AGL Reports $1.07 Billion Underlying EBITDA, Declares 23c Interim Dividend
AGL Energy reported a solid first half of FY25 with underlying EBITDA slightly down but maintained strong operational momentum, while narrowing its full-year earnings guidance and announcing key leadership changes.
- Statutory profit of $97 million with underlying EBITDA of $1,068 million, down 1%
- Narrowed FY25 guidance for underlying EBITDA and net profit after tax
- Declared fully franked interim dividend of 23 cents per share
- Progress in Retail Transformation and expansion of battery portfolio
- Board chair change and appointment of new auditor from FY26
Financial Performance and Earnings Outlook
AGL Energy Limited delivered its half-year results for the six months ending 31 December 2024, reporting a statutory profit after tax of $97 million. This figure was weighed down by significant non-cash items totaling $245 million, including onerous contract provisions and retail transformation costs. Underlying EBITDA stood at $1,068 million, a modest 1% decline compared to the same period last year, while underlying net profit after tax decreased by 7% to $373 million.
Despite these slight declines, AGL has narrowed its FY25 earnings guidance, signaling confidence in its operational trajectory. The company now expects underlying EBITDA between $1,935 million and $2,135 million, tightening the previous range, and underlying net profit after tax between $580 million and $710 million. This adjustment reflects a strong first half performance balanced against anticipated second half moderation due to seasonal demand shifts, ongoing competitive pressures, and increased depreciation and finance costs.
Operational Highlights and Strategic Progress
AGL’s operational metrics reveal a company focused on both safety and growth. The Total Injury Frequency Rate improved significantly to 2.8 per million hours worked, underscoring the effectiveness of safety initiatives. Customer services expanded to 4.5 million, with a positive Strategic Net Promoter Score of +3, indicating solid customer advocacy despite a competitive retail environment.
The company’s generation volumes remained steady at 15.9 TWh, supported by a flexible generation fleet that capitalized on higher electricity prices. Notably, AGL’s battery portfolio continues to grow, with the recent completion of a 20% strategic investment in Kaluza and the securing of a second virtual battery agreement with Neoen. The 500 MW Liddell Battery project remains on track for early 2026 operation, reinforcing AGL’s commitment to expanding its renewable and storage capabilities.
Retail Transformation and Customer Support Initiatives
AGL’s Retail Transformation program is delivering tangible benefits, including a 19% reduction in customer plans and operating cost efficiencies. The company has also been proactive in supporting customers through cost-of-living pressures, having deployed $75 million of its $90 million Customer Support Package alongside government bill relief programs totaling $915 million. These efforts highlight AGL’s focus on customer-centric solutions amid market challenges.
Leadership Changes and Governance Updates
In governance developments, AGL announced the stepping down of Patricia Mckenzie as Board Chair, with Miles George appointed as her successor. Additionally, the company will transition its auditor from Deloitte to PwC starting FY26, pending regulatory and shareholder approvals. On the executive front, COO Markus Brokhof will retire in September 2025 after a significant tenure contributing to AGL’s strategic transformation.
These leadership changes come at a pivotal time as AGL continues to reshape its Integrated Energy segment to manage increasing complexity and scale, positioning the company for the next phase of its energy transition journey.
Bottom Line?
AGL’s steady first half and strategic investments set the stage for navigating competitive pressures and accelerating its energy transition in FY25.
Questions in the middle?
- How will increased competition and margin compression impact AGL’s retail segment in the second half?
- What are the implications of the leadership changes for AGL’s strategic direction and operational execution?
- How will the expansion of AGL’s battery portfolio influence its market position and earnings stability?
