BUZZ-Australia's AGL, Origin edge up; MS warns of margin hit after govt’s free solar power plan
Reuters
Nov 05
BUZZ-Australia's AGL, Origin edge up; MS warns of margin hit after govt’s free solar power plan
** Shares of utility firms AGL Energy AGL.AX and Origin EnergyORG.AX advances between 0.3% to 0.7%, tracking broader utilities' sub-index .AXUJ gains of 0.7%
** Morgan Stanley flags FY27 margin pressures for both firms after the Australian government pledges free daily solar power expected from 2026
** Expects a negative EBITDA impact of ~A$70 mln ($45.49 mln) each for AGL and ORG, before mitigation
** Mitigation includes repricing non-free tariff components, reduced market discounting to offset costs - MS
** YTD, AGL down 21.7% vs ORG and AXUJ's gains of 9.7% and 9.4%
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