Adelaide Advertiser
24 February 2011, Page: 52
AGL Energy is likely to delay billions of dollars worth of renewable energy projects until there is greater certainty around carbon pricing and better prices for renewable energy credits. The company yesterday posted a 30.4% rise in first half statutory net profit and said it expected a similar performance from its retail and wholesale electricity businesses in the second half. The electricity and gas retailer said lead sales for January and February were up about 25%, after the company added 42,000 electricity customers in the first half of 2010 11.
Its net profit was $239.6 million for the six months to December 31, 2010, up from $183.7 million in the first half of 2009. Underlying profit, which excludes significant items, fell 3.7% to $226.2 million after worse than expected earnings from the Loy Yang coal fired power station in Victoria because of mild temperatures. AGL Energy maintained guidance of underlying profit for the full year of between $415 million and $440 million. "We are expecting in the second half a very strong performance from the retail business and certainly a higher result than they achieved in the second half last year", chief executive Michael Fraser said.
Earnings for the retail division grew by 5.6% in the first half, reflecting an increase in the gas and electricity gross margin. Mr Fraser said AGL Energy would increase its marketing spend to attract another 400,000 to 500,000 customers in NSW, after it missed out on any assets in the NSW electricity privatisation last December. AGL Energy, which is developing the largest wind farm in the southern hemisphere in Victoria, said it would hold off approval of further renewable energy projects until a carbon price was introduced. AGL Energy declared an interim dividend of 29¢ a share, unfranked.
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