AGL Energy released positive results as underlying EBITDA and profit have increased by 12% and 11% respectively. This is largely due to management’s focus away from poor performing natural gas assets and more toward retail electricity generation & distribution. As a result, AGL Energy is positioned strongly in the current energy environment relative to its competitors such as Origin Energy. AGL Energy’s capital management has been a key driver towards the financial position in which AGL Energy now stands in. It has combined strong net operating cash flows of $1.2 billion with a $260 million decrease in capital expenditure to allow for a $821 million debt reduction. As a result, AGL Energy’s gearing ratio has dropped from 28.6% to 25.7%. This will give AGL Energy plenty of headroom to navigate through volatile commodity prices. Click here for updated research.