13. Investments in associates and joint ventures
2019 | 2018 | |
|---|---|---|
Investments in associates - unlisted | - | - |
Investments in joint ventures - unlisted | 150 | 100 |
Total investments in associates and joint ventures | 150 | 100 |
Reconciliation of movements in investments in associates and joint ventures
2019 | 2018 | |
|---|---|---|
Balance at beginning of financial year | 100 | 80 |
Additions1 | 60 | 28 |
Impairment loss recognised in profit or loss | - | (20) |
Share of profits after income tax | 33 | 39 |
Dividends received | (27) | (40) |
Other | (16) | 13 |
Balance at end of financial year | 150 | 100 |
- 1 During the year, AGL made $60 million of capital contributions to the Powering Australian Renewables Fund in accordance with the terms of the Investor Agreement and Commitment Deed.
Principal activities | Ownership interest | Carrying value | |||
|---|---|---|---|---|---|
2019 | 2018 | 2019 | 2018 | ||
Associates | |||||
CSM Energy Limited1 | Coal mine methane gas extraction | - | 35 | - | - |
Matter Technology Ltd | Energy management services | 20 | 19.9 | - | - |
Solar Analytics Pty Ltd2 | Solar PV monitoring | 31.2 | 37.2 | - | - |
Sunverge Energy Inc3 | Energy storage and management services | 15.6 | 22 | - | - |
Joint ventures | |||||
ActewAGL Retail Partnership | Gas and electricity retailer | 50 | 50 | 50 | 45 |
Energy Infrastructure Management Pty Ltd | Pipeline management services | 50 | 50 | 4 | 2 |
Central Queensland Pipeline Pty Ltd | Gas pipeline development | 50 | 50 | - | - |
Powering Australian Renewables Fund | Development and owner of renewable energy generation projects | 20 | 20 | 96 | 53 |
Total investments in associates and joint ventures | 150 | 100 | |||
- 1 CSM Energy was dissolved and deregistered on 22 April 2019.
- 2 During the year, Solar Analytics completed a capital raise in which AGL did not partake. As a result AGL's ownership interest was diluted by 6%.
- 3 During the year, Sunverge Energy completed a capital raise in which AGL did not partake. As a result AGL's ownership interest was diluted by 6.4%, and no longer has significant influence.
All the above entities are incorporated and operate in Australia except for Sunverge Energy Inc, which is incorporated and predominantly operating in the USA.
Aggregate information of joint ventures that are not individually material
2019 | 2018 | |
|---|---|---|
Current assets | 546 | 336 |
Non-current assets | 1,221 | 831 |
Total assets | 1,767 | 1,167 |
Current liabilities | 223 | 210 |
Non-current liabilities | 1,043 | 597 |
Total liabilities | 1,266 | 807 |
Net assets | 501 | 360 |
Revenue | 1,037 | 852 |
Expenses | (966) | (774) |
AGL’s share of joint ventures’ profit | 33 | 39 |
Commitments and contingent liabilities
AGL’s share of commitments and contingent liabilities of associates and joint ventures are disclosed in Notes 24.b and 25 respectively.
ACCOUNTING POLICY
Investments in equity accounted investees
AGL’s interests in equity accounted investees comprise interests in associates and joint ventures. Associates are those entities in which AGL has significant influence, but not control, over the financial and operating policies of the entity. A joint venture is an arrangement in which AGL has joint control and AGL has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are accounted for using the equity method.
Under the equity method, investments in associates and joint ventures are initially recognised in the Consolidated Statement of Financial Position at cost and adjusted thereafter to recognise AGL’s share of the profit or loss and other comprehensive income of the associates and joint ventures.
An impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in estimates used to determine the recoverable amount.
Unrealised gains on transactions between AGL and an associate or a joint venture are eliminated to the extent of AGL’s interest in the associate or joint venture. Unrealised losses are also eliminated, but only to the extent that there is no evidence of an impairment.