Agl Energy Limited

3144 words 13 pages

ACCT 1110 – Accounting for Corporations tudent Name: Hui Daniel s3109770 Li Allen s3222285 Liu Nicole s3218667

Tutor Name: Dr. Mahesh Joshi Lecture Time: Tuesday 9:30 Assignment Due: Monday 7th of September 2009

Executive Summary

The purpose of this document is to record the analysis of AGL Energy Limited’s the external environment, internal business activities, financial situation and some parts of the annual report such as PPE, intangible asset and Leased assets & liabilities.

There are two main parts of this document. The first part is the industry analysis, which is through Porters 5 Forces to
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E, 1979). AGL controls both its power generation as well as distribution therefore the bargaining power of the suppliers is negligent for this company.

3.0 Company Analysis

3.1.1 Business & operating activities

AGL’s business comprises the following four main business segments according to the annual report 2008. The primary business segments format is based on the consolidated entity’s management and internal reporting structure. (Figure1 showed) • Retail Energy – Buying and selling of gas and electricity. • Merchant Energy – Buying and selling of gas and electricity; operating and maintaining of power generation infrastructure; and extraction and sale of liquid petroleum gas. • Gas and Power Development – Exploration, extraction, production and sale of coal seam methane gas; construction of power generation infrastructure; and extraction and sale of crude oil. • Energy Investments – Investments in energy entities.

The Gas and Power Development segment is now reported as a new segment. The businesses within this segment were previously included as part of the Merchant Energy segment. The discontinued operations are separated from continuing operations as well. (AGL annual report 2008)
Figure 1

3.1.2 Changes in Operational Activities

In the