Origin widens losses in FY17

PERTH (miningweekly.com) – Oil and gas producer Origin Energy has widened its statutory loss for the 2017 financial year, from A$628-million reported at the end of 2016, to A$2.22-billion.

The company earlier warned of a A$1.2-billion post tax impairment on the second half of the 2017 financial year, driven by a A$815-million impairment on the Australia Pacific liquefied natural gas (APLNG) project, and a A$357-million charge for Lattice Energy.

Origin on Wednesday reported that underlying earnings before interest, taxes, deprecation and amortisation increased by 49% in the financial year, to A$2.53-billion, driven by an improvement in the company’s electricity and gas portfolios, as well as the ramp-up of LNG earnings and the start of production at the Halladale/Speculant field.

CEO Frank Calabria noted that the APLNG project had made a strong start to operations, producing 10% above nameplate capacity throughout the recent lenders test, and proving its resource and facilities were world-class.

“We’re aware that rising energy prices are hurting many Australian households and businesses. We’re helping those in hardship by making sure they will not pay the recent price increases and ensuring they are on our best offer with no conditions attached,” Calabria said.

Meanwhile, Calabria noted that debt reduction would remain a key priority for Origin in the future, with the company targeting adjusted net debt of below A$7-billion by the end of 2018, pending the divestment of Lattice Energy.