profit upgrade for agl

Profit upgrade for AGL
From: By Felicity Williams
July 13, 2006

A COLD start to winter has boosted 2005-06 earnings at the nation's largest energy retailer Australian Gas Light Company.

Sydney-based AGL, which is planning a $6.8 billion merger with Perth-based utility Alinta, is now targeting a 3 to 5 per cent increase in annual net profit over its earlier guidance of $408 million for 2005-06.
AGL managing director Paul Anthony said yesterday that colder-than-forecast winter conditions in the eastern states had particularly benefited the company's network and retail businesses.

Last August, AGL reported a 2004-05 net profit of $848.3 million, a result that was boosted by the sale of its stake in New Zealand gas distributor NGC Holdings and a one-off tax benefit.

Annual net profit excluding significant items stood at $386.8 million in 2004-05.

AGL also stuck to its previous forecast for a final dividend of 36.5 per share for the year ended June 30, 2006.

That compares with a 32 final dividend in the preceding financial year.

AGL shares rose almost 2 per cent or 33 to $17.90.

CommSec senior infrastructure analyst Paul Johnston said AGL's upgrade had not come as a surprise, given the favourable weather conditions.

"We had a hot summer, which created greater air-conditioning load, and then we had a quick cold snap at the start of winter, which led to a lot of heating load," he said.

"There was only a very small period in between where there was mild weather, which gives these businesses a bit of a kick along."

Other energy business and utilities would reap similar rewards, Mr Johnston said.

AGL also brought forward its 2005-06 results announcement date to August 16 from August 24.

Meanwhile, AGL's scheme booklet for its proposed merger with Alinta will be sent to shareholders in August or September, ahead of a shareholder meeting to vote on the scheme in October.

The merger will see Alinta acquire AGL's infrastructure assets and asset management business Agility for $6.45 billion, making it Australia's largest energy infrastructure company.

http://finance.news.com.au/story/0,10166,19770268-462,00.html