Wednesday, September 8th, 2010
AGL Energy Limited (ASX:AGK) established ‘The Australian Gas Light Company’ in 1837 and is one of Australia’s oldest businesses, 34 years later (1871), the company became the second business to list on the Sydney Stock Exchange.
The company’s principal activities are:
- The sale of gas & electricity;
- Ownership and operation of natural gas and electricity distribution networks;
- Operation of natural gas transmission pipelines and the extraction & sale of LPG; and
- Power generation and the control of energy processing infrastructure.
AGK is Australia’s largest natural gas and electricity company. The company’s customer base is serviced by a substantial integrated generation portfolio with diversity across geography, fuel type and generation mix. AGK has substantial long term gas supply contracts, a growing portfolio of upstream coal seam gas reserves and utilises the energy derivative markets to hedge pricing.
AGK is also Australia’s largest private owner/operator of renewable energy with a focus on hydro and wind power.
Retail Energy (2010 Operating EBIT: $318.7M): This division handles the purchase, sale and marketing of household gas and electricity supplies. AGK’s provides energy services to approximately 3.2M customers.
Merchant Energy (2010 Operating EBIT: $386.1M): Merchant Energy is responsible for:
- developing, operating and maintaining AGK’s power generation assets; and
- helping their major customers prepare for a carbon constrained future while managing the risks associated with securing and delivering gas and electricity to AGK’s wholesale and retail operations.
Upstream Gas (2010 Operating EBIT: $5.5M): This division is responsible for building AGK’s emerging positions in coal seam gas and geo thermal developments.