(Adds details on power prices in Australia, background)
Feb 8 (Reuters) - AGL Energy Ltd AGL.AX , Australia's biggest power producer, reported a 27 percent rise in half-year underlying profit on Thursday, benefiting from soaring electricity prices.
Underlying profit for the six months ended Dec. 31 rose to A$493 million ($385 million) from A$389 million a year ago. Analysts at Citi had forecast an interim profit of A$500 million.
AGL reaffirmed that it expects underlying profit for fiscal 2018 between A$940 million and A$1.04 billion, in line with analysts' consensus forecast for a profit of A$1.02 billion. prices have soared in Australia due to the rise of wind power, which has led to the closure of several coal-fired plants and boosted demand for expensive gas-fired power.
AGL is looking to fill a looming gas supply shortfall in southeast Australia and break the grip of the market's major gas suppliers, led by ExxonMobil Corp XOM.N and BHP Billiton BHP.AX BLT.L . which has been blamed for being one of the biggest culprits of carbon pollution in Australia, has committed to gradually ditch coal for gas and renewable power. It recently rejected extending the life of its coal-fired Liddell plant beyond 2022, saying that power from gas, wind and solar would be cheaper to produce. company raised its half-year dividend to 54 Australian cents a share from 41 Australian cents a year ago. ($1 = 1.2789 Australian dollars)