Origin loss linked to low prices
Origin Energy has posted a $1.68 billion loss.
The company pinned the loss largely on a $1.9 billion impairment charge from its assets.
Origin reports that its underlying EBITDA rose by 32 per cent from $277 million to 1.15 billion, while its profit slid 28 per cent, reaching $184 million.
This was blamed on low oil prices resulting in lower LNG revenue from Australia Pacific LNG (APLNG).
Origin CEO Frank Calabria described it as a “solid” operational performance, despite the 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.”
Origin’s Energy Markets business posted 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 reported increased figures in the wake of APLNG increasing production by 76 per cent, while exploration and production also increased by 12 per cent due to the Halladale and Speculant fields coming online.
Calabria says Origin’s plans to sell its upstream assets are on track to be completed in 2017.
The company’s underlying EBITDA guidance has increased 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.”