Half Year Report to Shareholders for the half year ended 31 December 2013.
Message from the Chairman and Managing Director
For the half year ended 31 December 2013, Origin reported Statutory Profit of $322 million, a decrease of $202 million compared to the prior corresponding period and a 5 per cent increase in Underlying Profit1 to $381 million.
Underlying EBITDA1 increased 3 per cent to $1.08 billion reflecting increased contributions from the Exploration & Production, Contact Energy and Corporate segments, partially offset by a lower contribution from the Energy Markets business.
There have been substantial improvements in operational performance during the first half which is reflected in the strong increase in Group Operating Cash Flow After Tax1 from $461 million to $1.04 billion.
In the Energy Markets business, there have been tangible improvements as the investment in our Retail Transformation program is delivering operational and cash flow improvements. Despite continued competitive conditions, Origin has also achieved a net gain in customers.
Investment and reliability improvements in Upstream assets have delivered increased availability and production as demonstrated by higher production volumes at Otway, BassGas and Kupe basins.
During the half, Origin completed a number of funding initiatives to extend its debt maturity profile and improve its liquidity position. Origin has $6.5 billion2 in existing liquidity, which is substantially more than that required to satisfy the remaining funding requirement for its 37.5 per cent shareholding in Australia Pacific LNG.
As expected, Origin’s cash contribution to Australia Pacific LNG increased to $1.4 billion. The project remains on track for delivery of first LNG in mid-2015, which will deliver a step change in Origin’s earnings and cash flow in the 2016 financial year when the project is delivering LNG under its existing long-term contracts.
The Board has determined to pay an unfranked interim dividend of 25 cents per share, to be paid to shareholders on 4 April 2014.
We continue to progress our four key priorities of improving the performance of existing businesses, delivering Australia Pacific LNG, managing our funding and balance sheet position, and creating growth opportunities for your Company. Thank you for your ongoing support.
- Refer to Glossary.
- As at 31 December 2013. Excluding Contact Energy and bank guarantees.