 to more than double to $580 million-$780 million after it recently lifted electricity prices by up to 30%.

What they said: "We saw a significant improvement in plant availability as the year progressed, which contributed to the increase in earnings compared with FY22, along with the strong performance of our well risk managed gas portfolio and customer business," AGL Managing Director and CEO, Damien Nicks, said.