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## Retail Energy 

>Operating EBIT increased by 17% on the back of improved margins 

> Further improvements in operating efficiency, with net operating costs as a percentage of gross margin falling from 49.5% to 46.5% 

> Customer accounts increased by 52,000 and dual fuel customer accounts up 8.1% to 1.47 million 

## Merchant Energy 

> Operating EBIT fell by 2%, due mainly to the effects of the severe weather events experienced in late January/ early February 

> Improved rainfall increased dam storage and generation capacity at Eildon and Dartmouth 

> The AGL Hallett 4 Wind Farm was commissioned, and construction proceeded on the AGL Hallett 5, Oaklands Hill and Macarthur Wind Farms 

## Upstream Gas 

> Mosaic Oil was acquired during the year, adding 65 PJ to gas reserves and opening up new gas storage income opportunities 

> Proved plus probable (2P) gas reserves increased 32.4% to 2,089 PJ 

> First booking of gas reserves in AGL’s Hunter Gas Project 

<img src='content_image/285920.jpg'>

AGL’s Retail Energy business continued to perform strongly, offsetting the effects of unusually severe weather conditions on Merchant Energy’s results, and a much lower contribution from AGL’s investment in the Loy Yang A Power Station. 

