Strategy: Implement AGL’s integrated business strategy. Integration of AGL’s business along the gas and electricity supply chains provides a natural hedge against commodity price movements, reducing business risk and lowering our cost to supply. This benefits both our customers and shareholders. Simultaneously, AGL gains access to a greater number of profit pools, diversifying our sources of income and improving quality of earnings.  
 
Highlights 2006/2007
Performance 2006/2007
Actions 2007/2008

Significant progress in implementing this strategy was made in 2006/2007 with commencement of construction of the 140MW Bogong hydro project and the 95MW Hallett wind farm and an agreement reached to acquire the 1280MW gas fired Torrens Island power station from 1 July 2007. We also acquired significant additional gas reserves with the purchase of 27.5% of Queensland Gas and a 50% stake in the Moranbah Gas Project.

 

During the year, AGL established a significant retail presence in Queensland with the purchase of the Powerdirect and Sun Gas businesses, adding over 540,000 new customers. The Powerdirect acquisition also added substantially to our small to medium enterprise and commercial and industrial businesses and increased our total annual electricity load from 22TWh to over 40TWh.

 

During 2006/2007 AGL contributed $159.2 million to the community in the form of
taxes paid.

  

Performance Summary

  2006/07
Total assets $14.1b
Capex (SIB) $18.7m
EPS 77.3c
Debt $2.1b
ROE 12.2%
D/D+E 44.4%
Exp / Net Rev 84.3%
NPAT $326m
Interest Expense $98.7m
Dividends Paid 26 cps

 

Revenue ($ billion)
2006/07 3.8