AGL Energy Limited (ASX: AGL) released its earnings for financial year 2021 (FY21) last week, to the detriment of its share price.
As The Motley Fool Australia reported at the time, the AGL share price slipped after the release of its annual report. It ended the day 5.53% lower than the previous session.
But AGL is just one of the ASX's big energy providers and comparing its results to those of its peers could be a useful exercise.
One obvious listed competitor to AGL is Origin Energy Ltd (ASX: ORG). While there are marked differences between the two energy companies, the demerger AGL is currently battling towards being one, they still tend to run in the same pack.
So, how do AGL's earnings stack up against those of Origin? Let's take a look.
AGL earnings report detailed a $2 billion loss
As mentioned above, the market reacted poorly to AGL's earnings. Here's a snapshot of how it performed during FY21:
- Revenue dropped 10% to $10.9 billion
- Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $1.66 billion –down 18% on that of FY20
- Statutory loss of around $2.05 billion
- Underlying profits of $537 million – FY20 saw $816 million of underlying profits
- 35-cent final dividend, 33% less than the final dividend of FY20
The day after AGL released its earnings, the company's share price regained some ground before falling once more. It's currently 5.9% lower than it was before AGL's release.
Let's see if Origin offered up any competition.
How does Origin's FY21 compare?
Origin didn't do much better during FY21.
Like AGL, Origin saw its share price drop after it released its earnings on Thursday. Origin's shares fell 4% on the back of its annual report.
However, Origin's shares bounced back on Friday to end the session 1.3% lower at Wednesday's close.
Here's how it performed:
- Revenue down 8% to around $1.2 billion
- Around $2 billion of underlying EBITDA – 35% less than in FY20
- Statutory loss of approximately $2.2 billion
- Underlying profit of $318 million – FY20 saw around $1.03 billion of underlying profits
- Unfranked 7.5 cent final dividend – 25% less than FY20's final dividend.
As you can see, there are some noticeable similarities between the two energy companies' financial years.
Most obviously, both AGL and Origin reported an earnings loss of more than $2 billion. They were both plagued by lower wholesale energy prices and lessening demand due to COVID-19.
However, AGL's revenue fell further than Origin's, and it cut its dividend more enthusiastically.
All in all, FY21 wasn't great for either AGL or Origin. Their significantly differing paths forward will likely make interesting viewing.
AGL share price snapshot
The AGL share price has been underperforming for a while.
As of Friday's close, it has dropped 41% year to date. It has also slipped 53% since this time last year.
Right now, shares in AGL are worth $7.15 apiece.
