AGL Energy (AGK.AX,AGLNF.PK) reported a statutory net profit after tax of A$218 million for the year ended 30 June 2015, down 61.8% from last year, largely due to higher Significant Items in the current financial year. Significant Items of A$578 million included costs associated with the Macquarie Generation acquisition of A$117 million and a A$435 million impairment of Upstream Gas assets.
AGL's Underlying Profit of A$630 million was up 12.1% on the prior year. Underlying Profit was the statutory net profit after tax adjusted for Significant Items and changes in the fair value of certain energy derivatives.
Revenue was A$10.678 billion, up 2.2% from the previous year.
AGL has previously advised the market that it will improve operational efficiency and is targeting around A$200 million real reduction in its normalised operating cost base, and around A$100 million real reduction in sustaining capital expenditure by FY17. A significant portion of this cost improvements is expected to be achieved by 30 June 2016.
AGL has declared a final dividend of 34.0 cents per share, which brings the total dividend for the year to 64.0 cents.
Shares will commence trading ex-dividend on 25 August 2015. The record date to determine shareholders' entitlements to the final dividend is 27 August 2015 with the dividend being paid to shareholders on 24 September 2015.
In addition, AGL targets around A$1 billion in non-strategic and under-performing asset divestments by the end of fiscal year 2017. The sale of AGL's 50 percent interest in the Macarthur Wind Farm is expected to be completed in the first half of FY16. Working capital reductions of around A$200 million by the end of fiscal year 2017 are also targeted.
Restructuring costs associated with the organisation restructure of approximately A$20 million pre-tax are expected to be booked as Significant Items in FY16.
AGL will provide formal guidance of its fiscal year 2016 earnings outlook at its Annual General Meeting on 30 September 2015.
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