What's going wrong for the AGL (ASX:AGL) share price in November?

The energy provider's shares have been having a difficult time of late. We take a closer look

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The AGL Energy Limited (ASX: AGL) share price has continued its declining trend, falling to near multi-decade lows this month. Investors have continued to dump the energy company's shares, leading to a 12% loss in the past month alone.

During early morning trade, AGL shares are adding more pain to shareholder portfolios, down 0.55% to $5.43 apiece.

Group of thoughtful business people with eyeglasses reading documents in the office.

Image source: Getty Images

What's the go with AGL?

It's been a relatively quiet couple of months for AGL with the last market-sensitive news out of the company being its full-year results in August.

However, a catalyst dragging down the AGL share price might be tough conditions for the national electricity market along with unstable electricity prices.

The company previously noted that a sharp decline in wholesale prices for electricity and renewable energy certificates affected its financial performance. AGL regarded the 2021 financial year as one of the most difficult energy markets on record.

In addition, the increased demand to decarbonise its operations has impacted Australia's largest carbon emitter. Nonetheless, management plans to turn around its fortunes for AGL to become a more agile business towards renewable energy.

At its annual general meeting (AGM) in September, AGL recognised the disappointing result and aimed to change its fortunes around.

As such, management has focused on reducing operating costs by $150 million by the end of FY22. Also, the sale of non-core assets for $400 million by the end of FY22 is expected to provide ample firepower to the company's balance sheet. The AGL share price gained 3% on the back of this news.

More than half the company's shareholders voted in favour of AGL setting emission targets ahead of its demerger. This is in accordance with the Paris Agreement which sets out a global framework to combat climate change.

The soon-to-close Liddell coal-fired power station could be a sign of greener pastures. AGL plans to transform the site with a hydro and solar energy facility after Liddell's shutdown in 2023.

The company is aiming to split into two separate businesses by June 2022. They are bulk power generator, AGL Australia, and a carbon-neutral energy retailer, Accel Energy.

About the AGL share price

In 2021, the AGL share price has continued to plummet in value, losing around 55% for investors. When looking at the last 12 months, its shares are down almost 60%.

Based on valuation metrics, AGL presides a market capitalisation of approximately $3.59 billion, with approximately 658.38 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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