AGL Energy Limited (ASX: AGL) has an incredible lineage that spans three different centuries. Originally formed as The Australian Gas Light Company in 1837, what we know as AGL Energy today has weathered many storms. As you might suspect, that means the AGL share price has had its fair share of highs and lows.
While its listed life began in 1871 on the Sydney Stock Exchange, the company went on to hit the ASX in 2006. Since then, investors have been a part of a bumpy ride. Over the course of the past 12 months, the AGL share price has eroded 53.4% in value.
Despite its long life on the markets, many would be surprised to know that AGL's worst-ever day on the ASX wasn't all too long ago.
AGL share price's worst day ever
The worst day for the AGL share price occurred only a little more than a month ago on June 30, when it fell 9.99%.
It began with an announcement before the market opened. The announcement was titled 'Update on demerger, dividend actions and earnings guidance'.
Investors weren't too pleased with what was contained in that release. The company provided more detail around its intention to demerge and be listed as two separate entities on the ASX — which all seemed fairly straightforward.
Where it might have gone off track for shareholders is when AGL mentioned it would be terminating its special dividend program. This meant the scrapping of the additional 25% of underlying profit after tax paid out in the form of a dividend in FY21 and FY22. The news was likely a massive blow to income-focused investors of AGL, leading to a selloff in the share price.
In short, the board made the decision to preserve roughly $400 million to $500 million in cash heading into the demerger. Though it sounds like a good plan on paper, shareholders know not everything goes to plan.
Adding another blow to the AGL share price, it was revealed the company also expected underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be within the lower half of its previous guidance.
Furthermore, for investors that had been hoping for a turnaround in the business, water was poured on that fire. AGL suggested a "material step-down" in earnings for FY22 as lower wholesale electricity prices of the past two years are realised.
From then to now
Since the AGL share price suffered its worst day on the ASX things haven't gotten much better. On 12 August 2021, the company reported its full-year results for FY21, which was met with disappointment.
According to the release, AGL's revenue dropped 10% compared to the prior year and underlying profits sank 33.5% to $537 million.
Perhaps expectedly, the AGL share price has gone on to fall a further 11% since its worst day.
At the time of writing, shares are swapping hands at $7.19 apiece, a fall of 0.14% on yesterday's closing price.
