AGL energy ltd.
Discuss about the Report for Quantitative Analysis of AGL Energy ltd. and Genesis Energy ltd.
Genesis energy ltd.
It is a energy company which varies the range of products that offers services to customers and provide them the energy solution in a very simple and smart way. This company was established in 1998 and started its operation on 1st April 1999.This company produce electricity with the help of number of generation assets, trade electricity and natural gas. The genesis energy ltd. is the largest retailer company of electricity and gas in the New Zealand and has the customer connection which is more than 636,676. This company belongs to the renewable energy and the operation is done in three hydro power schemes that are Tongariro, waikaremoana and Takeo. This company also belongs to the Hau Nui Wind Farm in the Wairarapa. This company also produces thermal energy and their Huntly power station has the largest capacity to produce electricity which is facilitating in New Zealand. This power station is established by the two modern gases that is fired and two coal gas and has the fired generating units also. They have their contribution in Kupe joint venture about 31% interest and the operation is done in Taranaki in the field of Kupe oil and gas. Kupe is the most important part of the business which generates sources for electricity and gas and provides it to the customers in a varied way. This company purchase electricity from the electricity market and sell it in that market only in New Zealand. The generators sell the electricity in the market and the retailers buy that and sell the electricity generation to the customers. The selling of the natural gas is done by the company in the North-island to the residential and commercial customers and it is also sold to the wholesale natural gas market to get the surplus. They also sale LPG which is acquired from Kupe to the customers in New Zealand. As per the customer needs and requirements they provide the smart energy for the electricity and gas. This company also offers the first class customer service as per the requirements. This company also provides electricity to all type of business even to the rural enterprises also. They have the business team which supports the commercial customers.
This company was established in 1837 and is the oldest company of the Australia. This company adopts new things and believes in creation for the sustainable and reliable energy which is provided to the customer. They believe in change and do work for the community and for the environment. This company established the first gas street lamp in the Sydney in the year 1841 and now it has the largest solar plant in Australia which was established in 2015. It is the largest owner of the listed ASX and does operation for generating electricity in the country. This company also support and has the contribution in the organization.
Statement of profit and loss
It is the integrated energy company which leads in Australia. This company takes the responsibility for the reduction of greenhouse gas emissions and offers the safe and secure energy to the customer which can be afford by the customer. This company has the experience of 175 years and with these experiences it offers the gas, electricity, solar PV and related product and services to the customer as per their needs and requirements in the Eastern Australia. It has the portfolio of power generation like base, peaking, intermediate generation plant which is spread among the thermal generation along with the renewable sources like hydro, wind, solar, landfill gas and biomass.
Of AGL Energy ltd
|
for the year ended 30 June 2015 |
2015 |
2014 |
|
$m |
$m |
|
|
continuing operation |
||
|
Revenue |
10678 |
10445 |
|
Expenses |
-9759 |
-9165 |
|
share of profit of associates and joint venture |
27 |
25 |
|
profit before net financing costs, depreciation and amortization |
946 |
1305 |
|
depreciation and amortization |
-379 |
-326 |
|
profit before net financing cost |
567 |
979 |
|
finance income |
20 |
24 |
|
finance cost |
-250 |
-243 |
|
net financing cost |
-230 |
-219 |
|
profit before tax |
337 |
760 |
|
income tax expense |
-119 |
-190 |
|
profit for the year |
218 |
570 |
|
profit attributable to: |
||
|
owners of AGL energy ltd. |
218 |
570 |
|
non-controlling interest |
||
|
218 |
570 |
|
|
earnings per share |
||
|
basic earnings per share |
33.3cents |
98.2cents |
|
diluted earnings per share |
33.3cents |
98.2cents |
|
Statement of financial position |
||
|
As at 30june 2015 |
2015 |
2014 |
|
$m |
$m |
|
|
current assets |
||
|
cash and cash equivalents |
259 |
456 |
|
trade and other receivables |
1894 |
1902 |
|
Inventories |
396 |
191 |
|
other financial assets |
156 |
114 |
|
other assets |
262 |
318 |
|
2967 |
2981 |
|
|
assets classified as held for sale |
492 |
430 |
|
total current assets |
3459 |
3411 |
|
non-current assets |
||
|
trade and other receivables |
44 |
46 |
|
Inventories |
32 |
28 |
|
other financial assets |
596 |
484 |
|
investment in associate and joint ventures |
91 |
32 |
|
exploration and evaluation assets |
130 |
372 |
|
oil and gas assets |
544 |
170 |
|
property, plant and equipment |
6958 |
5694 |
|
intangible assets |
3266 |
3248 |
|
deferred tax assets |
682 |
631 |
|
other assets |
31 |
18 |
|
total non-current assets |
12374 |
10723 |
|
total assets |
15833 |
14134 |
|
current liabilities |
||
|
trade and other payable |
1377 |
1417 |
|
Borrowings |
443 |
45 |
|
Provisions |
191 |
101 |
|
deferred tax liabilities |
86 |
49 |
|
other financial liabilities |
269 |
477 |
|
other liabilities |
7 |
|
|
2373 |
2089 |
|
|
liabilities directly associated with assets classified as held for sale |
77 |
|
|
total current liabilities |
2373 |
2166 |
|
non-current liabilities |
||
|
borrowings |
3439 |
3669 |
|
Provisions |
456 |
106 |
|
deferred tax liabilities |
50 |
|
|
other financial liabilities |
387 |
280 |
|
other liabilities |
363 |
275 |
|
total non-current liabilities |
4645 |
4380 |
|
total liabilities |
7081 |
6546 |
|
net assets |
8815 |
7588 |
|
equity |
||
|
issued capital |
6696 |
5437 |
|
reserves |
-65 |
-99 |
|
retained earnings |
2175 |
2249 |
|
total equity attributable to owners of AGL Energy limited |
8806 |
7587 |
|
non-controlling interests |
9 |
1 |
|
total equity |
8815 |
7588 |
|
for the year ended 30june 2015 |
2015 |
2014 |
|
$m |
$m |
|
|
cash flow from operating activities |
||
|
receipts from customers |
11587 |
11791 |
|
payments to suppliers and employees |
-10236 |
-10733 |
|
dividend received |
32 |
26 |
|
finance income received |
24 |
23 |
|
finance cost paid |
-216 |
-217 |
|
income taxes paid |
-147 |
-191 |
|
net cash provided by operating activities |
1044 |
699 |
|
cash flow from investing activities |
||
|
payments for property, plant and equipments |
-744 |
-624 |
|
payments for exploration and evaluation assets |
-34 |
-28 |
|
payments for oil and gas assets |
-28 |
-46 |
|
payments for investments in associates and joint ventures |
-80 |
|
|
payments for intangible assets |
-25 |
|
|
payments for business and subsidiaries, net of cash acquired |
||
|
acquisition in current period |
-1348 |
-79 |
|
acquisition in prior periods |
-32 |
-33 |
|
government grant received |
32 |
190 |
|
proceeds from sale of property, plant and equipment |
6 |
2 |
|
loan advanced to related parties |
3 |
-126 |
|
proceeds from repayment of related party loans |
56 |
|
|
net cash used in investing activities |
2175 |
-769 |
|
cash flow from financing activities |
||
|
proceeds from issue of shares, net of transaction costs |
1210 |
1 |
|
proceeds from issue of shares to non-controlling interest |
8 |
1 |
|
purchase of shares on- market for equity based remuneration |
-7 |
-6 |
|
proceeds from borrowings |
2647 |
2075 |
|
repayments of borrowings |
-2580 |
-1547 |
|
payments for settlement of derivative financial instruments |
-10 |
|
|
dividend paid |
-344 |
-269 |
|
net cash provided by financing activities |
924 |
255 |
|
net(decrease)/increase in cash and cash equivalents |
-207 |
185 |
|
cash and cash equivalents at the beginning of the financial year |
466 |
281 |
|
cash and cash equivalents at the end of the financial year |
259 |
466 |
|
for the year ended 30 June 2015 |
||
|
2015 |
2014 |
|
|
$m |
$m |
|
|
operating income |
||
|
electricity revenue |
1730.4 |
1661.1 |
|
gas revenue |
282.9 |
251.3 |
|
petroleum revenue |
64.7 |
84.4 |
|
other revenue |
19.6 |
8.2 |
|
2097.6 |
2005 |
|
|
operating expenses |
||
|
electricity purchase, transmission and distribution |
-953.7 |
-897.7 |
|
gas purchase and transmission |
-297.1 |
-249.8 |
|
petroleum production, marketing and distribution |
-26.1 |
-30.6 |
|
fuels consumed |
-187.4 |
-191.3 |
|
employee benefits |
-80.6 |
-89.2 |
|
other operating expenses |
-207.9 |
-238.6 |
|
-1752.8 |
-1697.2 |
|
|
earnings before net finance expense, income tax, depreciation, depletion, |
||
|
amortization, impairment, fair value changes and other gains and losses |
344.8 |
307.8 |
|
depreciation, depletion and amortization |
-155.7 |
-156.7 |
|
impairment of non-current assets |
-14 |
-10.1 |
|
change in fair value of financial instruments |
32.1 |
0.4 |
|
other gains(losses) |
-0.2 |
-1.6 |
|
-137.8 |
-168 |
|
|
profit before net finance expense and income tax |
207 |
139.8 |
|
finance revenue |
1.3 |
0.9 |
|
finance expense |
-68 |
-69.1 |
|
profit before income tax |
140.3 |
71.6 |
|
income tax (expense) |
-35.5 |
-22.4 |
|
net profit for the year |
104.8 |
49.2 |
|
other comprehensive income |
||
|
items that may be reclassified subsequently to profit or loss |
||
|
change in cash flow hedge reserve |
-20.1 |
5 |
|
income tax credit (expense) relating to items that may be reclassified |
5.6 |
-1.4 |
|
total items that may be reclassified subsequently to profit or loss |
-14.5 |
3.6 |
|
total other comprehensive income (expense) for the year |
-14.5 |
3.6 |
|
total comprehensive income for the income |
90.3 |
52.8 |
|
earnings per share from operations attributable to shareholders of the parent |
||
|
basic and diluted earnings per share(cents) |
10.49 |
4.92 |
|
as at 30 June 2015 |
2015 |
2014 |
|
current assets |
$m |
$m |
|
cash and cash equivalents |
21 |
23.3 |
|
receivables and prepayments |
187.7 |
216.4 |
|
inventories |
80 |
93.8 |
|
assets held for sale |
3.1 |
|
|
intangible assets |
4.3 |
3.9 |
|
tax receivables |
16.2 |
|
|
derivatives |
34.2 |
19.9 |
|
total current assets |
346.5 |
357.3 |
|
|
|
|
|
non-current assets |
|
|
|
receivables and prepayments |
0.9 |
0.9 |
|
inventories |
24.4 |
34.1 |
|
property, plant and equipments |
2682.5 |
2758.8 |
|
oil and gas assets |
292.4 |
342.1 |
|
intangible assets |
127.4 |
128.2 |
|
derivatives |
53.9 |
8 |
|
total non-current assets |
3181.5 |
3272.1 |
|
total assets |
3528 |
3629.4 |
|
current liabilities |
||
|
payables and accruals |
158.3 |
194.8 |
|
tax payable |
3.4 |
|
|
borrowings |
117.8 |
12.3 |
|
Provisions |
12.3 |
13.6 |
|
Derivatives |
21.5 |
22.5 |
|
total current liabilities |
309.9 |
246.6 |
|
non-current liabilities |
|
|
|
payables and accruals |
0.7 |
0.7 |
|
borrowings |
840.4 |
977.1 |
|
Provisions |
123.7 |
126.9 |
|
deferred tax liability |
397.2 |
384.2 |
|
Derivatives |
30.7 |
13.2 |
|
total non-current liabilities |
1392.7 |
1502.1 |
|
total liabilities |
1702.6 |
1748.7 |
|
shareholders’ equity |
||
|
share capital |
539.7 |
539.7 |
|
Reserves |
1285.7 |
1341 |
|
total equity |
1825.4 |
1880.7 |
|
total equity and liabilities |
3528 |
3629.4 |
|
2015 |
2014 |
|
|
|
$m |
$m |
|
cash flow from operating activities |
|
|
|
cash was provided from : |
||
|
receipts from customers |
2122 |
2055.1 |
|
interest received |
1.3 |
0.9 |
|
2123.3 |
2056 |
|
|
cash was applied to : |
||
|
payments to suppliers and related parties |
1687.6 |
1649.7 |
|
payments to employees |
81 |
89.1 |
|
tax paid |
36.2 |
13.3 |
|
|
1804.8 |
1752.1 |
|
net cash inflows from operating activities |
318.5 |
303.9 |
|
cash flow from investing activities |
||
|
cash was provided from: |
||
|
proceeds from disposal of property, plant and equipments |
1.3 |
0.4 |
|
proceeds from disposal of oil and gas assets |
0.1 |
|
|
1.3 |
0.5 |
|
|
cash was applied to: |
||
|
purchase of property, plant and equipment |
35.5 |
66.5 |
|
purchase of oil and gas assets |
4.1 |
1.2 |
|
purchase of intangible(excluding emission units ) |
10.3 |
15.7 |
|
|
49.9 |
83.4 |
|
net cash (outflow) from investing activities |
-48.6 |
-82.9 |
|
cash flow from financing activities |
||
|
cash was provided from: |
||
|
proceeds from borrowings |
193 |
167.1 |
|
193 |
167.1 |
|
|
cash was applied to : |
||
|
repayments of borrowings |
256.1 |
195 |
|
interest paid and other finance charges |
61.6 |
66.6 |
|
repayment of principal on finance lease liabilities |
1.6 |
4 |
|
dividends |
145.9 |
121 |
|
acquisition of treasury shares |
0.9 |
|
|
|
465.2 |
387.5 |
|
net cash(outflow)from financing activities |
-272.2 |
-220.4 |
|
net increase(decrease) in cash and cash equivalents |
-2.3 |
0.6 |
|
cash and cash equivalents at 1 July |
23.3 |
22.7 |
|
cash and cash equivalents at 30 June |
21 |
23.3 |
Genesis Energy ltd
|
2015 |
2014 |
|
|
ROA |
5.87% |
3.85% |
|
ROE |
5.74% |
0.02616047 |
|
N/P Margin |
5.00% |
1.36% |
|
G/P margin |
9.87% |
6.97% |
|
cash flow to sales revenue |
15.18% |
15.16% |
|
current ratio |
1.118103 |
1.44890511 |
|
quick ratio |
346.2419 |
356.919627 |
|
interest coverage ratio |
-2.06324 |
-1.0361795 |
|
debt to equity ratio |
48.26% |
48.18% |
|
equity ratio |
51.74% |
51.82% |
|
debt ratio |
48.26% |
48.18% |
|
EPS |
10.49 |
4.92 |
|
assets T/O ratio |
0.594558 |
0.55243291 |
|
days inventory |
13.92067 |
17.0758105 |
|
days debtor |
32.66137 |
39.3945137 |
|
times inventory T/O |
26.22 |
21.3752665 |
|
times debtor T/O |
11.17528 |
9.26524954 |
|
debt coverage ratio |
4.372684 |
4.94274432. |
Return on assets is more in 2015 as compare to 2014 because income of the year and the total assets is high in 2015 as compared to 2014. Net profit ratio is also increased in 2015 as compared to 2014 because company earns a good profit and generates revenue. Current ratio has been decreased in 2015 to 2014. Quick ratio is low in 2015 as compared to 2014. Debt equity ratio is high in 2015 as compared to 2014. Equity ratio is low in 2015 as compared to 2014.Earnings per share is high in 2015 as compared to 2014.
|
2015 |
2014 |
|
|
ROA |
2.13% |
5.38% |
|
Net profit ratio |
2.04% |
5.46% |
|
quick ratio |
3458.833 |
3410.912 |
|
current ratio |
1.457649 |
1.574792 |
|
debt to equity ratio |
80.33% |
86.27% |
|
equity ratio |
55.67% |
53.69% |
|
EPS |
33.3 |
98.2 |
|
ROE |
2.48% |
7.51% |
|
G/P Margin |
5.31% |
9.37% |
|
cash flow to sales ratio |
9.78% |
6.69% |
|
assets T/O ratio |
0.674414 |
0.738998 |
|
days inventory ratio |
1.093838 |
0.978459 |
|
days debtor ratio |
64.74152 |
66.46529 |
|
times inventory T/O |
26.96465 |
54.68586 |
|
times debtor T/O |
5.637804 |
5.491588 |
|
debt ratio |
44.72% |
46.31% |
|
interest coverage ratio |
-1.46522 |
-3.47032 |
|
debt coverage ratio |
4.449234 |
6.266094 |
The return on assets ratio, net profit ratio, current ratio, debt to equity ratio and earnings per share is low in 2015 as compared to 2014 and the quick ratio and the equity ratio is high in 2015 as compared to 2014.
Conclusion
The genesis energy ltd. is financially good as compared to AGL energy limited. As the ratio analysis has been done which shows the position of both the companies and according to that analysis, the conclusion has been made. Both the companies is performing well but after comparison Genesis energy limited is quite good against AGL energy limited.
The investor should invest in Genesis energy limited as this company earning more profit in 2015 as compared to 2014. The AGL Energy limited is also performing well, thus the investor can also invest in that also. Both the companies are financially good and have the good reputation in market and achieve many targets and the oldest company of the Australia.
References
Genesis energy (2015), Genesis energy annual report 2015, retrieved on 22 august 2016 from https://www.asx.com.au/asxpdf/20150904/pdf/4313hvljxkcz9m.pdf
ASX Release (2015), AGL annual report 2015, retrieved on 22 august 2016 from https://www.asx.com.au/asxpdf/20150826/pdf/430t27pwhhbmr3.pdf
Chand, S (2015), Ratio analysis: meaning, classification and limitation of ratio analysis
AGL energy in action, our company, retrieved on 22 august 2016 from
https://www.agl.com.au/about-agl/who-we-are/our-company
Genesis energy (2016), about us-company information, retrieved on 22 august 2016 from
https://www.genesisenergy.co.nz/company-information
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