Origin widens H1 loss on $1.4bn impairment

PERTH (miningweekly.com) – Oil and gas major Origin Energy has widened its pre-tax loss to $1.6-billion for the six months to December 31, compared with a loss of $154-million in the previous corresponding period, after incurring a $1.4-billion impairment.

Revenue for the half-year increased to $6-billion, from the $5.6-billion reported in the prior comparable period, while underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 32%, to $1.15-billion, reflecting the solid operating performance of the business.

Operating cash flow for the period under review was up 6% to $495-million, while net cash from operating and investing activities reduced by 60%, to $326-million, reflecting the sale of Contact Energy in 2015.

“Our operational performance was solid during the period and a number of important milestones were achieved. The review of the carrying value of all Origin assets led also to a number of impairments that heavily impacted the statutory results,” said Origin CEO Frank Calabria.

“Pleasingly, higher contributions from Origin’s two business units, Integrated Gas and Energy Markets, delivered a $277-million increase in underlying Ebitda to $1.15-billion.”

The Integrated Gas division reported a $305-million increase in underlying Ebitda to $442-million.

During the half-year, the Australia Pacific liquefied natural gas asset increased production by 76% with the start of exports from Train 2. This assisted in record production of 154.3 PJe.