“Operationally 2004-2005 was a solid year for AGL," he said.

"Underlying profit increased by 6.9% compared with the previous year and earning per share also increased by 6.5%.”

Johnson said the company expected to maintain the current ordinary dividend of 63c per share.

Adjustments to the reported profit included the net $587.5 million from the sale of AGL’s interest in New Zealand company NGC Holdings Limited (NGC) and the write down of $193 million after tax in the value of the Victorian electricity network.

Johnson said AGL continued its fight against this write down, which was a result of a tightening regulatory environment, declining market values and a disappointing draft decision from the regulator.

“AGL continues to challenge this and a decision from the Essential Services Commission is expected tomorrow,” he said.

“If we are still unhappy and we believe there are grounds for appeal we will consider that option seriously.”

The company also pledged its support for a genuine national energy market.

“Australia must have a national energy market,” said Johnson.

“We operate in a market that is a patchwork of inefficient and different state-based rules and regulations.

“This is an opportunity to deliver efficiencies and reduce costs that will give confidence to the industry to invest in the necessary infrastructure.”

AGL is also looking at increasing its investment in renewable and gas-fired power generation opportunities, including both existing and new plants across all of the eastern states, said Johnson.

“Investment in power generation assets is designed to better manage wholesale price volatility and control our wholesale electricity costs,” he said.

Johnson also said work on the engineering and design (FEED) for the PNG gas pipeline was progressing well and a decision to build was due in mid-2006.