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

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

AGL Energy Limited (ASX:AGL)
Image source: © Pvl | Megapixl.com

Highlights

  • AGL Energy has extended outage of Loy Yang till second half of September.
  • Earlier, AGL said that power at its Victoria power station would restore by April 2022.
  • Loy Yang fulfils around 30% of Victoria’s power requirement.

Australia’s largest energy producer, AGL Energy Limited (ASX:AGL) informed the market on Friday morning that it has completed the technical assessment of the time needed to bring its power station – Loy Yang A Unit 2 to normal operations. The technical assessment results indicated that the outage would extend further till the second half of September, over a month more than the previous target.

AGL said that the outage is extended due to roadblocks created by the availability of specialised materials and global supply chain issues, adding to the woes of Aussies.

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At 11:34 AM AEST, the shares of AGL were spotted trading 0.46% lower than the previous close to trade at AU$8.72 per share with market capitalisation of AU$5.89 billion.

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.

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Australia’s largest energy producer, AGL Energy Limited (ASX:AGL) informed the market on Friday morning that it has completed the technical assessment of the time needed to bring its power station – Loy Yang A Unit 2 to normal operations. The technical assessment results indicated that the outage would extend further till the second half of September, over a month more than the previous target.

AGL said that the outage is extended due to roadblocks created by the availability of specialised materials and global supply chain issues, adding to the woes of Aussies.

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