Investors in the dark over AGL’s impending earnings outlook

AGL has so far said it won’t go to the market for a capital raising.

Of the companies that are likely to make a cash call in coming months, investors are closely watching AGL Energy.

Some think it may be in urgent need of an equity raising for as much as $1bn, although the electricity generator and retailer has ruled out tapping the market for now.

For the moment, it needs to concentrate on finding a new chief executive and refreshing its board.

When it reports its results on August 19, the big area of interest will be its earnings outlook for the 2023 financial year. So far, investors are unclear about what it expects to be earning in the year ahead.

The big challenge for AGL, which is advised by Macquarie Capital, is that it needs to pay out on energy contracts that it has not been able to fulfil because of outages.

With futures agreements, pricing is locked in two years ahead, and with the energy price far higher it will have to put collateral against it.

AGL was recently on the verge of demerging its coal-fired power business Accel Energy, but that was shelved following pressure from activist investor Mike Cannon-Brookes, the Atlassian co-founder.

Some believe the issue will play out around October.

Perhaps AGL is hoping it will find a buyer before that time, with former suitor Brookfield remaining on the register.

Shares in AGL closed 1.16 per cent lower at $8.54, with its market value at $5.81bn.