Shares of AGL have lost more than 6% over the last two sessions after a mixed full-year report was released on Thursday.
The top line data was impressive as the energy generator announced net profits surged to $1.6 billion, which is almost three times higher than the previous year’s profit of $539 million.
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However, a large part of the increase in profits came from a $562 million gain on electricity derivative contracts, a segment of their business which lost over $250 million in 2017.
Along these lines, AGL indicated that based on a fall in the forward price curve, it expects wholesale prices (and their margins) to decline into 2019.
On balance, while the overall full-year NPAT beat most estimates, the downbeat forward guidance has weighed heavily on the stock price and points to lower levels over the short-term
The next key technical support level is in the $19.50 area, which would represent a 2-year low.
AGL
