Australia’s Origin flags $416 million impairment hit

Australia’s Origin Energy, the owner of a 37.5 percent stake in the Australia Pacific LNG project, expects to book a post-tax impairment charge of A$533 million ($416.4 million) for its half-year results.

The aggregate charge includes a non-cash writedown of A$360 million for the company’s Ironbark gas field, due to a downgrade in Ironbark reserves and a revised development plan, Origin said in a statement on Thursday.

“The reserves revision follows a detailed assessment of the Ironbark gas field applying updated assumptions consistent with the technical review of Australia Pacific LNG’s reserves carried out in June 2017,” it said.

The carrying value of the Ironbark gas field development post the impairment is expected to be A$279 million.

Origin also expects to book a post-tax impairment charge of A$173 million, as a result of recognising Lattice Energy earnings from July 1, 2017 up to the Jan. 31, 2018 completion date.

The sale of the company’s conventional upstream oil and gas business, Lattice Energy was completed on January 31.

Origin will release its half-year results on February 15.