AGL Energy Limited (ASX:AGK) is expecting its annual underlying profit to grow to up to $640 million from $482 million the year before.
However, the energy company has warned of the anticipated negative impact from electricity pricing regulation in Queensland and South Australia.
Speaking at the company’s AGM, Chairman Jerry Maycock says regulators will damage competition and innovation in the national electricity market, making it an unviable investment proposition.
Mr Maycock believes the changes will also cause significant long term cost increases for consumers and create a risk of systemic failure for the market.
AGL maintains optimism about its prospects due to its clear strategy, strong balance sheet and a pipeline of growth projects.
AGL energy posted a net profit of $115 million in the 2012 financial year.
AGK Price at posting:
$14.60 Sentiment: None Disclosure: Held
