Australia: Origin Posts Strong Results

Origin Energy of Australia announced a Statutory Profit of $980 million for the financial year ended 30 June 2012, up from $186 million reported in the prior year.

The primary factors contributing to an increase in Statutory Profit include a higher Underlying Profit, a gain on dilution of Origin’s shareholding in Australia Pacific LNG and a substantial increase in the fair value of financial instruments, partially offset by a larger impairment of assets when compared to the prior year.

Underlying Profit increased by 33 per cent or $220 million to $893 million. Growth in Underlying Profit was driven by a full year contribution from the NSW energy assets acquired in March 2011, a lower exploration expense and higher commodity prices.

Origin Chairman, Mr Kevin McCann said, “In the past year, Origin has delivered strong growth across its operating businesses.

“In the first full year since the NSW acquisition, the assets have made a strong contribution to increases in earnings and profit. The Company also delivered increased contributions from its Exploration and Production and Contact Energy segments.

“The Australia Pacific LNG project stands to deliver significant value to shareholders over time, and continues to make significant progress towards first LNG in 2015. The two-train $23 billion project has now been fully sanctioned and in July 2012, Origin diluted its shareholding to 37.5 per cent.

“Australia Pacific LNG signed US$8.5 billion of project financing agreements. This, together with Origin’s strong operating cash flow after tax and $4.2 billion in cash and undrawn facilities, provides sufficient liquidity for Origin’s remaining funding requirement for Australia Pacific LNG of approximately $3.6 billion to first LNG for both trains, as well as the ongoing needs of Origin’s business.

“If we achieve the planned dilution in Australia Pacific LNG below Origin’s current shareholding of 37.5 per cent, our funding position will further improve.

“The Board has declared a final fully franked dividend of 25 cents per share, taking total dividends for the year to 50 cents per share, which represents 61 per cent of Underlying earnings per share,” Mr McCann said.

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LNG World News Staff, August 23, 2012