well well - let me first say I have way more questions than answers and its not very clear at all. Abit concerned that they are talking about $2.60/MWh margins in AUS in 2018, also I note they compare margins from year to year, that's like comparing apples to grapefruit or is it bitter lemons. $3.00/MWh margin should be like <$1 per MWh compared to the $4.00+ of previous years... due to the extra $36.6m tax cost below the line which should be included in this years numbers. Good to see volumes are staying steady in AUS.
They talk about this 300MW of underpinning renewables that they have signed agreements for - has that been announced to the market, why haven't they told us about that. Surely that is pretty big stuff...and would think it would be required to be announced, even if the project is not ready to start.....Who is it with, is it with a credible party or what - will it ever get off the ground.. I think that if they say stuff like that they should be able to tell us more - AGL, Origin etc do - they make announcements and the papers cover it and all....
Certainly not simply and will have to have a good review of it - probably a whole day its so hard to follow. But the one thing I get out of it is that the Australian business has pretty much peaked/stalled and that everything is now really down to them growing the US business... that business has way more potential in size but also way bigger competitors than the likes of AGL and Origin - so how will they take to it. I assume from what they are saying and the reduced AUS margins that AGL and Origin are competing aggressively, so what will the incumbents in US do - surely they are watching this space.
EPW Price at posting:
$1.19 Sentiment: None Disclosure: Not Held
