Market Herald logo

Subscribe

Be the first with the news that moves the market
  • AGL Energy (AGL) extends the outage period of its Loy Yang A Unit 2 to the second half of September after completing a technical assessment of the scope and duration of work
  • The outage extension is mainly caused by global supply chain issues and the availability of specialised materials, says the company
  • The FY23 financial impact of the extended outage will be provided by AGL in the new financial year
  • As a consequence of the ongoing market volatility and the fact that the review of AGL’s strategic direction will not be completed until September, AGL does not anticipate issuing FY23 earnings guidance before the review has been completed
  • Shares in AGL Energy are down 1.37 per cent to $8.64 as of 10:50 am AEST

AGL Energy (AGL) has extended the outage period of its Loy Yang A Unit 2 generator to the second half of September after completing a technical assessment of the scope and duration of work.

The outage extension is said to be driven by global supply chain issues and the availability of specialised materials.

Since the initial outage, AGL reported it has been working closely with its engineers and suppliers to plan and implement the necessary works to enable a safe and reliable return to service.

Loy Yang A Unit 2 initially went offline on April 15 following an electrical fault with the generator.

Subsequent testing determined that the generator rotor had failed and the company predicted its return to service was August 1.

The FY23 financial impact of the extended outage will be provided by AGL in the new financial year.

The company also confirmed that the financial impact of the outage is not recoverable via insurance.

As a consequence of the ongoing market volatility and the fact that the review of AGL’s
strategic direction will not be completed until September, AGL does not anticipate issuing FY23 earnings guidance before the review has been completed.

The station is Victoria’s biggest, supplying about 30 per cent of the state’s electricity.

AGL had completed a seven-year, $60 million investment project at the plant to convert all the four operating units from analogue systems to modern, digital control systems, a move it said was vital to ensure energy supply reliability.

Shares in AGL Energy are down 1.37 per cent to $8.64 as of 10:50 am AEST.

AGL by the numbers
More From The Market Herald

" Empire Resources (ASX:ERL) records further multi-element mineralisation at Yuinmery, WA

Empire Resources (ASX:ERL) has intersected more multi-element mineralisation at its Yuinmery project in Western Australia.

" R3D Resources (ASX:R3D) to commence drilling in QLD this weekend

R3D Resources (ASX:R3D) is gearing up to commence a drilling program at key copper and zinc…
The Market Herald Video

" DDH1 (ASX:DDH) launches share-buy back

DDH1 (ASX:DDH) has launched an on-market share buy-back program of up to 10 per cent of…
The Market Herald Video

" Lithium Australia’s (ASX:LIT) Envirostream receives first cash rebate for B-cycle scheme

Lithium Australia's (ASX:LIT) subsidiary, Envirostream Australia has received its first cash rebate for the B-cycle scheme.