UPDATE 1-AGL Energy confirms FY08 earnings guidance

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PERTH, May 12 (Reuters) - AGL Energy Ltd (AGK.AX: Quote, Profile, Research), Australia's largest energy retailer, reiterated on Monday it expects fiscal 2008 net profit in a range of A$330-A$360 million ($311 million-$340 million), in line with a forecast first given last October.

AGL said earnings before interest, taxes, depreciation and amortisation (EBITDA) was expected to be in the range of A$830-A$875 million.

"AGL's businesses have performed well since Dec. 31, 2007, with earnings for the second half influenced by a strong performance from Torrens Island Power Station, predominantly due to a sustained period of extreme weather conditions in South Australia," the group said in a statement.

But the gains have been partly offset by lower-than-expected earnings from its 32 percent interest in the Loy Yang A power station in Victoria, mainly due to weaker electricity pool prices in the state over the summer months, AGL said.

Increased sales and marketing activity had also seen a net gain in customer account numbers since December last year, AGL said.

Sydney-based AGL said the outlook was based on a review of earnings for the year to date and assumed average weather conditions for May and June.

AGL cut its profit guidance in October last year and dropped a forecast for annual average growth in earnings per share of 15 percent over the medium term.

The profit downgrade last year triggered the biggest drop in its share price in 20 years and led to the departure of then managing director Paul Anthony. ($1=A$1.06) (Reporting by Fayen Wong)