AGL Energy Limited
From IntFX
See also: AGK for realtime information.
AGL Energy Ltd is an integrated energy company. It has 169 years of experience which includes retail and merchant energy businesses, power generation assets and an upstream gas portfolio.
The Company has largest retail energy and dual fuel customer base in Australia, supplying to 3.6 million customer. Customers are supplied with supplied with gas and electricity via ActewAGL and AlintaAGL which are company's joint venture partnerships.
The Company is engaged in following
- Sale of gas and electricity
- Power generation and energy processing infrastructure
- Development of natural gas production facilities
- Exploration, extraction, production and sale of coal seam methane gas (CSM)
- Extraction and sale of liquid petroleum gas (LPG)
- Extraction and sale of crude oil
Till end of October '06 AGL Energy Limited was controlled by The Australian Gas Light Company (old AGL). Subsequently the company demerged from The Australian Gas Light Company. The Company was listed on the Australian Securities Exchange in October 2006 under the ticker ‘AGK'.
Recent development in AGL Energy Ltd:
- The Company acquired in Jan'2007 Queensland Government's Sun Gas retail business, which includes approximately 70,800 residential and industrial and commercial customers.
- In March 2007, it acquired Powerdirect Australia from the Queensland Government which lead to addition of 473,000 residential, small-to-medium enterprise, and industrial and commercial accounts.
- It is first utility outside North America to join the Chicago Climate Exchange.
Following are major investments of company as part of its consolidation drive:
- The Company completed the acquisition of a 27.5% interest in Queensland Gas Company in March'2007.
- In October'2006 the Company acquired 33.0% ownership interest in AlintaAGL Pty Limited. The Parent Entity has an option to sell its 33% or purchase the remaining 67% of AlintaAGL. Babcock & Brown initiated such option following the purchase of Alinta Limited.
- The Company acquired 35% ownership interest in CSM Energy Limited in June 2007.
AGL Energy Limited has subsidaries which includes
- AGL Limited
- AGL ACT Retail Investments Pty Limited
- AGL Chile Operations SA.
The Company is headquartered in Australia. AGK is rated BBB investment grade by Standard & Poor’s.
[edit] Strategy
The Company has clear goal which is driven by following four approaches:-
- Consolidation in a fragmented market
- Ensure first mover advantage and exploit it to have sustainable returns.
- Increase participation in profit pools of appreciating commodities i.e. gas & electricity
- Full integration of electricity & gas supply chains to mitigate against commodity price traps
The portfolio is structured to benefit under a carbon constrained environment growth platform & skills to succeed across gas & electricity energy chains
[edit] Financial and operational performance
In 2007, consolidated net profit after taxes increased 8 times to A$410.5 million from A$45.6 million in 2006 primarily driven by higher revenue from retail energy, merchant energy and energy investments.
