The AGL Energy Ltd (ASX: AGL) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy provider closed yesterday trading for $10.81. In morning trade on Wednesday, shares are changing hands for $11.23 apiece, up 3.9%.
For some context, the ASX 200 is up 0.4% at this same time.
This outperformance comes following the release of AGL's full-year financial results for the 12 months ending 30 June (FY 2024).
Read on for the highlights.
Image source: Getty Images
AGL share price leaps on return to full-year profit
- Statutory profit of $711 million, up from a loss of $1.3 billion in FY 2023
- Underlying net profit after tax (NPAT) of $812 million, up 189% year on year
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.22 billion, up 63% on FY 2023
- Final dividend of 35 cents per share unfranked, up 52% from last year
What else happened with AGL during FY 2024?
The AGL share price is marching higher with the company reporting total customer services over the financial year of 4.5 million, up 211,000 from the prior year.
Total power generation volumes were 8% lower than FY 2023, which was mostly due to shuttering the last three units at Liddell Power Station in April 2023.
With ongoing cost of living pressures impacting its clients, AGL also increased its two-year Customer Support Package by $20 million to $90 million and accelerated the delivery of the program, with $6 million provided to customers in FY 2024.
The financial year just past also saw AGL enter a strategic partnership and take a 20% equity investment in Kaluza as part of its Retail Transformation Program. AGL also agreed to make a $150 million investment in Kaluza to fund its next phase of growth.
Commenting on that partnership, AGL CEO Damien Nicks said:
Our world-class technology, enabled by Kaluza and alongside other industry partnerships, will allow us to develop a future suite of simplified products that will seamlessly integrate and improve customer experience. This will be complemented by a streamlined operating model to help us deliver superior speed to market and a reduction in costs.
The FY 2024 final dividend is unfranked, however AGL said it intends to begin paying partially franked dividends from the FY 2025 interim dividend. The final dividend will be paid on 24 September.
The total dividend for FY 2024 comes out to 61 cents per share unfranked.
As at 30 June, AGL had $1.70 billion of cash and undrawn committed debt facilities available.
What did management say?
Commenting on the results boosting the AGL share price today, Nicks said:
Our strong full year results were driven by significantly improved fleet availability and portfolio flexibility, including a solid earnings contribution from the Torrens Island Battery in its first nine months of operation.
We saw more stable market conditions throughout the financial year, along with the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes, trading and contract positions.
Margin growth also contributed to this result as we continued to drive value within our Customer Markets business.
What's next?
Looking at what could impact the AGL share price in the year ahead, the company provided FY 2025 earnings guidance for underlying EBITDA between $1.87 and $2.17 billion. Underlying net profit is forecast to come in between $530 and $730 million.
The forecast decrease in AGL's earnings for the financial year ahead comes amid lower wholesale electricity prices and shrinking consumer sales margins.
AGL share price snapshot
With today's intraday gains factored in, the AGL share price is up 15.8% so far in 2024.
