AGL Energy has issued a massive profit upgrade as it prepares to slug customers with bill increases of up to 30 percent, igniting the share price.
Shares in Australia’s largest electricity generator surged 11.3 percent or $1.09 (US$0.75) to $10.75 (US$7.4) in afternoon trade as the top performing stock on June 16.
As Australia’s largest emitter, the company is spending up to $10 billion (US$6.9 billion) over the next eight to 12 years on shutting down ageing coal-fired power stations and replacing them with renewable energy and fast-start gas units.
Announcing a brighter outlook for shareholders this year and next, AGL chief executive Damien Nicks said the business was highly leveraged to wholesale prices, which have increased significantly in recent years….