What’s going on with the AGL share price today?

The AGL Energy Limited (ASX: AGL) share price is edging higher on Tuesday morning despite some potential bad news.

At the time of writing, the energy company’s shares are up slightly to $7.14.

What’s going with the AGL share price?

Investors have been buying AGL’s shares despite the release of an announcement after the market close on Monday.

This announcement relates to Unit 2 at AGL’s Loy Yang A Power Station in Victoria, which was taken out of service in April due to an electrical fault with the generator.

According to the latest update, the company’s Loy Yang A Unit 2 will not be returning to service as planned this month.

AGL advised that during testing in the final assembly of the generator rotor, a defect in a part was identified. This will require the original equipment manufacturer GE to manufacture a new part in Switzerland.

As a result, the outage is now expected to extend until the second half of October. AGL will make further changes to the outage profile of other units to accommodate this change.

What impact will this have on its earnings?

While the overall outage is expected to have a material impact on AGL’s earnings, this latest day will be less so. That’s because the impact of the latest extension is expected to be offset by a strong performance from its portfolio during August and September as other units returned to service.

Though, investors won’t have long to find out what the impact is. AGL is planning to provide FY 2023 earnings guidance at the end of September, which will reflect the extension of the Loy Yang A Unit 2 outage and the initial outcomes from the review of AGL’s strategic direction.

The post What’s going on with the AGL share price today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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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