Why is AGL down 4% today?, page-10

You make a good point on ORG..

From AFR -
Power companies that are generators as well as retailers are now enjoying higher profits and a much happier outlook.

Investors are expecting strong results and profit forecasts from both AGL Energy next Thursday and Origin Energy a week later, for example.

It’s why AGL’s share price has surged over the past six months.But moves in Origin’s share price have been limited because it is under a protracted takeover offer from Canada’s Brookfield Asset Management and US-based EIG Partners at a price of $8.90 a share – which seemed a comfortable premium at the time it was agreed upon, when market conditions seemed less favourable.Brookfield is also promoting its ability to spend between $20 billion and $30 billion in developing up to 14 gigawatts of new renewables and storage assets over the next decade – a level Origin says it couldn’t otherwise match.Prominent stockbroker Angus Aitken is not the only outsider suggesting spending this amount over that time frame is just not possible given the “glacial” place of new transmission networks. He also points to the inadequate value the bid places on Origin’s gas assets.

And although no one in government is saying so out loud, the delay in linking renewables to the grid makes it more likely the NSW government will try to subsidise Origin to keep its Eraring coal-fired power station open past its scheduled closure date of 2025.