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How does the AGL (ASX:AGL) earnings result compare to Origin?

Did AGL come out on top during financial year 2021?
The post How does the AGL (ASX:AGL) earnings result compare to Origin? appeared first on The Motley Fool Australia. –

AGL Energy Limited (ASX: AGL) released its earnings for financial year 2021 (FY21) last week, to the detriment of its share price.

As The Motley Fool Australia reported at the time, the AGL share price slipped after the release of its annual report. It ended the day 5.53% lower than the previous session.

But AGL is just one of the ASX’s big energy providers and comparing its results to those of its peers could be a useful exercise.

One obvious listed competitor to AGL is Origin Energy Ltd (ASX: ORG). While there are marked differences between the two energy companies, the demerger AGL is currently battling towards being one, they still tend to run in the same pack.

So, how do AGL’s earnings stack up against those of Origin? Let’s take a look.

AGL earnings report detailed a $2 billion loss

As mentioned above, the market reacted poorly to AGL’s earnings. Here’s a snapshot of how it performed during FY21:

Revenue dropped 10% to $10.9 billion
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $1.66 billion –down 18% on that of FY20
Statutory loss of around $2.05 billion
Underlying profits of $537 million – FY20 saw $816 million of underlying profits
35-cent final dividend, 33% less than the final dividend of FY20

The day after AGL released its earnings, the company’s share price regained some ground before falling once more. It’s currently 5.9% lower than it was before AGL’s release.

Let’s see if Origin offered up any competition.  

How does Origin’s FY21 compare?

Origin didn’t do much better during FY21.

Like AGL, Origin saw its share price drop after it released its earnings on Thursday. Origin’s shares fell 4% on the back of its annual report.

However, Origin’s shares bounced back on Friday to end the session 1.3% lower at Wednesday’s close.

Here’s how it performed:

Revenue down 8% to around $1.2 billion
Around $2 billion of underlying EBITDA – 35% less than in FY20
Statutory loss of approximately $2.2 billion
Underlying profit of $318 million – FY20 saw around $1.03 billion of underlying profits
Unfranked 7.5 cent final dividend – 25% less than FY20’s final dividend.

As you can see, there are some noticeable similarities between the two energy companies’ financial years.

Most obviously, both AGL and Origin reported an earnings loss of more than $2 billion. They were both plagued by lower wholesale energy prices and lessening demand due to COVID-19.

However, AGL’s revenue fell further than Origin’s, and it cut its dividend more enthusiastically.

All in all, FY21 wasn’t great for either AGL or Origin. Their significantly differing paths forward will likely make interesting viewing.

AGL share price snapshot

The AGL share price has been underperforming for a while.

As of Friday’s close, it has dropped 41% year to date. It has also slipped 53% since this time last year.

Right now, shares in AGL are worth $7.15 apiece.

The post How does the AGL (ASX:AGL) earnings result compare to Origin? appeared first on The Motley Fool Australia.

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More reading

Here are the top 10 ASX 200 shares today

When was the worst-ever day on the AGL (ASX:AGL) share price chart?
The Origin (ASX:ORG) dividend has dropped 20%
The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine

Why BHP, Codan, IGO, & Origin shares are dropping

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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