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REPORTING SEASON: Origin Energy (ORG)

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Figure 1: Origin Energy 12 month chart

 

Integrated energy company Origin Energy (ORG) has reported a 61% fall in FY net profit to $378M.

Underlying profit, which is more closely watched by the market, fell 15% to $760M in line with forecasts.

Tough competition and heavy discounting in electricity and gas retailing weighed on revenue.

Underlying earnings  of $1.4B came in below expectations and at the bottom end of management’s own guidance, however the overall result wasn’t as bad as many had feared. Due to market conditions, ORG has not given any FY14 guidance but will provide an update at the company’s AGM in October.

However its FY15 revenue is expected to grow when the Australia Pacific Liquefied Natural Gas (APLNG) project in Queensland comes online.

ORG has also secured a $7.4B loan facility to help fund the project.

An unfranked final dividend of 25c per share will be paid to shareholders on the 27th September. The dividend is unchanged from last year’s payment.

ORG shares have rallied strongly on the back of the result and have outperformed the market this year.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,