AGL PROFITS SOAR, CONSUMERS STRUGGLE WITH HIGH ENERGY PRICES

AGL PROFITS SOAR, CONSUMERS STRUGGLE WITH HIGH ENERGY PRICES

AGL (ASX: AGL) and its investors have a reason to smile following the energy group's FY17 results, but the same cannot be said for its customers as energy costs rise.

Yesterday, the Sydney-based AGL reported a profit of $539 million for the financial year, which is a far cry from just last year when it reported a loss of $408 million.

AGL hopes to return over $1 billion to investors over the next year, however Australian consumers will still be feeling the pinch of the rising cost of electricity bills.

In particular South Australia has been named among the states with the highest power prices in the world, according to Carbon and Energy Markets director Bruce Mountain.

CEO Andrew Vessey (pictured), who personally collected almost $7 million in pay for the year, says the results were tremendous given the state of the industry.

"Our FY17 results reflect the continued delivery of AGL's strategy as the energy sector undergoes significant change," says Vassey.

"We continue to support customers and to invest in a sustainable energy future."

"During the year, 80 per cent of residential and small business customers accessed discount products."

The energy group hopes to continue to develop strategies to increase access to low emissions energy markets for customers into FY18.

"AGL and its partners are progressing projects with a value of more than $2 billion to bring new, low emissions electricity generation and more competitive gas supply to the Australian market."

"We will also be investing in product and service innovation to empower customers and improve their energy experience."

The company declared a final dividend of 50 cents per share, 80 per cent franked.

At the time of writing, AGL shares are trading almost flat at $24.60.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Former AFL boss Gillon McLachlan to lead Tabcorp as new CEO

Former AFL boss Gillon McLachlan to lead Tabcorp as new CEO

After speculation was quashed that he would be joining Racing Victo...

Luxury fashion seller Azura hits profitability as AI plugs data gaps

Luxury fashion seller Azura hits profitability as AI plugs data gaps

An artificial intelligence (AI) overhaul has allowed Azura Fashion ...

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...