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BRIEF-AGL Energy updates on Portland hedging contract

Published 12/08/2016, 09:50 am
Updated 12/08/2016, 10:00 am
© Reuters.  BRIEF-AGL Energy updates on Portland hedging contract
AGL
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Aug 12 (Reuters) - AGL Energy Ltd AGL.AX :

* AGL update on Portland hedging contract

* AGL continues to expect the contracts to contribute to earnings in FY 2017

* Says expected the other three partners in the Portland facility will follow

suit over coming days

* Potential earnings impact on AGL from FY 2018 onwards is currently limited by

the strong futures market outlook for wholesale electricity prices

* In anticipation of termination event, fair value of contracts in question was

written down in its FY 2016 accounts by $187 million post-tax

* Expects Portland facility to continue to operate, meaning physical demand for

electricity from the smelter will continue

* Received notification from one of four Portland aluminium smelter owners in

Victoria terminating electricity hedging contracts with AGL

* Source text for Eikon ID:nASX7XGNN

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