Why AGL Energy Limiteds shares are rallying today?

AGL Energy’s shares saw a surge of 9.730% today. This was a direct result of Investor Day, FY23 & FY24 guidance, and the dividend policy released by the company. The following are the reasons shareholders see good signs of profitability in AGL:

• EBITDA: Current dividend policy shows a higher EBITDA range for FY23 than the previously updated one with the range being $1330-$1375 million. FY24 has an even higher EBITDA range of $1875-$2175 million. This shows a positive outlook and gains shareholder confidence.
• NPAT: Similar increase in NPAT is shown with the same implications.
• Increased Generation and Improved Plant Availability: The Company anticipates increased generation due to improved plant availability and a reduction in forced outages. This indicates better operational efficiency and reliability, which can lead to higher revenue generation.
• Improved customer margin and services: The disciplined margin management and increased customer services mentioned in the guidance can enhance customer satisfaction and retention. This could lead to increased revenue from existing customers and potentially attract new customers.

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