AGL has released their annual results - with a whopping annual loss of $1.2 billion.
👉 Background: AGL Energy is one of the biggest providers of electricity, gas, and other energy services in Australia. In fact, the company is nearly 200-years-old - back when gas lamps were lighting up the city.
👉 What happened: Now, AGL has released their annual results - with a whopping annual loss of $1.2 billion. And that's after they made a juicy profit of $860 million dollars last year. But here's the thing: this loss wasn't a typical financial loss.
👉 What else: AGL wrote down over $1 billion worth of assets from closing down plants and other impairments. But when you pull those write downs out of the picture, it turns out AGL actually made an underlying profit of $281m. What a twist!
💡With financial reports, there's always more than meets the eye.
💡When a company has massive write downs, their 'statutory' net profit after tax doesn't always reflect the underlying performance across the year.
💡That's why looking at underlying profits shows a more accurate picture - where AGL Energy generated $281 - or an increase of 25% from last year.
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