AGL Energy's purchase of Australia's third-largest coal-fired power station has contributed to a 79 per cent fall in its full-year net profit.
But the company expects good growth in its energy production business in the year ahead due to the addition of Victoria's Loy Yang power station and coal mine to its portfolio.
AGL made a net profit of $114.9 million in the year to June 30, down from $558.7 million in the previous year.
Included in the result was $174 million in costs from the acquisition of Loy Yang.
AGL said its underlying profit for the year to June 30, which takes out one-off items, was $482 million, up 12 per cent from $431 million in the previous year.
The company said it would achieve good growth in its merchant energy business in the 2012/13 financial year due to the additional contribution from Loy Yang.
However, that would be partially offset by continued soft demand for electricity, AGL said.
No earnings guidance was provided.
The company declared a final, fully-franked dividend of 32 cents per share.
AAP