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