AGL writes down as­sets

Townsville Bulletin - - NEWS -

AGL En­ergy will make more than $ 600 mil­lion worth of write­downs on its gas pro­duc­tion ven­tures and sell un­der­per­form­ing busi­nesses as it bat­tles un­cer­tainty sur­round­ing oil and gas prices.

AGL has re­duced the value of its gas busi­ness by $ 603 mil­lion, $ 275 mil­lion of which re­lates to the Glouces­ter project in the NSW Hunter re­gion.

The write­downs will re­sult in a $ 435 mil­lion hit to AGL’s 2014- 15 net profit, but the com­pany reaf­firmed its fore­cast for an un­der­ly­ing full year profit in the top half of its $ 575 mil­lion to $ 635 mil­lion guid­ance range.

In­clud­ing pre­vi­ously an­nounced mea­sures, the com­pany will take $ 808 mil­lion worth of pre- tax write­downs for the year.

AGL said it would look to di­vest projects in Mo­ran­bah, the NSW Hunter Val­ley and South Aus­tralia’s Cooper Basin, but re­tain the Glouces­ter project, which has faced long- run­ning op­po­si­tion from en­vi­ron­men­tal­ists.

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