AGL Energy Ltd (ASX:AGK) has sliced its earnings forecast for the 2011 financial year as a result of extreme weather across Australia.
The energy retailer now anticipates underlying net profit to fall by around by $30 million to $35 million over the full year.
In the 12 months to 30 June underlying profit is expected to drop to between $415 million and $440 million, down from the previously forecast figure of up to $480 million.
AGL says its business has been impacted by extreme weather: Demand for electricity rose to record highs as a number of Australian states battled with the heat, while in Queensland flooding disrupted gas supplies and Cyclone Yasi forced the shut-down of the Yabulu power station.
AGL advises that is expects to maintain an interim dividend of 29 cents per share, unfranked.
For the year ended 30 June 2010, AGL reported a net profit of $356 million.
AGK Price at posting:
$14.38 Sentiment: None Disclosure: Held
