Five things to watch at AGL’s strategy day

Investor relations is much easier when you’re making money for shareholders – just ask AGL Energy.

The more strategic investors are also thinking about AGL’s big retail business, and whether the company still thinks its future could be in selling telecommunications or other services alongside electricity and gas. Analysts expected AGL’s EBITDA to be up about 10 per cent in FY23 and 35 per cent in FY24, according to Capital IQ consensus forecasts. Last year’s pressures – outages and higher coal and gas prices – have eased.

“Last year in winter, they had a lot of units with outages, so we will be looking to see how the maintenance programs for evolving the fleet reliability are going,” says Martin Currie portfolio manager Andrew Chambers.Funding the transitionTwenty-billion dollars has emerged as the benchmark for the big energy market players when talking about building renewables portfolios.

He’s tipping AGL to use its balance sheet to develop and own batteries at its old generation sites, or on AGL land, and renewables to be off-balance sheet. The new management team, which also includes chief customer officer Jo Egan and chief operating officer Markus Brokhof, will be on display. Brokhof is the only one to have been in his job for more than a year, and they’re still reasonably new to investors.Early signs are good, according to L1 Capital joint chief investment officer Raphael Lamm, whose fund is invested in AGL. “We’re very impressed with how the new management team has kicked off,” he says.

UBS’ Allen reckons AGL is unlikely to have a new distribution policy at the investor day – that’s something more likely to be announced at an annual general meeting. On his numbers, AGL could continue to pay out 75 per cent of its underlying profit as dividends, and still meet its capital expenditure requirements.AdvertisementAll the attention is on AGL’s wholesale business – that’s where the company makes most of its money in a good year.

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Queensland budget 2023: coal royalty boom funds $550 energy rebate, free kindergarten and a record surplusQueensland treasurer Cameron Dick says $10bn revenue windfall will help pay for the nation’s most generous energy relief scheme
Source: GuardianAus - 🏆 1. / 98 Read more »

'Don’t even want the conversation': Dutton slams Labor on energyPeter Dutton has hit out at Labor's energy policies, accusing them of 'switching off the old system before the new one's ready' as he warned of more cost of living pain for struggling households.
Source: SkyNewsAust - 🏆 7. / 78 Read more »

How families can save $300 a month on energy bills this winterAussie energy bills are set to take another hit. However, a few quick habit changes around the house can help you save hundreds of dollars this winter. 9News
Source: 9NewsAUS - 🏆 10. / 72 Read more »

How families can save $300 a month on energy bills this winterAussie energy bills are set to take another hit. However, a few quick habit changes around the house can help you save hundreds of dollars this winter. 9News
Source: 9NewsSyd - 🏆 23. / 51 Read more »

Donald Trump warns United States is in ‘very serious trouble’Former US president Donald Trump warns the United States is in “very serious trouble” as the country faces issues with inflation, energy and crime. “We were going to dominate the whole world with energy – make a fortune,” Mr Trump said during an address in New Jersey. “We were going to be paying off debt and lowering taxes at a level that nobody’s ever seen. “They come in and they ended it. “Murderers are allowed to roam the streets of our Democrat-run cities, unchecked.”
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Renewables push a ‘massive’ and ‘expensive’ experiment for AustraliaThe push to renewables is a massive and expensive experiment which is so far jeopardising Australia’s energy supply, according to Sky News host Chris Kenny.
Source: SkyNewsAust - 🏆 7. / 78 Read more »