EBIT for the first half reached only $1 million compared with $17.3 million in the prior corresponding period.
AGL said the drop was mainly due to lower fees derived from gas storage services at Silver Springs in Queensland and a reduction in gas sales from its Moranbah and Camden gas projects.
AGL’s proved and probable reserves stand at 2176 petajoules.
The drop in upstream earnings came as AGL reported a 51% fall in total overall statutory net profit after tax to $117 million.
Underlying NPAT rose 3% to $232.9 million as strong earnings growth from AGL’s core retail and merchant business were partly offset by lower wind farm development and gas storage fee income.
AGL said it expected earnings growth in the second half and was on track to deliver full-year underlying profit of $470-500 million, in line with previous guidance.