AGL Energy Limited (AGL) today reported a statutory net profit after tax of $218 million for the year ended 30 June 2015.
AGL’s Underlying Profit1 of $630 million was up 12.1% on FY14. Underlying Profit is the statutory net profit after tax adjusted for Significant Items and changes in the fair value of certain energy derivatives.
AGL has declared a final dividend of 34.0 cents per share, which brings the total dividend for the year to 64.0 cents. The final dividend will be fully franked.
Commenting on the full year results, AGL Managing Director, Andy Vesey, said:
“In recent months, AGL has made significant strides implementing a strategic transformation which has revitalised the leadership team and is creating an anticipatory culture.
“AGL has an important role to play in transitioning Australia’s electricity generation industry to a lower carbon future. We are already at the forefront of this change having built approximately $2 billion of renewable generation and committed not to extend the operating life of our coal-fired power stations.
“The Macquarie Generation acquisition, which completed in early September 2014, has been a major driver of the significant improvement in profit and operational cash flow, and more than offset the effect of removal of the carbon tax,” said Mr Vesey.
- Revenue $10,678 million, up 2.2%
- Statutory NPAT $218 million, down 61.8%
- Underlying Profit After Tax $630 million, up 12.1%
- Statutory EPS 33.3 cents per share, down 66.1%
- Underlying EPS 96.4 cents per share, down 0.5%
- Underlying Operating cash flow before interest & tax $1,527 million, up $378 million
- 2015 final dividend of 34.0 cents per share (100% franked), up 1 cent per share
The statutory net profit after tax for FY15 was down 61.8% on FY14 largely due to higher Significant Items in the current financial year. Significant Items of $578 million included costs associated with the Macquarie Generation acquisition of $117 million and a $435 million impairment of Upstream Gas assets.
Dividends: AGL has declared a fully franked final dividend of 34.0 cents per share.
Shares will commence trading ex-dividend on 25 August 2015. The record date to determine shareholders’ entitlements to the final dividend is 27 August 2015 with the dividend being paid to shareholders on 24 September 2015.
The AGL Dividend Reinvestment Plan will operate in respect of the dividend. Shares will be allotted at no discount to the simple average of the daily weighted average market price at which AGL’s ordinary shares are traded on the ASX during each of the 10 trading days commencing on 31 August 2015.
No new shares will be issued to satisfy the DRP but will be acquired on market. This is a change in approach compared with previous years.
Outlook: AGL has previously advised the market that it will improve operational efficiency and is targeting around $200 million real reduction in its normalised operating cost base, and around $100 million real reduction in sustaining capital expenditure by FY17. A significant portion of this cost improvements is expected to be achieved by 30 June 2016.
In addition, AGL is targeting around $1 billion in non-strategic and under-performing asset divestments by the end of FY17. The sale of AGL’s 50 percent interest in the Macarthur Wind Farm is expected to be completed in the first half of FY16. Working capital reductions of around $200 million by the end of FY17 are also targeted.
Restructuring costs associated with the organisation restructure of approximately $20 million pre-tax are expected to be booked as Significant Items in FY16.
AGL will provide formal guidance of its FY16 earnings outlook at its Annual General Meeting on 30 September 2015.
Conference call: A webcast and conference call will be held today to discuss AGL’s 2015 profit result.
A copy of the investor presentation is attached.
eWebcast via: www.aglinvestor.com
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1. Underlying Profit has been presented with reference to the Australian Securities and Investment Commission Regulatory Guide 230 “Disclosing non-IFRS financial information” issued in December 2011. AGL’s policy for reporting Underlying Profit is consistent with this guidance. The Directors have had the consistency of the application of the policy reviewed by AGL’s external auditors.
AGL is one of Australia’s leading integrated energy companies. It is taking action to responsibly reduce its greenhouse gas emissions while providing secure and affordable energy to its customers. Drawing on over 175 years of experience, AGL serves its customers throughout eastern Australia with meeting their energy requirements, including gas, electricity, solar PV and related products and services. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, solar, landfill gas and biomass.