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31. Deeds of cross guarantee

The wholly-owned subsidiaries identified in Note 27 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 by way of an Assumption Deed dated 24 May 2019:

  • AGL Shipping Pty Limited
  • AGL LNG Pty Limited

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

2019
$m

Restated
2018
$m1

2019
$m

2018
$m

Revenue

10,465

9,724

404

4

Other income

457

31

-

-

Expenses

(8,333)

(8,728)

(4)

(4)

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

33

39

(142)

1,335

Profit before net financing costs, depreciation and amortisation

2,622

1,066

258

1,335

Depreciation and amortisation

(437)

(403)

-

-

Profit before net financing costs

2,185

663

258

1,335

Finance income

85

86

-

-

Finance costs

(196)

(210)

(13)

(14)

Net financing costs

(111)

(124)

(13)

(14)

Profit before tax

2,074

539

245

1,321

Income tax (expense)/benefit

(442)

(141)

47

(396)

Profit for the year

1,632

398

292

925

  1. 1 Comparatives have been restated for the adoption of AASB 9 Financial Instruments and AASB 16 Leases. Refer to Note 38(c).

Statement of comprehensive income

Profit for the year

1,632

398

292

925

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Remeasurement (loss)/gain on defined benefit plans

(54)

15

(27)

20

Fair value gain on the revaluation of equity instrument financial assets

2

-

-

-

Income tax relating to items that will not be reclassified subsequently

12

(5)

8

(6)

(40)

10

(19)

14

Items that may be reclassified subsequently to profit or loss

Cash flow hedges

96

(159)

-

-

Cost of hedging basis adjustment

4

-

-

-

Equity instrument financial assets

-

(3)

-

-

Income tax relating to items that may be reclassified subsequently

(30)

48

-

-

70

(114)

-

-

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

30

(104)

(19)

14

Total comprehensive income for the year

1,662

294

273

939

Statement of financial position

AGL Energy Limited

AGL Generation Pty Ltd

2019
$m

Restated
2018
$m1

2019
$m

2018
$m

Current assets

Cash and cash equivalents

78

452

1

1

Trade and other receivables

1,526

1,522

-

1

Inventories

313

294

-

-

Current tax assets

89

147

-

-

Other financial assets

848

922

-

-

Other assets

60

71

-

4

Assets classified as held for sale

-

74

-

-

Total current assets

2,914

3,482

1

6

Non-current assets

Trade and other receivables

-

-

-

319

Inventories

57

10

-

-

Other financial assets

3,287

3,459

5,032

4,712

Investments in associates and joint ventures

150

100

-

-

Property, plant and equipment

3,153

3,356

-

-

Intangible assets

2,816

2,343

-

-

Deferred tax assets

-

310

-

-

Other assets

39

64

-

-

Total non-current assets

9,502

9,642

5,032

5,031

Total assets

12,416

13,124

5,033

5,037

Current liabilities

Trade and other payables

1,304

1,348

-

11

Borrowings

93

26

-

-

Provisions

192

179

-

-

Current tax liabilities

-

-

209

-

Other financial liabilities

596

2,014

-

-

Other liabilities

4

2

-

-

Total current liabilities

2,189

3,569

209

11

Non-current liabilities

Borrowings

2,637

2,817

-

-

Provisions

405

435

-

-

Deferred tax liabilities

10

-

102

358

Other financial liabilities

204

259

1,432

151

Other liabilities

132

94

-

-

Total non-current liabilities

3,388

3,605

1,534

509

Total liabilities

5,577

7,174

1,743

520

Net assets

6,839

5,950

3,290

4,517

Equity

Issued capital

6,223

6,223

2,878

2,878

Reserves

(33)

(102)

-

-

Retained earnings/(accumulated losses)

649

(171)

412

1,639

Total equity

6,839

5,950

3,290

4,517

  1. 1 Comparatives have been restated for the adoption of AASB 9 Financial Instruments and AASB 16 Leases. Refer to Note 38(c).

Summary of movements in (accumulated losses)/retained earnings

AGL Energy Limited

AGL Generation Pty Ltd

2019
$m

Restated
2018
$m1

2019
$m

2018
$m

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

(171)

103

1,639

700

Profit for the year

1,632

398

292

925

Dividends paid

(774)

(682)

(1,500)

-

Remeasurement (loss)/gain on defined benefit plans, net of tax

(38)

10

(19)

14

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

649

(171)

412

1,639

  1. 1 Comparatives have been restated for the adoption of AASB 9 Financial Instruments and AASB 16 Leases. Refer to Note 38(c).

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