Australia's AGL Energy reaffirms '08 profit forecast

PERTH, May 7 (Reuters) - AGL Energy Ltd (AGK.AX: Quote, Profile, Research, Stock Buzz), Australia's largest energy retailer, reiterated its 2008 profit forecast on Wednesday and said it was on track to meet it.

Underlying net profit in the year to June 30 is expected to be between A$330 million and A$360 million ($314 million and $343 million), AGL said in a statement.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to be between A$830 million and A$875 million, AGL said.

AGL said it has refinancing requirements of about A$380 million and an active programme is underway to cut its debt by between A$600-A$700 million to reduce its gearing.

AGL cut its profit guidance in October last year and in December dropped a forecast for annual average growth in earnings per share in the three-to-five year period of 15 percent.

The profit downgrade last year triggered the biggest drop in its stock in 20 years and led to the firing of then managing director Paul Anthony.

Shares in AGL, which have fallen 3.2 percent since the start of the year, were up 0.7 percent by 0341 GMT, compared with a 0.96 percent gain in the broader S&P/ASX 200 Energy index .

AGL, which plans to sell its stake in oil and gas fields in Papua New Guinea, has said it would focus on expanding its renewable and gas-fired generation capacity.

The company has also been aggressively boosting its stakes in gas fields amid rising gas prices on the eastern coast of Australia to reduce its purchases of gas on the wholesale market for sale to its retail customers and for use in power generation. ($1=A$1.05) (Reporting by Fayen Wong)