IPP
, Australia
Photo from AGL website.

AGL underlying profit down 58% YoY in FY2022

A drop in trading and origination electricity earnings contributed to this.

AGL posted a 58% year-on-year decline in underlying profit after tax to around $155.6m (A$225m) during the financial year 2022 (FY22) which ended on 30 June due to the decline in trading and origination electricity earnings, and increased capacity costs during peak demand.

In a statement, AGL said its underlying earnings before interest, taxes, depreciation and amortisation were down 27% YoY to around $842.2m (A$1.2b).

The lower earnings in trading and origination electricity were due to the lower realised contracted and wholesale customer prices. The increased costs of capacity during peak electricity demand periods and the absence of the Loy Yan Unit 2 proceeds also had an impact on AGL’s profit, said Managing Director and CEO Graeme Hunt.

“Other factors that negatively impacted the result included planned and unplanned plant outages, unprecedented market volatility and suspension, milder weather, increased residential solar volumes and margin compression via customer switching,” Hunt said.

READ MORE: AGL expands green hydrogen study in Hunter Energy hub

He added that this was partly offset by decreased operating costs which were down by over $103.7m (A$150m) in targeted operating costs compared with FY20. AGL is also on track with its target of a $69.1m (A$100m) reduction in sustaining capital expenditure by end-2023.

“AGL’s FY22 results delivered an Underlying Profit after tax within guidance, reflecting the resilience of AGL’s underlying business against a backdrop of challenging energy industry and market conditions that have intensified in the second half,” Hunt said.

The company’s total generation volumes were broadly flat at around 40,755 gigawatt-hours.

$1 = A$1.45

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Laos poised to be Southeast Asia’s key electricity supplier
This comes amidst the development the Laos-Thailand-Malaysia-Singapore Power Integration Project.
Power Utility
US sanctions hit Iran’s clean energy sector: report
These have made it challenging for Iran to secure debt and equity finance amongst others. 
APAC to generate lion’s share of world’s energy by 2030
The region is expected to account for 56% of the world’s energy in the  next decade.
Power Utility
Wind energy industry needs 570,000 technicians by 2026
This comes as the global onshore and offshore wind increase in size by 67%.
People

Exclusives

Why Philippines’ EDC will not fire up coal
The devastating effects of climate change led the company to develop REs only.
Environment
Indonesia’s Pertamina signs up for hydrogen development
Pertamina is set to produce green and blue hydrogen as part of its clean energy target in 2030.