AGL Energy Limited

AGL Energy Limited- Introduction, Operational business activities and its key financial performances

Main business of the AGL and Its Business units

The core business activity of AGL are the activity of energy enterprises and capital investment which include production of power and storage of gas and these gas and electricity are sale to people who live in resident, extensive customer and industrial. No major changes were present in the key business activities of AGL for the annual year 2019.

AGL operates its business in four main business segments: 

Wholesale markets

It consists of electricity and gas wholesalers. So, this includes Eco markets, too. These markets are accountable for assessing the price risks in gas and power energy in order to supply customers and handle the responsibilities of AGL about schemes of renewable energy. Wholesale markets also monitor and track the product which is related to portfolio of energy evading goods.

Customers markets

This includes the portfolios of households and large business customers and its other role is to sell electricity, coal, solar and any other energy-efficient goods or services to its customers and residential properties. Consumer market sometimes rely on wholesale market as it produces energy at transfer price. The other function includes product invention, sales distribution, marketing, brand and the operational activities.

Group operations

It comprises of product portfolio of AGL's electricity production processes across the thermal, Renewable, Natural Gas and other business units at its key sites.

Investments

It comprises of capital investments of AGL in different projects.(AGL Annual Report , 2019).

Industry outlook

The industry in which AGL is operating is Utilities and it is the second largest company in terms of costumer accounts (3.7 Mn) and market share (21.2%) in the utilities industry. Its core opponents are, Energy Australia, Ergon energy and Origin energy. Currently, Origin energy is leading with the market share of 28.1 % (The largest energy companies in Australia, 2020).

Sources of funding

The internal sources of finances for AGL are cash in hand, disposal of assets and cash it generates when it receives payments from its customers.

The external sources of finance for AGL are equity and debts. It generates equity investments through individual shareholders. It had 114,217 individual shareholders which include both primary and ordinary shareholders. Most of the shareholders had super funds or they invest through major pension funds. AGL usually generate debt investments or loans from banks. It also maintains bond disbursement schemes in both the United States preferred stock and Australian Medium-Term Note markets, enabling enduring or competitive market financing  (AGL Annual Report , 2019).