AGL Energy forecasts rise in FY13 profit
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Nicholas Grove is a Morningstar journalist.
AGL Energy (AGK) expects underlying profit after one-off items and adjustments for fiscal 2013 to be in a range of $590 million to $640 million, up from $482 million in fiscal 2012.
One of the main reasons for the expected increase in earnings is the contribution from the Loy Yang A power station in Victoria that was acquired in June 2012, the country's second-largest electricity and gas retailer said at its annual general meeting on Tuesday.
Morningstar's most recent forecast was for a profit of $588.8 million in fiscal 2013.
AGL said its earnings are expected to be more skewed towards the second half of fiscal 2013, with approximately 55 per cent of the full-year profit being recognised in the second six-month period.
A number of executive changes were also announced by AGL on Tuesday, with Ken Hodgson, group general manager retail energy, to retire and be replaced in the role by AGL's current chief financial officer (CFO) Stephen Mikkelsen from 2 January 2013.
As a result of Mikkelsen's appointment, Brett Redman will assume the role of CFO. Redman was previously head of group strategy and finance at AGL. He will commence in the role of CFO on 14 November 2012.
Mikkelsen was appointed CFO at AGL in 2006. He has over 17 years experience in senior financial positions in Australian and New Zealand energy markets, including as CFO of Snowy Hydro and Contact Energy, AGL said.
Redman joined AGL in 2007 and was chairman of GEAC (Loy Yang Power) until its acquisition by AGL. Prior to joining AGL, he held numerous finance roles at BOC in the Pacific and US. He also has a background in chartered accounting firms.
Last Friday, AGL announced it was suspending development of the first stage of its 1000 MW Dalton power station in New South Wales due to adverse market conditions.
State and federal government approvals for the development remain valid for the next five years, the company said.