Here’s why AGL Energy (ASX:AGL) is in news today

Highlights: 

• AGL Energy has identified a fault while testing the final assembly of the generator rotor at Loy Yang Unit 2.
• It needs the original equipment manufacturer from Switzerland to work on the device to fix the defect.
• Post this update, AGL shares were spotted trading marginally higher on ASX.

Australian energy retailer AGL Energy Limited (ASX:AGL) announced today that it has identified a defect in the generator rotor at Loy Yang A Unit 2 while testing the final assembly of it. AGL said that it would require the original equipment manufacturer GE to fix the identified defect in Switzerland.  

AGL anticipates that the outage will extend until the second half of October 2022, and the company will make further amendments to the outage profile of other units to accommodate this change.

Meanwhile, shares of AGL Energy opened trading marginally higher on ASX today. AGL’s shares were quoted at AU$7.160 per share, up 0.561% at 10:18 AM AEST on ASX (13 September 2022). 

Update of AGL’s FY23 earnings guidance: 

As per the update, AGL’s FY23 earnings guidance is supposed to portray the extension of Loy Yang A Unit 2 outage and the preliminary results from the company’s strategic direction, which is about to release in late September.

However, after the defect was identified by AGL, the company thinks that further extension of the Loy Yang A Unit 2 outage might not have any significant material impact on its FY23 earnings.  

Key highlights of AGL’s performance in FY22: 

• AGL’s underlying EBITDA in FY22 fell 27% to AU$1,218 million.
• Furthermore, the company’s net profit after tax fell 58% from FY21 to AU$225 million in FY22.
• AGL believes that its earnings have dropped down in the given period due to planned and unplanned outages, milder weather, higher expenses due to rising demand, etc.

Things to know about AGL Energy:  

Image Source © 2022 Kalkine Media ®

AGL Energy Limited (ASX:AGL) is a 185 years old Australian energy retailer that supplies around 4.2 million energy and telecommunication customer services at the moment. AGL is also known for being the largest Australian private electricity generator within the National Electricity Market. The company owns coal and gas-fired generation portfolios, renewable energy sources including wind, hydro and solar, batteries and other energy generating and storage portfolios.