AGL earnings preview: why are earnings expected to be lower?
AGL has had a roller coaster of a year as a proposed de-merger was dramatically scrapped in May and was soon followed by difficult conditions in the national electricity market.
AGL Energy Limited (ASX: AGL) release date:
AGL Energy Ltd is expected to release its earnings report on Friday, August 19, 2022.
AGL Energy Limited earnings expectation:
- EPS: 0.368
- DPS: 0.216
AGL Energy Limited updated its earnings guidance for the 21/22 financial year in May as follows:
- Underlying EBITDA for FY22 to be between $1,230 and $1,300 million
- Underlying Profit profit after tax for FY22 to be between $220 and $270 million
AGL Energy Limited earnings key watch:
AGL has had an eventful year as a proposed de-merger was dramatically scrapped in May and unstable electrical prices in the national electricity market made market conditions difficult.
In the first half of the financial year, AGL’s lower earnings had already raised a red flag for the FY22 results as the underlying EBITDA was down 21% to $723 million while the underlying NPAT was down 41%. For the second half of the year, earnings are expected to be even lower due to increased capacity costs to cover periods of peak electricity demand which are higher in the summer months.
After a turbulent year, investors urgently require a clear road map for the earnings outlook. The imminent challenge for AGL is to refresh its board with a new chief executive. Hopefully the new leadership will be able to clear the mess and settle a new direction after the abortion of demerging.
AGL’s dividend will be another key focus for this reporting season as AGL paid an interim dividend of 16 cents per share in the first half of the financial year, a reduction from the 41 cents per share from the previous year. If AGL pays out a dividend of 16 cents for FY22, it would be the first decrease by almost 60%, the lowest level in five years.
Share price and technical analysis
By the end of August 12, the price of AGL seems to have found support from the intersection of the 20- and 100-days moving average around the early July high ($8.44). As it reverses course ahead of the June peak ($8.656), the successful attempts to beak level could open the door to the year-high region. On the flip side, a breakthrough in the supporting trend line may pull the price back to the $8.28 level.
AGL Energy Limited daily chart
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.