AGL Energy Ltd
(ASX:AGL) has been notified about the upcoming termination of its electricity hedging contract in regards to the Portland aluminum smelter in Victoria.
AGL says the first of the four smelter owners has already given notice of termination, and expects the other three to follow suit in the coming days.
The energy company says there is a 12 month notice period required for termination of the hedging contracts. That is, termination will occur in August next year.
AGL says it has written down the fair value of the hedging contracts in its FY16 accounts by $187 million post-tax.
AGL reported a net loss of $407 million at 30 June 2016.
