Oz AGL's 1H Underlying Profit Up 10%

Australian gas and power retailer AGL Energy February 7 reported a 10% year-on-year rise in underlying profit for six months to December 31 (1H2019) owing to strong margin growth in wholesale markets.

AGL’s 1H underlying profit, which excludes one-off items, was A$537mn (US$382mn) as against A$487mn during the same period in the previous year, the company said.

Statutory profit after tax of A$290mn was down 53% on year on the prior corresponding priod owing to a negative movement in the fair value of financial instruments, AGL said.

Total revenue was A$6.33bn, down 1.8% year-on-year, driven by decreased sales volumes in retail market and lower pool generation sales in wholesale market, AGL said. Retail market revenue was also impacted by customers switching to lower priced products, it said.

AGL has maintained its forecast range for underlying profit of between A$970mn and A$1.07bn for the year ending June 30, 2019.