Boral laments energy costs
Boral reported a strong 53 per cent increase in NPAT to $56.8 million over the 6 months to December 2022, thanks in part to strong cost discipline in the challenging inflationary environment.
Source: ASX, Boral
Over the remainder FY23 Boral aims to maintain a strong cost focus.
Energy price conditions have eased
The driver and truck shortages should be righted now that population growth is running at full tilt, but you can understand the concern around energy prices.
Ironically, the ALP won its election campaign on providing $275 cheaper energy bills for households by 2025 due to its plans to increase renewable energy sources - but to say that global events have overtaken matters would be something of an understatement.
The AEMO reported that wholesale electricity prices pulled back dramatically by 57 per cent from excruciating highs of $216/MWh to $93/MWh between the September and the December quarters last year.
East coast gas prices also fell from $26/GJ to $17.79/GJ.
Source: AEMO
Energy price conditions have eased more generally following the Federal Government's intervention in the electricity market in December, which have seen futures for the next two years significantly cut.
Source: AEMO
From an inflation perspective this will obviously in time bring good news, as inflation will start to fall over the medium term.
But you can understand the angst of listed companies because energy prices are still well above 2021 levels and are cutting into profit margins.
Electricity price offerings for households were 20 to 30 per cent higher over the past year, and in the short-term households are expected to come under further pressure with Energy Australia, Origin, and AGL all expected to increase gas rates over February and March.
