News: AGL AGL Energy core profit jumps 11 pct, sees further growth in 2017

AGL Energy (AGL) , Australia's no.2 power retailer, reported an 11 percent rise in annual underlying profit and said on Wednesday it expected to deliver growth in the 2017 financial year, even after a tough start.

AGL Chief Executive Andy Vesey said unusually mild weather in July had affected earnings in the first month of the new year, and told Reuters the company expected recent volatility in wholesale prices to ease.

Underlying profit rose to A$701 million ($538 million) for the year to June 2016 from A$630 million the previous year, just short of analysts' forecasts around A$710 million.

Growth was mostly driven by cost-cutting, better retail margins and a full-year contribution from the Bayswater and Liddell power stations that AGL bought in 2014.

It raised its final dividend to 36 cents from 34 cents a year ago, in line with market forecasts.

At the bottom line, AGL reported a net loss of A$408 million, hit by a writedown on coal seam gas assets that it flagged in February it was going to exit as the projects were no longer justifiable in light of weaker oil and gas prices.