AGL writes down assets
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.