Why is the AGL share price heading south on Friday?

sad looking petroleum worker standing next to oil drillsad looking petroleum worker standing next to oil drill

The AGL Energy Ltd (ASX: AGL) share price is falling today along with the broader ASX market.

At the time of writing, the Australian energy giant’s shares are down 1.48% to $8.63.

For context, the S&P/ASX 200 Index (ASX: XJO) is shedding 0.95% to 6,953.3 points following heavy losses on Wall Street overnight.

What did AGL announce?

Investors are reacting to the company’s latest update, sending the AGL share price in the red.

According to its release, AGL advised that it has completed a technical review of its Loy Yang A Unit 2.

During mid-April, the Loy Yang A Unit 2 went offline following an electrical fault with the generator.

The team ran a number of tests and found that the generator rotor had failed.

Since then, a number of engineers and suppliers have worked with AGL to initiate a plan on conducting repairs.

Previously, management had expected that the unit would return to service at the beginning of August.

However, the date has now been pushed back until the second half of September. The delayed repairs are due to “global supply chain issues and the availability of specialised materials.”

AGL stated it will provide an update in the new financial year regarding the financial impact following the extended outage.

Furthermore, it does not anticipate FY23 earnings guidance will be issued before the review of the company’s strategic direction. This is assumed to be completed sometime in September.

AGL share price snapshot

Despite falling today, the AGL share price has zipped 40% higher in 2022.

A boom in energy prices is being driven by the Russian war in Ukraine as well as inflationary movements.

Although, when looking at the past 12 months, the company’s shares are down 7%.

Based on today’s price, AGL presides a market capitalisation of approximately $5.96 billion.

The post Why is the AGL share price heading south on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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