Australia's largest generator AGL Energy has posted a slump in full-year profit amid "unprecedented" market conditions as it continues to search for a new boss.
"The second half has been one of the most challenging and complex periods in AGL's operating history," outgoing CEO Graeme Hunt told an investor briefing on Friday.
Mr Hunt said the selection process to appoint a new chair is "well-advanced" and would be announced before an annual general meeting in November and the global search for a managing director and chief executive officer was still underway.
The leadership team quit after billionaire shareholder Mike Cannon-Brookes scuppered the energy giant's planned demerger, which would have created an energy retailer and hived off coal-fired operations.
Mr Hunt also disclosed the Newcastle gas storage facility near Tomago is no longer for sale.
AGL's bottom line net profit for the 2021/22 financial year was $860 million, including $486 million on impairments, revalued contracts, and costs associated with its cancelled restructure.
Underlying net profit slumped 58 per cent to $225 million and underlying earnings before interest, taxes, depreciation and amortisation was $1.218 billion, down 27 per cent from a year ago.
Shares in AGL fell three per cent or 25 cents to $7.91 in early trading.
Mr Hunt said the underlying profit was within market guidance, despite challenging conditions that intensified in the second half when higher fuel costs made it less profitable to generate electricity.
"Other factors that negatively impacted the result included planned and unplanned plant outages, unprecedented market volatility and suspension, milder weather, increased residential solar volumes and margin compression via customer switching," he said.
Total generation volumes were broadly flat from 2020/21 at 40,755GWh.
An AGL board review of how an integrated AGL will operate continues, with initial outcomes due at the end of September, along with detailed guidance on the year ahead.
"We are reviewing the best decarbonisation pathways available to an integrated AGL and how these can be optimised to benefit both shareholders and the communities in which we operate," Mr Hunt said.
AGL believes earnings in 2022/23 will remain "resilient" despite the challenging energy industry and market conditions.
Largely hedged across fiscal 2022 and fiscal 2023, AGL says it is well positioned to benefit from sustained higher wholesale prices from 2024.
AGL will pay a final dividend of 10 cents per share brings the total for the year to 26 cents per share, unfranked.
