Half Year Report to Shareholders for the half year ended 31 December 2011.
Message from the Chairman and Managing Director
For the first six months of the 2012 financial year, Origin has delivered a very strong financial result, made substantial progress on integrating the NSW energy businesses acquired last year, and passed major milestones in the development of the Australia Pacific LNG project. The half year performance demonstrates the strength and value inherent in Origin’s portfolio of assets.
For the half year, Origin recorded a Statutory Profit of $794 million, an increase of $930 million when compared with the $136 million loss in the prior corresponding period. The benefits of acquisition of the NSW energy businesses are clearly shown in the strong increases reported in Underlying EBITDA and Underlying Profit.
Origin’s Underlying EBITDA was up 41 per cent to $1,157 million and Underlying Profit rose 61 per cent to $489 million as earnings increased primarily due to a six month contribution from the acquired NSW energy businesses and a lower exploration expense.
Origin undertook a number of funding initiatives during the period and, as a result, we are well placed to fund our share of the first phase of the Australia Pacific LNG project and other committed projects.
As disclosed to the market in February 2012, Origin has revised its reporting segments, a change reflected in the results presented in this report.
The Board declared a fully franked interim dividend of 25 cents per share paid to shareholders on 30 March 2012.
Based on prevailing market conditions, Origin restates the guidance of August 2011 for an increase of around 35 per cent in Underlying EBITDA and an increase of around 30 per cent in Underlying Profit for the 2012 financial year when compared with the prior year.
Origin continues to deliver on expectations, and has built a business portfolio that will create significant growth opportunities in the future.
In this reporting period there has also been some media attention on the coal seam gas industry. Our forthcoming Sustainability Report addresses some of these issues and in the meantime, there is considerable information available on the project website www.aplng.com.au.