Boiler outages at AGL’s coal-fired Liddell Power Station in the New South Wales Hunter Valley are likely to cost the company as much as $20 million.
Inspectors may need to repair all four units at Liddell, which would result in outages throughout the next two months.
The financial impact of the outages is estimated at $15 million to $20 million net profit after tax all this year. The estimate reflects both the direct loss of generation revenue and estimated broader impacts on the electricity trading portfolio.
AGL acquired Liddell in 2014 as part of the $1.5 billion takeover of state-owned Macquarie Power, however, the power station is slated for closure in 2022 as part of the company’s ongoing plan to reduce its greenhouse gas emissions.