AGL Energy Ltd has recorded statutory profit after tax of $97 million for the six months ending December 31, 2024 (1H25), reflecting significant one-off costs and provisions.
The result includes $245 million in significant items, comprising a $165 million increase in onerous contract provisions, $45 million in retail transformation costs and a $31 million negative movement in the fair value of financial instruments.
On an underlying basis, AGL’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $1.07 billion, a marginal 1% decline from the prior corresponding period. Underlying net profit after tax also fell 7% year-on-year to $373 million.
Despite the decline in earnings, the company has declared a fully franked interim dividend of 23 cents per share.
AGL has also refined its full-year FY25 earnings guidance, narrowing the projected range for underlying EBITDA to between $1.94 billion and $2.14 billion, from the previous range of $1.87 billion to $2.17 billion.
Similarly, the company now expects underlying net profit after tax to fall between $580 million and $710 million, compared to the earlier forecast range of $530 million to $730 million.
The results highlight ongoing financial headwinds for AGL, with restructuring costs and contract provisions impacting statutory earnings. However, the company’s revised guidance suggests a more defined outlook for the remainder of the financial year.
"We delivered a strong first half result in line with expectations, driven by the flexibility of our generation fleet and its ability to capture higher realised electricity pricing. This included continued strong earnings from our growing battery portfolio," AGL managing director and CEO Damien Nicks said
"As anticipated, the result was impacted by increased consumer customer margin compression due to lower customer pricing and heightened market competition.
"Our increased investment in the growth of the business and reliability and flexibility of our assets, combined with the impact of inflation, led to higher operating costs and depreciation and amortisation."
"Importantly, these results mean we are on track to deliver full-year earnings in line with our FY25 guidance range, and the reinstatement of a fully franked dividend for our shareholders."