Why did the AGL share price have such a lousy month in September?

Stressed business woman sits at desk with head resting on her hand

The AGL Energy Limited (ASX: AGL) share price had yet another disappointing month, falling to a multi-decade low of $5.22. Investors have continued to dump the energy company’s shares leading to a 10% loss for September.

At the time of writing, AGL shares are adding more pain to shareholder portfolios, down 0.26% to $5.77 apiece.

What’s happening with AGL lately?

It’s been a relatively quiet couple of months for the company, with its last market-sensitive news being its full-year results.

However, a catalyst dragging down AGL shares might be tough conditions for the national electricity market along with unstable electricity prices.

The company previously noted that a sharp decline in wholesale prices for electricity and renewable energy certificates affected its financial performance.

AGL regards the energy market in the 2021 financial year as one of the most difficult on record.

In addition, the increased demand to decarbonise its operations has impacted Australia’s largest carbon emitter. Nonetheless, management plans to turn things around as AGL becomes a more agile business.

At its Annual General Meeting (AGM) last week, the majority of shareholders voted in favour of AGL setting emissions targets. This is in accordance with the Paris Agreement which sets out a global framework to avoid dangerous climate change.

Shareholders strongly opposed the AGL board’s recommendation to vote against adopting decarbonisation targets.

In other news, AGL plans to transform the Liddell coal-fired power station into a hydro and solar energy facility after Liddell’s shutdown in 2023.

Only time will tell if the AGL share price can recover to its pre-COVID highs of about $20.

About the AGL share price

In 2021, the AGL share price has continued to plummet in value, losing more than 50% for investors. Over the past 12 months, its shares are deeper in the red and down almost 58%.

On valuation grounds, AGL presides a market capitalisation of approximately $3.8 billion, with approximately 658 million shares on its books.

The post Why did the AGL share price have such a lousy month in September? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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