.jpg)
1 hour ago
2
Article content
(Bloomberg) — AGL Energy Ltd. shares advanced the most in more than two years after Australia’s biggest electricity generator reported steady earnings despite reduced market volatility and announced the divestment of its telecommunications business.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Shares jumped as much as 8.3% in Sydney. Revenue slipped 0.9% from a year earlier, while underlying profit after tax fell 6.4% in the six months through December, as higher fleet availability and strong battery performance helped offset lower market volatility, the company said.
Article content
Article content
Article content
“The outcome highlights the upside of fleet reliability, cost control and portfolio optimization allowing AGL to achieve strong realized pricing through subdued conditions,” Citigroup Inc. analyst Tom Wallington said in a note. “The result eliminates our concerns heading into the result, and reinforces the earnings quality and resilience of AGL’s flexible thermal portfolio.”
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
AGL also said it entered into a binding contract to sell its telecommunications customer contracts to Aussie Broadband Ltd. for A$115 million ($81.3 million) in equity. It will seek to cut net operating costs by A$50 million in the financial year that ends June 2027.
Article content
“That’s about simplifying our business and really focusing on the energy transition, but at the same time, ensuring we have a great product that we can still brand through AGL for our customers,” AGL Chief Executive Officer Damien Nicks told Bloomberg News in an interview.
Article content
Shares traded at A$9.475 as of 11:47 a.m. in Sydney.
Article content
(Updates with comments from CEO interview in fifth paragraph.)
Article content
Advertisement 1
English (US)