AGL Energy Ltd. has upgraded its full-year profit outlook, pointing to strong performance across its coal-fired power stations and an impending surge in electricity demand from power-hungry data centres.
The energy giant now expects underlying net profit for the full fiscal year to be between AU$610 million to AU$680 million, up from the previous guidance of AU$580 million to AU$680 million.
AGL CEO Damien Nicks said the revised figures “reflect the continued strong operational and financial performance of the business since the half year results”.
He credited improved plant availability, particularly across AGL’s thermal generation fleet, alongside disciplined cost management and stronger retail market performance.
Operationally, AGL’s generation fleet achieved an equivalent availability factor of 83.2 per cent for the nine months to March 31, bolstered by the Bayswater power station in NSW, which clocked a 98.6 per cent availability factor in the third quarter.
The company also reassured the market it is well-insulated against the current global fuel crisis, with its backup diesel storage sitting near capacity. Additionally, AGL expects to pocket approximately AU$750 million by the end of May from the sale of its 19.9 per cent stake in Tilt Renewables.
“AGL is also well placed for at least the next three months during the global fuel crisis, with current diesel storage near capacity for the generation assets, and we expect ongoing supply as an essential services provider,” the CEO said.
Looking ahead, Nicks flagged a massive medium-term demand boom underpinned by electric vehicles, residential electrification, and an exponential rise in domestic AI-led data centres.
Data centre energy consumption in the National Electricity Market (NEM) is forecast to balloon from five terawatt hours today to a potential 34 terawatt hours if all pipeline projects clear development.
Nicks offered early guidance on what will shape next year’s ledger. Earnings will be supported by a full-year contribution from the newly commissioned 500-megawatt Liddell battery in NSW and ongoing cost cuts.
However, the energy provider warned of potential headwinds, including softer global market conditions and lower wholesale electricity spot prices.
