Business Summary AGL Energy Limited (AGL) is an integrated energy company and owner, operator and developer of renewable energy generation in Australia. It has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas, solar and biomass. The Company has Three operating segments which are Energy Markets, Group Operations and Investments. Since Other not consider to be reportable segment of the company. Latest Research Deeper earnings trough, downgrading FY22 NPAT to $506m A deeper FY21 earnings trough — FY21 NPAT guidance of A$560-660m was well below Citi’s forecast of A$779m, largely due to gas book repricing being worse than feared and a higher cost base in Group Ops. Consensus had forecast A$710m. We now forecast A$596m and show our earnings bridge in Figure 1. For more information see full research report 14 Aug 2020. GICS - Utilities AGL Energy Limited ASX Code: AGL Price: $13.72 12 Mth Target Price: $14.49 Rating: Neutral Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 30 November 2020 $8,548m 623.0m $21.23 $12.46 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Neutral $14.49 2.4% 5.7% 8.1% Investment Fundamentals FYE 30 Jun 2020A 2021F 2022F 2023F Profit $m 816.0 596.0 506.0 633.0 Profit (norm)* $m 816.0 596.0 506.0 633.0 EPS* ¢ 127.0 96.0 81.0 102.0 EPS Growth % -21.1 -24.4 -15.6 25.9 P/E* x 11.1 14.7 17.5 13.9 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 98.0 96.0 81.0 76.0 Yield % 6.9 6.8 5.7 5.4 Franking % 80.0 0.0 0.0 80.0 * Adjusted for goodwill and unusual items Source: Based on Citi estimates Share Price Chart Total Return on $10,000 Investment
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ASX Code: AGL Price: $15.32 12 Mth Target Price: $17.68 Rating: … · For more information see full research report 14 Aug 2020. GICS - Utilities AGL Energy Limited ASX Code: AGL
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Business SummaryAGL Energy Limited (AGL) is an integrated energy company and owner,operator and developer of renewable energy generation in Australia. It has adiverse power generation portfolio including base, peaking and intermediategeneration plants, spread across traditional thermal generation as well asrenewable sources including hydro, wind, landfill gas, solar and biomass. TheCompany has Three operating segments which are Energy Markets, GroupOperations and Investments. Since Other not consider to be reportablesegment of the company.
Latest ResearchDeeper earnings trough, downgrading FY22 NPAT to $506m
A deeper FY21 earnings trough — FY21 NPAT guidance of A$560-660mwas well
below Citi’s forecast of A$779m, largely due to gas book repricing beingworse than feared and a higher cost base in Group Ops. Consensus hadforecast A$710m. We now forecast A$596m and show our earnings bridgein Figure 1.
For more information see full research report 14 Aug 2020.
Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
30 November 2020$8,548m623.0m$21.23$12.46
RatingRating12 Mth Target Price
Capital GainGross Yield
Implied Total Return
Neutral$14.492.4%5.7%8.1%
Investment FundamentalsFYE 30 Jun 2020A 2021F 2022F 2023F
* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.
Principals & DirectorsPrincipals
Company Secretary Ms Melinda HunterMr John Patrick Fitzgerald
Directors
Mr Peter Robert Botten(Non-Executive Director)Mr Mark Bloom(Non-Executive Director)Mr John Victor Stanhope(Non-Executive Director)Ms Diane Lee Smith-Gander(Non-Executive Director)Mr Graeme Peter Hunt(Non-Executive Director,Non-ExecutiveChairman)Ms Patricia McKenzie(Non-Executive Director)Ms Jacqueline Cherie Hey(Non-Executive Director)Mr Brett Alan Redman(Chief Executive Officer,Managing Director)
To access further Research or for information regarding our recommendations and ratings please seewww.bellpotter.com.au