Origin unfazed by low oil prices
Sydney-based Origin Energy, the holder of a 37.5 percent stake in the Australia Pacific LNG project, said it remains confident in its robust financing arrangements during the low oil prices period.
In a statement, issued to the Australian stock exchange on Monday, Origin’s managing director, Grant King clarified the companies financing arrangements, noting the company can withstand a prolonged period of low oil prices.
Origin confirmed it has in excess of A$6.5 billion of committed undrawn debt facilities and cash which it considers sufficient to support its remaining contributions to the APLNG project that has recently shipped its first cargo of liquefied natural gas. Currently, Origin has A$500 million of drawn bank debt.
The company noted it has no material refinancing requirements until the financial year 2019, and that earnings from existing businesses have minimal exposure to oil price.
The stock exchange filing reveals that Origin expects the remaining contributions to Australia Pacific LNG to be within the prior guidance of A$1.8 billion.
LNG World News Staff