Australia's AGL Energy cuts profit guidance
Australian gas and power retailer AGL Energy on May 2 cut earnings guidance for the 2022 financial year ending June 30 (FY2022) because of a fault at unit 2 of the Loy Yang A power station in Victoria.
The company expects underlying earnings before interest, tax, depreciation and amortisation of between A$1.23bn ($869mn) and A$1.30bn in the 12 months to June, down from the previous forecast of A$1.275bn and A$1.40bn.
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Underlying profit after tax is expected between A$220mn and A$270mn, down from the previous guidance range of between A$260mn and A$340mn.
"AGL currently expects that the unit will return to service by August 1, however, engineering assessments are continuing and AGL will inform the market of any material changes to this timeframe," the company said.
The estimated total financial impact of this outage is about A$73mn pre-tax based on an expected return to service by August 1. The financial impact split between FY2022 and FY2023 is expected to be about A$60mn pre-tax and approximately $13mn pre-tax respectively. The financial impact of the outage is not recoverable via insurance, it said.
AGL in March rejected a takeover offer from a consortium led by Canada's Brookfield Asset Management. The company last year announced plans to demerge into two separate entities that will both be listed on the Australian Securities Exchange.