AGL confirms FY08 earnings guidance

AGL Energy Ltd has confirmed its earnings guidance for the 2008 financial year of an underlying net profit of up to $360 million.

AGL also said it expects earnings before interest tax depreciation and amortisation (EBITDA) of between $830 million and $875 million for 2007/08.

"AGL today reconfirms that it anticipates FY08 underlying net profit after tax to be in the range $330 - $360 million and EBITDA to be in the range $830 - $875 million," AGL said in a statement.

The energy retailer first gave the guidance in October last year and last reconfirmed it in February at its half yearly results.

It said the latest update followed a review of the company's earnings to date, including the preliminary results for April, and assumed that average weather conditions would occur in May and June and no unexpected circumstances would arise in the rest of the financial year.

"AGL's businesses have performed well since 31 December 2007 with earnings for the second half influenced by a strong performance from Torrens Island Power Station, predominantly due to a sustained period of extreme weather conditions in South Australia and March," AGL said.

"However, this has been partly offset by a lower than expected contribution from AGL's 32 per cent interest in Loy Yang A Power Station, mainly due to lower than anticipated electricity pool prices in Victoria over the summer months."

AGL said an increase in its sales and marketing activity had shown encouraging results with a net gain in customer account numbers since December 31.

It also confirmed the company's guidance for a dividend of between 52 cents and 55 cents per share for the 2008 financial year.