AGL: The Inflation Beneficiary Hits a New 52-Week High Today

· This was reflected in underlying earnings (EBITDA), which rose +63% y/y to A$2.22 billion, surpassing the estimate of A$2.17 billion. Meanwhile, operating free cash flow hit A$1.74 billion, showing that AGL is making a comeback.

· Underlying profit surged to A$812 million, up from A$281 million y/y, smashing the A$795.7 million estimate.

· AGL declared a final dividend per shareof A$0.350,up from A$0.230 y/y.

· As for future proofing...AGL inked a deal to buy Australian big battery and solar farm developers Firm Power and Terrain Solar for A$250 million. This is a huge win, albeit a late one for AGL, as they’ve been trying to move away from coal for years. Shareholders would be pleased with this, and the company can afford the deal given its operating free cash flow of A$1.74 billion. The deal is expected to be completed this year.

· If you look at its chart - the market is optimistic that its business is finally turning around, despite the company losing star shareholders like Elon Musk earlier this year.