The AGL Energy Limited (ASX: AGL) share price is on the move on Thursday.
In morning trade, the energy giant's shares are up 15% to $9.16.
This follows the release of the company's half-year results.
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AGL share price rocket on stunning profit growth
Here's a summary of how it performed for the six months ended 31 December:
- Revenue down 20.8% to $6,183 million
- Underlying profit after tax up 358.6% to $399 million
- Underlying earnings per share up 359.7% to 59.3 cents
- Interim dividend up 225% to 26 cents per share
What happened during the half?
As mentioned above, AGL's revenue fell 20.8% to $6,183 million during the half. This reflects a 12.7% increase in Customer Markets revenue, which was offset by a 33% decline in Integrated Energy revenue.
But that couldn't stop the company's underlying profit after tax from increasing 358.6% to $399 million. Management advised that this reflects improved fleet availability and flexibility, more stable market conditions, and the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions.
Whereas in the prior corresponding period, the company battled with volatile energy market conditions and forced plant outages.
In addition, management notes that Trading and Origination Gas and Consumer gross margin also increased despite overall lower customer demand.
Overall, this allow AGL to declare an interim dividend of 26 cents per share, which is up from 8 cents per share a year earlier. It will be paid to shareholders next month on 22 March.
Management commentary
AGL's managing director and CEO, Damien Nicks, was pleased with the half. He said:
Our first half result was driven by improved fleet availability and flexibility, more stable market conditions, along with the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions.
This improved result, compared with the challenges experienced in the first half of the prior year, which was impacted by volatile energy market conditions and forced plant outages, supports the ongoing investment in our transition. The increase in earnings from our well risk managed gas portfolio and customer business also contributed to this result, despite overall lower customer demand.
Outlook
Potentially giving the AGL share price an added boost today was its guidance for FY 2024. Management has narrow its guidance to towards the upper end of its previous range.
It expects underlying EBITDA between $2,025 million and $2,175 million (previously between $1,875 million and $2,175 million) and underlying net profit between $680 million and $780 million (previously between $580 million and $780 million).
The AGL share price is now up 15% over the last 12 months.
