Why is AGL share price slipping today?

Posted: 8 September 2021 12:37 pm
News
AGL-Shares-08Sept_1800x1000_Finder

Shares in electricity giant AGL Energy are down more than 55% in the last 12 months.

Shares in electricity giant AGL Energy (ASX: AGL) have continued on their downward slide. The stock has already lost nearly 15% of its value in the past month and on Wednesday was down another 2.2% to $6.20 at the time of writing.

Why is the AGL stock price under pressure?

The energy producer and retailer is feeling the heat on news that a major proxy advisor, Institutional Shareholder Services, has backed a resolution demanding the company implement emissions reduction targets ahead of its proposed demerger.

The resolution was proposed by the Australasia Centre for Corporate Responsibility (ACCR) last month and calls on the company to disclose emissions reduction targets as well as detail how the demerged companies' remuneration policies will incentivise progress towards the targets.

The move comes ahead of AGL's annual general meeting on 22 September and is designed to push the company to provide clear climate goals sooner.

AGL already suffered a first strike against its remuneration report at last year's AGM with 46.5% of shares voted against the pay structure. A second strike will prompt a board spill and is a looming concern for investors.

Demerger disruption

Australia's biggest electricity retailer has already been under fire from shareholders over its plan to split into a new company, AGL Australia under Christine Corbett, while former chairman Graeme Hunt will lead a new coal-focused generator, Accel Energy.

Accel will hold a 15-20% stake in AGL Australia.

AGL Energy repeatedly downgraded its earnings outlook amid the twin challenges of lower power prices and an accelerating transition to renewables and reported a $2 billion full year loss.

It also subsequently announced a shakeup of its top management team, with the executive team cut from 9 members to just 5 after the exits of executive of corporate affairs Elizabeth McNamara, executive general manager of future business and technology, John Chambers, and EGM of strategy and corporate development, Joao Segorbe.

Investors, already fretting about a more than 55% fall in the value of their holdings in the past year, would be hoping the uncertainty is resolved soon.

Considering buying AGL Energy shares?

If you are keen to buy shares in AGL Energy, you can invest through an online share trading platform.

Keep in mind that not all platforms offer the same list of stocks. Some offer US stocks only, so make sure to select a platform that offers ASX-listed stocks.

Choose from the dozens available for Australian investors. Compare the features and fees from the plethora of trading platforms available.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site