20 August 2015
Origin Energy Subordinated Notes - Key Financial Ratios
Origin Energy Limited (Origin) today released the following Interest Cover Ratio which has been calculated as at 30 June 2015 (Testing Date) in accordance with the requirements set out in the Origin Energy Subordinated Notes Prospectus dated 1 December 2011.Unless otherwise defined in this notice, capitalised terms used in this notice have the same meaning as defined in the Prospectus.
The Interest Cover Ratio (Underlying EBITDA1,2/Net Interest Paid) is calculated as the ratio of Underlying EBITDA for the relevant six month period to Net Interest Paid for the relevant six month period.
The table below shows the Interest Cover Ratio for each of the six months ended 30 June 2015, 31 December 2014 and 30 June 2014.
Interest Cover Ratio:
|6 months ended 30 Jun 2015 ($m)||6 months ended 31 Dec 2014 ($m)||6 months ended 30 Jun 2014 ($m)|
|Net Interest Paid||184||198||197|
|Interest Cover Ratio (times)||5.8||5.5||5.4|
|Minimum Ratio (times)||>3.5||>3.5||>3.5|
On 26 June 2013 Origin advised an amendment had been made to the terms and conditions of the Origin Energy Subordinated Notes. The definition of Testing Date for the Leverage Ratio calculation used in the determination of Mandatory deferral of Interest Payments (clause 3.6 of the terms and conditions) was amended such that the Leverage Ratio is not tested and reported from 30 June 2013 to 30 June 2016 (inclusive). For more information go to: www.originenergy.com.au/news/article/asxmedia-releases/1498
The Interest Cover Ratio will continue to be tested every six months to determine whether or not a Mandatory Deferral Event exists. A Mandatory Deferral Event will commence during the period to 30 June 2016 (inclusive) if Origin’s Interest Cover Ratio in relation to a Testing Date is less than the Minimum Level (being 3.5 times). A Mandatory Deferral Event will continue until Origin’s Interest Cover Ratio in relation to a Testing Date is at or above the Minimum Level.
For the period after 30 June 2016, a Mandatory Deferral Event will commence if either Origin’s Interest Cover ratio in relation to a Testing Date is less than the Minimum Level, or if Origin’s Leverage Ratio in relation to two consecutive Testing Dates is above the Maximum Level (being 4.0 times). A Mandatory Deferral Event will continue until Origin’s Interest Cover Ratio in relation to a Testing Date is at or above the Minimum Level and its Leverage Ratio has not been above the Maximum Level in relation to two consecutive Testing Dates.
As at 30 June 2015, no Mandatory Deferral Event had commenced.
1. As derived from Origin’s Financial Statements released to the ASX on 20 August 2015 and 21 August 2014.
2. Underlying EBITDA is a non-IFRS measure. This measure is used instead of its equivalent statutory measure as required by the terms of the Prospectus. Non-IFRS measures have not been subject to audit or review.
General Manager, External Affairs
Ph: +61 2 8345 5217
Mobile: +61 427 017 798
General Manager, Capital Markets
Ph: +61 2 8345 5308
Mobile: +61 417 230 306
About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the Company has approximately 6,900 employees and is a leading producer of gas in eastern Australia. Origin is Australia’s largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has one of the country’s largest and most flexible generation portfolios with approximately 6,000 MW of capacity, through either owned generation or contracted rights.
Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia’s largest CSG to LNG projects based on Australia’s largest 2P CSG reserves base.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au