I agree its not terrible... but if they had not reversed 713m of the onerous contracts - it would have been a loss for the half.
I still feel it will be a red day as AGL was previously an attractive share for the un-informed expecting 6% or greater dividend yields.
I note that they have forecast that FY23 there will be onerous contract impairments (again)... so IMO - a bit of smoke and mirrors going on there 1.5b write off and now a 700m write back... interesting to see what the impairment is next half.
Pleasing to see that they have extended the coal supply agreement for Bayswater and Liddell out to 2028 - in line with anticipated closure of Liddell... should help ensure that coal plants can remain profitable.. as long as there are no additional major failures.
I also note that AGLs customers actions will also be forcing AGLs hand on the transition to renewables... 92% increase in customers who have opted for 100% renewable or carbon offset supply and also 41% increase in customer solar bundles
Positive that failed demerger costs will be 15m less than anticipated - shame they wasted the funds in the first place
AGL Price at posting:
$8.16 Sentiment: Hold Disclosure: Held
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