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Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months

The AGL share price has had a rough trot lately.
The post Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months appeared first on The Motley Fool Australia. –

The AGL Energy Limited (ASX: AGL) share price has been having a hard time lately, falling a whopping 14.56% in the past 3 months.

Right now, shares in AGL are trading for $8.05. But, just 3 months ago, they were going for $9.41.

Over the last 90 days, the energy company announced its fleshed out demerger plans and said goodbye to its CEO and managing director.

Let’s take a look at what AGL has been up to lately.

The last 3 months for the AGL share price

It’s been a wild ride for the AGL share price.

AGL’s boss stepped down

The first news to rock AGL’s share price came on 22 April when the company’s CEO and managing director Brett Redman announced he was stepping down.

Redman stated he didn’t want to lead the company after its structural separation, which AGL announced in March.

Redman’s exit was effective immediately and AGL’s chair Graeme Hunt took on the position of interim CEO and managing director.

The AGL share price fell 2.87% in reaction to Redman’s walkout.

Confirmation of structural separation

The last time the market heard from AGL was on 30 June when the company confirmed its planned structural separation and explained how it will go ahead. It also provided guidance for the 2021 financial year.

The two pieces of news saw the AGL share price fall 9.99% over the course of the day.

Firstly, AGL announced the process in which it’s planning to create 2 ASX-listed energy companies.

It will begin by morphing AGL Energy into Accel Energy, a company that will generate electricity.

Accel Energy will then demerge to create AGL Australia. AGL Australia will focus on retailing, trading, storing, and supplying energy.

AGL plans to put the structural separation to a shareholder vote shortly so the split can be finalised before the end of 2021.

Updated guidance

While AGL’s guidance seems relatively neutral, it no doubt affected its plunging share price that day.

The energy company confirmed its underlying earnings would be in the range of its previous guidance.

It stated its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) would be in the lower half of its previous guidance of $1,585 million to $1,845 million.

Additionally, it said its underlying net profit after tax would be roughly in the middle of its previously predicted range of between $500 million and $580 million.

AGL also expects its earnings to be less in the 2022 financial year.

AGL share price snapshot

It goes without saying the AGL share price is having a bad year on the ASX.

Currently, it’s down 33% year to date. It is also 53% lower than it was this time last year.

The post Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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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