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

Download table as spreadsheet

	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

Download table as spreadsheet


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

Download table as spreadsheet

	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

Download table as spreadsheet

	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