Company Name: AGL ENERGY LIMITED Australia
Stock Code: AGK
Market Cap ($M): 6783
Equiv. Shares (M): 465
Introduction:
AGL is Australia’s leading renewable energy company and is Australia’s largest private owner, operator and developer of renewable generation assets.AGL is taking action towards creating a sustainable energy future for our investors, communities and customers.
AGL has major investments in hydro and wind, as well as ongoing developments in key renewable areas including solar, geothermal, biomass, bagasse and landfill gas. AGL also operates retail, merchant energy and upstream gas businesses and has over three million customer accounts.
History
The Australian Gas Light Company (AGL) was formed in Sydney in 1837. It supplied gas for the first public lighting of a street lamp in Sydney in 1841 and was the second company to list on the Australian Stock Exchange.
On 6 October 2006, AGL and Alinta Limited shareholders approved the merger of AGL’s infrastructure assets with Alinta and the subsequent separation of AGL Energy.
This was subsequently approved by the Federal Court of Australia on 9 October 2006, and AGL Energy began trading on the Australian Stock Exchange on 12 October 2006
In 1841, AGL lit the first gas street light in Sydney.
In 1842 despite the recession of the time, the Australian Gaslight company was “in a highly flourishing condition”.
Still in the 1850’s, gas lighting allowed for late night shopping in nice department stores.
In 1857 AGL introduced gas purification in Australia. This made it possible for gas to be used in private residences.
In 1873, for the sum of 4 pounds, AGL imported the first gas cooking stove and installed it in their Darling harbor store.
In the 1890’s gas stoves were advertised by the company in cookery books. You could rent a gas stove or buy one.
In1893 in Haymarket, the original AGL energy shop was built as an all gas showroom. It showcased cooking, lighting and heating options, and conducted classes.
By 1936, 59,000 housewives a year were taking gas cooking classes.
In 1976 AGL introduced natural gas to Sydney. Not a national first. But it did involve the longest pipeline in the country – from outback South Australia to Sydney.
In 2007 AGL was the first to join the Chicago Climate Exchange.
In 2007 AGL was recognized for actions taken to address the issue of climate change by being listed as a member of the Dow Jones Sustainability World Index, the leading global ranking of sustainability. And we are the only Australian energy retailer to achieve this status.
In 2008, AGL made Australia’s first carbon trade.
Now, we can produce enough renewable energy to power over 500,000 homes.
Mission Statement:
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Fundamental Analysis: top-down
Top -down approach
Top-down approach considers macro factors
_Economic growth of international economies
• Most economies have rebounded from the GFC
and growing at historical averages
_Exchange rates
• The $AUS is very strong, which is not so good for
exports
_Interest rates
• The current cash rate is 4.75% which is low for
historical levels
_Domestic economy
• Growth rate of GDP was ~3% for 2010
• Inflation rate was ~2.5% for 2010
Business Description :
AGL Energy Limited (AGK) controls Australia’s largest natural gas and electricity and dual fuel customer base supplying over 3.2 million customer accounts. In addition AGK has substantial long term gas supply contracts, a growing portfolio of upstream coal seam gas reserves and utilises the derivative markets.
AGK has market leadership supported by significant economies of scale, a robust and efficient customer service platform, long standing sales and marketing capability, wide experience in effectively managing its regulatory environment and sound risk management. Key strategic initiatives include: Retail – the maintenance of an industry leading retail cost model and continued investment in the brand and competitive capability. Upstream – growth in renewables; growth in generation; and gas portfolio management and investment. Organisational capability includes re-shaping the asset base; the restructure of the balance sheet; and building a high performance culture throughout the group. Project Phoenix is designed to lift overall customer service and improve cash collection. AGL Energy reported NPAT up 30.4% to $239.6m for the half-year ended 31 December 2010. This included a loss after tax of $16.8m from significant items and a gain after tax of $30.2m from the changes in the fair value of financial instruments. Excluding these items, the underlying profit was $226.2m, down 3.7% on the pcp. Revenues from ordinary activities were $3.49bn, up 9% from the same period last year. Diluted EPS was 52.8 cents compared to 40.9 cents last year. Net operating cash flow was $26m compared to $126.8m last year. The interim dividend declared was 29 cents compared with 29 cents last year.
Overview of companies (1 mark)
Listed on the Australian Securities Exchange (ASX code: AGK), AGL is an S&P/ASX 50 company. AGL has been operating in Australia for over 170 years and was one of its first listed companies.
AGL maintains a BBB investment grade credit rating from Standard & Poor’s.
* Add this line with and doing development in alternativet enery as well like solar, bomass etc.
end of Ref to Company website
In 2011, the International Energy Agency said that solar energy technologies such as photovoltaic panels, solar water heaters and power stations built with mirrors could provide a third of the world’s energy by 2060 if politicians commit to limiting climate change. The energy from the sun could play a key role in de-carbonizing the global economy alongside improvements in energy efficiency and imposing costs on greenhouse gas emitters. “The strength of solar is the incredible variety and flexibility of applications, from small scale to big scale (http://en.wikipedia.org/wiki/Solar_energy)
Fundamental Analysis
Price chart – View Performance over a range of options from one month to 2 years
Share price performance – Ten day trading history 3 http://agl.com.au/about/Pages/default.aspx
Share Price Performance
Date
Open
High
Low
Close
Volume
09/01/2012
14.810
14.840
14.640
14.710
743,821
10/01/2012
14.800
14.850
14.600
14.780
1,111,376
11/01/2012
14.840
15.050
14.620
14.980
1,381,494
12/01/2012
15.000
15.000
14.870
14.960
716,485
13/01/2012
15.000
15.000
14.780
14.890
679,526
16/01/2012
14.790
14.850
14.660
14.670
970,802
17/01/2012
14.780
14.840
14.550
14.710
1,114,938
18/01/2012
14.730
14.750
14.620
14.670
786,717
19/01/2012
14.800
14.830
14.640
14.650
832,878
20/01/2012
14.650
14.700
14.510
14.600
860,708
-> Top down analysis
Analysis (4 marks): Even most
Explanation (4 marks)
-> Bottom up analysis
Analysis (4 marks)
Explanation (4 marks)
Conclusion
What companies you are investing in
Why this must be related back to the analysis! (2 marks)
Notes:
50% of the marks come from the analysis that the group must perform. If there is
Just secondary data in tables, the assignment can only achieve 50% at most.
If you start quoting accounting ratios etc, give a definition of these ratios.
The assignment needs to read as if it is one person’s work. Marks will be deducted if the assignment is not coherent.
Even though there are not marks allocated for references; not including any will
result in a mark of zero.
2. Company Name: ENERGY DEVELOPMENTS LIMITED
ASX Code: ENE
Market Cap ($M): 412
Equiv. Shares (M): 168
INTRODUCTION: Energy Developments Limited (ENE) is an international provider of renewable energy and low greenhouse gas (GHG) emission energy. The Company owns and/or operates 79 projects in Australia, the United States, Europe and the United Kingdom with a total capacity of over 690 MW, providing services in four main areas of power generation and associated energy solutions: landfill gas (LFG) power, Waste Coal Mine Gas (WCMG) power, remote energy (RE), and liquefied natural gas (LNG) and compressed natural gas (CNG) power.
HISTORY:
Mission Statement: “To be a leading International provider of sustainable and innovative clean energy and environmental solutions“
Top down
Bottom Up
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