AGL Energy Limited
(ASX:AGK) has warned there’s been a fall in energy demand due to a record warm winter that will reduce its underlying profit.
AGL says it expects underlying profit between $560 million and $610 million in fiscal 2014, compared with an underlying profit of $585 million in fiscal 2013.
Record warm July to September temperatures in much of eastern Australia have reduced energy demand and will cut underlying profit by between $25 million and $30 million.
Changes to accounting for defined benefits superannuation arrangements will also reduce underlying profit by about $10 million.
AGL says continuing high levels of competitive behaviour and price discounting are starting to abate but will constrain profit growth in fiscal 2014.
AGL generated a net profit of $389 million in fiscal 2013.
