Скачать или смотреть AGL records sharp drop in underlying profits

Energy retailer AGL has recorded a 22 per cent fall in underlying profits, with Australia’s largest power generator warning underlying profit could be cut by a third next year.

The company’s shares endured its biggest fall since the global financial crisis, plummeting nine per cent.

AGL recorded a drop in its underlying 2020 profit to $816m from $1.04bn.

CEO Brett Redman told Sky News COVID-19 has exacerbated existing "headwinds" the company has been facing.

"We have been talking to the market for probably a couple of years now that we were expecting a headwinds to our business, headwinds to our markets which were all about pushing price down," he said.

"So good for customer, a little hard for business, but good for customer.

"While we have been predicting this shift, what COVID has done has got us to the future faster.

"As the virus came in, we saw it having some effect on demand, although not as much as you think, demand has held up reasonably well, but some softness, but it also reduced confidence in the market.

That drove a much more rapid fall in wholesale prices on the electricity side, and then on the gas side, you have seen globally a big drop in demand which has driven a much larger drop in price as well."