Origin posts $1.7 billion loss

Origin Energy has released their latest half year results, citing a $1.68 billion loss.

The company highlighted that the loss was mainly due to a $1.9 billion impairment charge from its assets.

While Origin’s underlying EBITDA increased 32 per cent from $277 million to 1.15 billion, its profit reduced 28 per cent, reaching $184 million. This was due to low oil prices which resulted in lower LNG revenue from Australia Pacific LNG (APLNG).

In addition, Origin’s operating cash flow increased six per cent from $495 million to $27 million.

Origin CEO Frank Calabria said the company made a “solid” operational performance despite being impacted by losses.

“Higher contributions from Origin’s two business units, Integrated Gas and Energy Markets, delivered a $277 million increase in Underlying EBITDA to $1.15 billion,” he said.

“In Integrated Gas, completion of Australia Pacific LNG was a standout achievement. This, along with first gas from the Halladale and Speculant fields in the Otway Basin, delivered a significant increase in production, EBITDA and cash flow.”

The Energy Markets business recorded a $13 million increase in underlying EBITDA to $734 million.

“Energy Markets continued to deliver increasing earnings with the natural gas and electricity portfolios performing well, customer numbers increasing and increased gas and electricity volumes, and higher margins in solar and energy services,” Calabria said.

Integrated Gas also cited an increase to $442 million, boosted by APLNG increasing production by 76 per cent as it begun exports from Train 2. Exploration and production also increased by 12 per cent as the Halladale and Speculant fields came online.

Last year, Origin announced plans to sell its upstream assets, which Calabria said is on track to be completed in 2017. He also highlighted other key developments in the company including the appointment of Lawrie Tremaine, from Woodside Energy, as the new CFO.

The company has a positive outlook for the rest of the 2017 financial year, with its underlying EBITDA guidance increasing from between $2.37 -$2.6 million to between $2.45- $2.6 million.

“Accelerating debt reduction continues to be a key priority for Origin, with adjusted net debt targeted to be well below $9 billion by the end of the 2017 financial year,” Calabria added.

“Upon completion of the expected sale via IPO of the conventional upstream assets, Origin expects a further material reduction in debt.”

Leave a Reply

Send this to a friend