AGL’s recent annual reports describe a company in decline. The underlying profit has fallen and the value of physical assets has been impaired. In response, AGL has cut both its operating costs and its sustained capital expenditure.

Measures of employee engagement and attrition indicate dissatisfaction and many talented staff have left the company. Returns to shareholders have disappointed despite a high dividend payout ratio of 75 per cent and not surprisingly the share price has fallen from about $20 five years ago to $6.50. This share price decline is around 74 per cent over just five years.