AGL Energy (ASX:AGL) lowers earnings guidance for FY22

Company News

by Lauren Evans

AGL Energy (ASX:AGL) has downgraded its earnings guidance for the 2022 financial year following a review of the anticipated financial impact of the generator fault at the Loy Yang Power Station in Victoria. 

It expects underlying EBITDA to be between $1.23 to $1.3 billion, down from the previous guidance range of between $1.27 billion and $1.4 billion. It also expects underlying profit after tax to be between $220 and $270 million, down from the previous guidance range of between $260 million to $340 million.

The company noted that the estimated financial impact of this outage is around $73 million pre-tax ($50 million after tax) based on the expectation that the unit will return to service by August 1. This includes the direct trading impacts and the estimated portfolio impacts through to the start of August.

The financial impact split between FY22 and FY23 is expected to be around $60 million pre-tax ($41 million after tax) and around $13 million pre-tax ($9 million after tax) respectively. AGL said the financial impact of the Loy Yang A Unit 2 outage is not recoverable via insurance. 

Shares in AGL Energy (ASX:AGL) are trading 0.1 per cent lower at $8.57. 

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