Sydney - Wednesday - August 16: (RWE Aust Business News) -...

Sydney - Wednesday - August 16: (RWE Aust Business News) - The
Australian Gas Light Co (ASX:AGL) reported a net profit of $457 million
for the year to June 30 2006, down 49.5 per cent on the prior year's
$904.4m profit because that included a significant profit on the sale of
NGC.
Underlying revenue was up 9.5pc to $4.24 billion, mainly from the
acquisitions of Southern Hydro and the investment in the PNG upstream gas
project.
Profits from continuing operations were up 87pc to $457m because
of the writedown of the Electricity Networks assets of $193m.
A final dividend of 36.5c, fully franked, will be paid September
22 with record date September 8.
This brings dividends for the year to 67.5c.
Earnings per share (EPS) was 100.2c against 53.5c previously.

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Outlook
If AGL shareholders approve the proposal to merge AGL's
infrastructure and services business with Alinta and subsequent demerger
of New AGL, this profit result will be the last AGL will report as the
current entity.
Subject to unforeseen circumstances, including variations to
normal weather patterns, it is expected that New AGL will have EPS on a
pro forma basis for 2007 of 77.6c.
Alinta is also expected to provide earnings guidance for the
enlarged infrastructure group in its Scheme Booklet which will be
released concurrent with AGL.

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Result
AGL chairman Mark Johnson said it was a strong result from
AGL's core businesses, in particular the merchant and retail energy
businesses, where successful retail margin management remains a key
priority in light of continuing competitive market pressures.
"There was substantial progress during the year through strategic
acquisitions such as renewable power generator Southern Hydro, Upstream
Papua New Guinea (PNG) oil and gas fields and a 50:50 joint venture with
Sydney Gas," he said.
"Just prior to the financial year end, AGL also announced the
acquisition of a 50 per cent interest in the Moranbah coal seam gas
project in the Bowen Basin in Queensland."
Managing director Paul Anthony said AGL was now better able to
manage retail margins and defend market share sensibly.
"This strong profit result demonstrates the importance of the
merchant and retail energy businesses as the key assets of the new AGL
Energy company to be formed following consideration by shareholders
of the merger of AGL's infrastructure business with Alinta later this
year," he said.
"New AGL is positioned for future growth through strategic
initiatives such as its dual fuel customer retention strategy, retail
cost improvement programs and by optimising attractive opportunities in
new markets such as Queensland and Western Australia."
The Agility infrastructure asset management business continued to
deliver double digit growth in earnings following its expansion into new
markets during the year through strategic acquisitions in Queensland and
Western Australia.

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Segments
Retail Energy EBIT was up 18.8pc to $262.8m and Merchant Energy
EBIT up 179.8pc to $147.2m.
AGL's 32.5pc share of Loy Yang A Power Station EBIT increased
111pc to $22.8m.
Victorian Electricity Network underlying EBIT increased 12.9pc
while the NSW Gas Network EBIT was down 10pc to $119.2m.
Agility EBIT was up 11.6pc to $70.3m.