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30. Deeds of cross guarantee

The wholly-owned subsidiaries identified in Note 26 have entered into a Deed of Cross Guarantee with AGL in accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 and are relieved from the Corporations Act 2001 requirement to prepare and lodge an audited financial report and directors’ report. The effect of the deed is that each party guarantees the debts of the others.

The following wholly-owned subsidiaries became a party to the Deed of Cross Guarantee during FY20:

  • Southern Phone Company Limited pursuant to an Assumption Deed dated 6 March 2020;
  • Perth Energy Holdings Pty Ltd, Perth Energy Pty Limited, Western Energy Holdings Pty Ltd, Western Energy Pty Ltd and WA Power Exchange Pty Ltd pursuant to an Assumption Deed dated 11 December 2019.

Set out below is the statement of profit or loss, statement of comprehensive income, statement of financial position and a summary of movements in retained earnings of the entities party to a Deed of Cross Guarantee.

Statement of profit or loss

AGL Energy Limited

AGL Generation Pty Ltd

2020
$m

2019
$m

2020
$m

2019
$m

Revenue

10,164

10,465

-

404

Other income

200

457

-

-

Expenses

(9,861)

(8,333)

-

(4)

Share of profits/(losses) of associates and joint ventures

17

33

53

(142)

Profit before net financing costs, depreciation and amortisation

520

2,622

53

258

Depreciation and amortisation

(537)

(437)

-

-

Profit before net financing costs

(17)

2,185

53

258

Finance income

64

85

1

-

Finance costs

(190)

(196)

(1)

(13)

Net financing costs

(126)

(111)

-

(13)

(Loss)/profit before tax

(143)

2,074

53

245

Income tax benefit/(expense)

200

(442)

(154)

47

Profit/(loss) for the year

57

1,632

(101)

292

Statement of comprehensive income

Profit for the year

57

1,632

(101)

292

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Remeasurement loss on defined benefit plans

(3)

(54)

(5)

(27)

Fair value gain on the revaluation of equity instrument financial assets

3

2

-

-

Income tax relating to items that will not be reclassified subsequently

(4)

12

1

8

(4)

(40)

(4)

(19)

Items that may be reclassified subsequently to profit or loss

Cash flow hedges

(35)

96

-

-

Cost of hedging basis adjustment

(3)

4

-

-

Income tax relating to items that may be reclassified subsequently

21

(30)

-

-

(17)

70

-

-

Other comprehensive (loss)/income for the year, net of income tax

(21)

30

(4)

(19)

Total comprehensive income for the year

36

1,662

(105)

273

Statement of financial position

AGL Energy Limited

AGL Generation Pty Ltd

2020
$m

2019
$m

2020
$m

2019
$m

Current assets

Cash and cash equivalents

113

78

-

1

Trade and other receivables

1,366

1,526

-

-

Inventories

320

313

-

-

Current tax assets

103

89

-

-

Other financial assets

64

848

-

-

Other assets

69

60

-

-

Total current assets

2,035

2,914

-

1

Non-current assets

Trade and other receivables

25

-

-

-

Inventories

59

57

-

-

Other financial assets

2,723

3,287

3,650

5,032

Investments in associates and joint ventures

135

150

-

-

Property, plant and equipment

3,218

3,153

-

-

Intangible assets

2,872

2,816

-

-

Deferred tax assets

347

-

-

-

Other assets

3

39

-

-

Total non-current assets

9,382

9,502

3,650

5,032

Total assets

11,417

12,416

3,650

5,033

Current liabilities

Trade and other payables

1,081

1,304

-

-

Borrowings

29

93

-

-

Provisions

238

192

-

-

Current tax liabilities

-

-

143

209

Other financial liabilities

979

596

-

-

Other liabilities

9

4

-

-

Total current liabilities

2,336

2,189

143

209

Non-current liabilities

Borrowings

2,962

2,637

-

-

Provisions

337

405

-

-

Deferred tax liabilities

-

10

256

102

Other financial liabilities

106

204

66

1,432

Other liabilities

143

132

-

-

Total non-current liabilities

3,548

3,388

322

1,534

Total liabilities

5,884

5,577

465

1,743

Net assets

5,533

6,839

3,185

3,290

Equity

Issued capital

5,603

6,223

2,878

2,878

Reserves

(50)

(33)

-

-

(Accumulated losses)/retained earnings

(20)

649

307

412

Total equity

5,533

6,839

3,185

3,290

Summary of movements in (accumulated losses)/retained earnings

AGL Energy Limited

AGL Generation Pty Ltd

2020
$m

2019
$m

2020
$m

2019
$m

Retained earnings/(accumulated losses) at beginning of financial year

649

(171)

412

1,639

Profit for the year

57

1,632

(101)

292

Dividends paid

(719)

(774)

-

(1,500)

Remeasurement loss on defined benefit plans, net of tax

(7)

(38)

(4)

(19)

(Accumulated losses)/retained earnings at end of financial year

(20)

649

307

412

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