AGL Energy Reports Loss Post Exit from Gas Business

Australia's AGL Energy Limited (AGL) on Wednesday reported a statutory loss after tax of A$449 million ($317 million) for the six months ended 31 December 2015 after writing down the value of its gas exploration and production business.

In the corresponding period last year, the company had reported a profit of A$308 million.

AGL’s underlying profit of A$375 million was up 24.2 percent on the prior corresponding period. The company said that FY16 underlying profit is expected to be within the upper half of the guidance range of A$650 to A$720 million, subject to normal trading conditions for the remainder of the year.

Earlier this month, AGL announced that the company had taken a strategic decision to exit the exploration and production of natural gas assets. “AGL recognised an impairment charge of A$640 million after tax (A$795 million pre-tax) against the carrying value of its gas exploration and production assets including an increase in rehabilitation provisions.”