Energy provider AGL expects its full year underlying profit to swell to up to $720 million, buoyed in part by a recovery in demand for electricity among residential customers.
The recent acquisition of Macquarie Generation and a slowdown in weaker demand among residential electricity consumers are expected to help boost earnings.
Underlying profit is forecast to rise to between $650 million and $720 million for 2015/16, up from $630 million last financial year.
AGL acquired Macquarie Generation in September 2014 and says the assets are performing well.
Chairman Jerry Maycock told shareholders at the company's annual general meeting on Wednesday that AGL was in a strong financial position.
But he downplayed the prospects that AGL may soon consider returning capital to shareholders or paying higher dividends.
"Whilst the prospect of generating cash surplus to foreseeable requirements is encouraging, the board considers that it is premature to encourage any such speculation," Mr Maycock said.
Mr Maycock said AGL first had to deliver on forecasts, maintain a strong balance sheet and a strong credit rating to fund investment in growth projects.
"If and when that is achieved we will carefully weigh up all the options available to maximise the value of the company," he said.
Mr Maycock also told shareholders that AGL would not acquire any further coal-fired plants, nor extend the technical lives of its existing coal-fired generators.
He said Australia needed a coherent national plan and the support of relevant government policies to "decarbonise" Australia's power generation.
Mr Maycock said profits and cash flow from coal-powered generators would enable AGL to continue to invest in renewable assets.
AGL booked a net profit after tax of $218 million in fiscal 2015, down 62 per cent on the prior year.
Shares in AGL were 52.5 cents, or 3.2 per cent, lower at $15.705 at 1128 AEST.
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