AGL to divest non-core assets

AGL has declared $435 million in asset  impairments  for FY15, leading to a decision to narrow their upstream gas focus down to a small number of core projects.

The company expects underlying profit for FY 15 to approach the high end of guidance, a range of $575 to $635 million.

The energy provider announced this morning it would divest interests in non-core and underperforming assets and activities.

Core projects to be retained include the Camden Gas Project, Gloucester Gas Project, Silver Springs underground storage facility, Wallumbilla Liquefied Petroleum Gas Plant, and the Newcastle Gas Storage Facility which opened in June.

However AGL said it will not proceed with the proposed Camden Northern Expansion Project, on hold since February 2013.

Other projects to be scrapped include two Hunter Gas Project assets as well as “associated agriculture activities”, the Cooper Oil Project, Spring Gully and Moranbah assets.

AGL has regarded their 50 per cent holding of the Moranbah Gas Project as an asset “held for sale” over the past 18 months, and said that no deprecation charges associated with Moranbah have been brought to account, however depreciation charges will be accounted in the new period.

AGL will also sell their interest in the Cooper Oil Project, with losses of $7 million expected to be recognised as a significant impairment charge in the FY15 accounts.

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