The market may be pushing higher on Friday, but that hasn't stopped the AGL Energy Ltd (ASX: AGL) share price from continuing its decline.
This morning the energy company's shares tumbled to a 52-week low of $20.57, bringing their 12-month decline to a sizeable 26%.
Why are AGL Energy's shares at a 52-week low?
Despite the integrated energy company achieving a 97% increase in statutory half-year earnings per share to 94.8 cents and growing its interim dividend by 32% to 54 cents per share in February, this result was actually below many broker's expectations.
This appears to have weighed heavily on its share price, along with concerns that Royal Dutch Shell is thinking about stepping into the Australian energy market.
Given Shell's $345 billion market capitalisation, there are fears that its entry into the local market could trigger a massive shake-up for the sector. This would be bad news for AGL Energy and industry rival Origin Energy Ltd (ASX: ORG).
One positive for its shareholders, though, is that last week Ord Minnett gave AGL Energy's shares an accumulate rating with a $24.50 price target.
