AGL Energy shares rise on strong earnings, higher dividend outlook

Shares in AGL Energy rose on Wednesday after the Australian electricity and gas supplier reported upbeat full-year earnings and upgraded its dividend outlook.

The company said underlying profit after tax increased to A$1.1 billion ($720 million) for the fiscal year ended June 30, up from A$830 million a year earlier. Revenue climbed 15% to A$14.2 billion, driven by higher energy prices and increased demand.

AGL also raised its full-year dividend guidance, projecting a payout of A$1.10 per share, compared with the previous forecast of A$1.00 per share. The final dividend will be determined alongside the full-year results, scheduled for release in late August.

The improved outlook reflects stronger wholesale energy prices and operational efficiencies, the company stated. AGL Energy’s shares were up 3.2% in early trading on the Australian Securities Exchange, outperforming the broader market.

Analysts noted the dividend increase as a sign of confidence in the company’s cash flow stability despite volatility in energy markets. AGL Energy remains a key player in Australia’s energy transition, with investments in renewable generation and grid stability.

The earnings report follows a period of heightened scrutiny over energy pricing and supply security in Australia, where wholesale power prices have fluctuated amid extreme weather and policy shifts.