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Figure 1: Origin Energy 12 month chart


Falling energy prices and a lower Aussie dollar make their mark on Origin Energy Limited (ORG)

 Falling energy prices and a weaker Australian dollar were two of the factors that contributed to ORG recording a $25 million loss in the 6 months to the end of December 2014. Taking out the impact of one off items, underlying NPAT fell just over 9% to $346 million.

 Underlying EBITDA was stable because of the contribution from the energy markets business where pre-tax earnings rose by 22%. This increase reflected the sale of gas that has become available as LNG production commenced in Queensland.

 Progress continued to be made by the Australia Pacific LNG project with key milestones during the period being met with production from the first plant or train expected to commence in the middle of the calendar year. Thereafter, the second train is expected to start production in the middle of the 2016 financial year. ORG said that $1.41 billion dollars had been spent on the project during the period. Significantly ORG indicated that project costs are not expected to be materially different from the existing budget.

 An unfranked final dividend of 25 cents per share was declared, which is unchanged compared to the same time last year. The payment will be made on 31 March 2015.


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

Tom Piotrowski, Market Analyst,