AGL plans to run its Loy Yang A coal-fired power station in Victoria until 2048.Credit:Caria Gottgens
"Financial year 2021 will be a year of considerable uncertainty as we navigate the COVID-19 pandemic and its economic impact,"AGL chief executive Brett Redman said.
The gloomy forecast sent AGL's shares tumbling on Thursday to end the day 9.5 per cent lower at $15.36.
Across Australia,power prices have been falling following an influx of cheap renewable energy into the grid and a slump in power demand caused by offices,small businesses and factories temporarily closing down. However,increases in energy usage with more people staying indoors have driven shock rises in residential bills,adding to the financial stress for households affected by the economic downturn and raising the risk of bad and doubtful debts by customers unable to pay.
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Mr Redman said AGL had been flagging to the market for some time that wholesale power prices were tipped to ease,"but COVID meant it came down a lot quicker than any of us expected".
"The level of profit we are talking about in financial year 2021 was being predicted in financial year 2022,"he said."In many ways what's happened is COVID has brought us to the future faster."
Mr Redman said the full-year result – in line with its guidance and slightly above the market expectation – reflected the"strength,stability and sustainability"of AGL during a period of significant upheaval.