News: AGL Energy H1 profit inches up on higher power prices

MELBOURNE, Feb 9 (Reuters) - AGL Energy Ltd (AGL), Australia's no.2 power and gas retailer, reported a 3.7 percent rise in half-year underlying profit on Thursday on the back of higher electricity prices and said it expects its full year profit to come in at the upper end of its guidance.

Underlying profit for the six months to December rose to A$389 million ($297 million) from A$375 million a year earlier. The result was slightly better than a forecast of A$383 million from Citi.

"In our electricity portfolio, the impact of rising wholesale prices is expected to continue," AGL Chief Executive Andy Vesey said in a statement.

AGL said it expects its full year underlying profit to come in at the high end of its forecast range of A$720 million to A$800 million, up from A$701 million last year, which is in line with market forecasts.

AGL raised its half year dividend to 41 cents a share from 32 cents a year ago. That compared with a forecast of 43 cents from Citi.

($1 = 1.3087 Australian dollars)