Shares in AGL jumped 14 per cent after the company revealed that its underlying pre-tax earnings would jump by about $100 million this year while its post-tax underlying profit would be between $255 million and $285 million which is an apparent increase from its previous guidance of between $200 million and $280 million.

Next year would be even better. Underlying profit after tax could more than double this year’s earnings and be between $580 million and $780 million.

Last week, AGL announced its energy prices in Queensland would increase by 26 per cent. Other retailers have similar increases.

To alleviate the increases, the State Government would pay $550 to every household while pensioners and concession card holders would receive more.

AGL said the increase in the profit guidance was because of an improved second half which had been driven by increased generation.

The increase predicted for 2024 was based on sustained periods of higher wholesale electricity pricing, expected improvements in plant availability, the start up of batteries at Torrens Island and Broken Hill as well as an expectation that forced outages would not occur.

Managing director Damien Nicks said AGL had positive momentum in operational performance, continued customer growth and progress in delivering its strategy.

“Looking ahead to 2024, without the challenging energy market conditions that we saw at the start of this financial year, namely widespread planned and unplanned outages coupled with unprecedented market volatility, we expect 2024 to be a stronger year as we see sustained recovery of wholesale electricity prices roll through,” Nicks said.