Overall AGL reported a profit of $349.5 million for the 12 months to June 30, up 18.5% on the previous year.
"The company's financial position is sound. Earnings per share grew by 9.5 cents, up from 67.3 cents in the previous year. The underlying profit after income tax of $361.8 million, excluding significant items and outside equity interests, increased by 12.8% on the prior year," said AGL chairman Mark Johnson.
The AGL board declared a final dividend of 31 cents per share (franked to 74 per cent) payable on 24 September 2004. This takes the total dividend for the year to 60 cents per share (franked to 75 per cent) compared with 55 cents per share (franked to 62 per cent). The company said the dividend reinvestment plan remains suspended. Operating cash flow rose by 17.5% to $637.2 million.
"AGL's financial position remains strong and will enable the company to continue to pursue opportunities to further enhance its position across the energy sector," Johnson said.
"Market conditions in New Zealand now provide an opportunity to unlock value for AGL shareholders through the sale of the company's interest in NGC. AGL has appointed an adviser and commenced a process to facilitate the sale over the coming months," Johnson concluded.
AGL holds a 66.05% interest in NGC and following today’s announcement the NZ utility has put a hold on all potential growth opportunities until the sales process is complete.
AGL managing director Greg Martin said, "The strong performance from AGL's energy businesses has underpinned this financial result, particularly the contribution from energy retailing and networks. The positive influence of weather, satisfactory regulatory outcomes in Victoria and NSW and a full year contribution from the Pulse business all played a part in delivering this strong result."
"AGL remains focussed on increasing shareholder value through organic growth, pursuing complementary acquisition activities and optimising the company's capital structure. Expected proceeds from the disposal of NGC are being incorporated into consideration of these areas of focus, including capital management initiatives, about which we expect to make an announcement in the near future."
