AGL Energy (ASX:AGL) pushes restart of power station in Victoria till September

June 10, 2022 01:26 PM AEST | By Sonal Goyal

AGL Energy (ASX:AGL) pushes restart of power station in Victoria till September — Image source: © Pvl | Megapixl.com

Details of the Loy Yang A Unit 2 extended outage

As per the ASX-announcement, a unit of Loy Yang reported an electrical fault with the generator on 15 April 2022. The company conducted testing and ascertained that the generator rotor had broken down.

After initial technical testing, AGL expressed that its unit would return to service by 1 August 2022, which is now extended to the second half of September. Since the initial outage, AGL has been working closely with its suppliers and engineers to bring the unit power station back to safe and normal working conditions.

Loy Yang A Unit 2 outage’s financial impact

Image source: © Mirage1 | Megapixl.com

The ASX-listed energy retailer reportedly said it would provide an update on the financial impact of an outage at its power station in a new financial year. The financial year of AGL starts on 1 July.

In addition, the company anticipates that it will not issue the earnings guidance for FY23 until it completes the review of its strategic direction. AGL said it would not be able to complete the review of strategic direction by September.

The management said in a statement that the financial impact of the outage could not be recovered through insurance.

About Loy Yang

AGL claims that Loy Yang is one of the largest power stations in Victoria. The power produced at the Loy Yang power station is enough to fulfil the power requirement of around 2 million average Australian homes annually. It is an integral part of the nation’s electricity market, generating circa 30% of Victoria’s power requirements in a year.

Loy Yang supplies coal to both Loy Yang A and B, which fuels approximately 50% energy requirement of the state.

Do read: Why MP1, LOV, 5EA jumped yesterday despite weak market

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.