Australian power producer AGL Energy (AGL.AX) posted lower annual underlying profit on Wednesday, missing analyst estimates, as higher gas supply costs and weaker wholesale electricity prices outweighed stronger retail electricity and gas margins.
The Melbourne-based utility posted an underlying net profit after tax of A$631 million ($445.55 million) for the year ended June 30, from A$640 million a year ago, missing Visible Alpha's consensus estimate of A$636.3 million.
AGL, also Australia's largest corporate carbon emitter, said lower wholesale electricity prices weighed on earnings, as easing supply constraints and milder weather reduced market volatility.
"Gross margin across our gas portfolio decreased due to an increase in gas purchase costs, reflecting the gradual roll-off of lower-priced legacy gas supply contracts during the year," said AGL Managing Director and CEO Damien Nicks.
The energy company said it expects the underlying net profit after tax for 2027 to be between A$470 million and A$670 million, citing lower operating costs.
($1 = 1.4162 Australian dollars)
