Australia's AGL Energy Trims Profit Forecast for Fiscal 2022

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Australia's AGL Energy Trims Profit Forecast for Fiscal 2022
02 May 2022
min read

News Synopsis

Australian power producer AGL Energy significantly forecasts full-year 2022 profits as a unit at the Loy Yang A power plant in Victoria that shut down after an electrical failure associated with a generator. 

The company currently has a profit after tax of $220 million to A$270 million in 2022, the previous forecast of A$260 million and A$340 million. In 2021, the company reported a base profit of A$537 million. The company's Loy Yang power plant unit was shut down in mid-April due to a defect in the generator rotor insulation.

According to the company, the effects of the outage cannot be recovered by insurance, with an estimated financial impact of approximately A$60 million in 2022 and an additional A$13 million in 2023.

Sydney-based power producers are hoping that the failed unit will be back online by August 1, and are considering options to delay planned shutdowns of power plants and offset shorter energy locations.

AGL will be split into major electricity producers and carbon-neutral energy traders by June 2022. It has been hammered by the influx of cheap solar and wind power and the government's pressure on utilities to cut power prices for households.

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