AGL Energy Limited today provided earnings guidance for the financial year ending 30 June 2017 (FY17) at its Annual General Meeting (AGM).

Assuming normal trading conditions for the remainder of the year, AGL expects FY17 Underlying Profit to be between $720 million and $800 million.

Underlying Profit is statutory profit after tax adjusted for Significant Items and changes in the fair value of certain electricity derivatives.

AGL expects the main contributors to its FY17 Underlying Profit growth will be:

• Wholesale electricity margins (noting comments made on 10 August 2016 that the phasing of this benefit will reflect the competitive environment, the timing of retail price changes and AGL’s hedging profile);
• The continued execution of the customer value strategy; and
• The delivery of operational transformation targets.

AGL expects year-on-year improvements to be weighted towards the second half of FY17.
This guidance statement reflects the strength of AGL’s business despite previously disclosed challenges including unseasonably mild weather in July/August and the anticipated reduction in gas portfolio EBIT of at least $100 million compared with FY16.

AGL notes that enterprise bargaining agreement (EBA) negotiations continue at AGL Loy Yang and AGL Macquarie.

About AGL
AGL is one of Australia’s leading integrated energy companies. It is taking action to responsibly reduce its greenhouse gas emissions while providing secure and affordable energy to its customers. Drawing on over 175 years of experience, AGL serves its customers throughout eastern Australia with meeting their energy requirements, including gas, electricity, solar PV and related products and services. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, solar, landfill gas and biomass.