Operating segments reclassification
AGL Energy Limited (AGL) today advises that it is amending the basis for segment reporting to align it with the organisational structure announced on 16 April 2015 and the subsequent review and restructure of the Upstream Gas business.
This change is in accordance with AASB 8, which requires companies to report segmental information on a similar basis as is used internally by management for reviewing segment performance. The revised segment reporting will commence with the financial results for the year ended 30 June 2015 to be released on 12 August 2015.
The previous segments were: Retail Energy, Merchant Energy, Upstream Gas, Investments and Centrally Managed Expenses.
The new segments are: Energy Markets, Group Operations, New Energy, Investments and Centrally Managed Expenses.
There is no change to the reported profit in any period, only movements between segments. To facilitate comparisons with performance in prior periods, AGL has provided the historical segment data and reconciliations in appendices to this release.
Consumer Market metrics
The change in segment reporting necessitates a change to the key metrics previously reported. Metrics for the Consumer Market business within Energy Markets will replace the previously reported metrics for the Retail Energy business unit. Restatement of the prior period comparatives is provided in Appendix 2.
Portfolio Market reporting
In its financial results for the six months ended 31 December 2014, AGL introduced additional reporting for the Merchant Energy business. With the change in the segment reporting, this business unit is now split between Energy Markets and Group Operations. There is no major change to the methodology used to calculate key metrics (e.g. $/MWh). However, the metrics have been expanded to include Consumer Market and Business Customers Gross Margin. Prior period comparatives are included in Appendix 4.
AGL is one of Australia's leading integrated energy companies and is the largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. 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, landfill gas and biomass. AGL is taking action toward creating a sustainable energy future for investors, communities and customers.