Origin Energy Limited (Origin) expects to recognise a non-cash impairment and capital gains tax expense in its half-year 2022 Statutory Income Statement to be released with half year results on 17 February 2022.

The expected non-cash impairment charge of $190-$200 million relates to the sale of a 10 per cent interest in Australia Pacific LNG. On completion of the transaction, which is expected in the first quarter of calendar year 2022, this charge will be partially offset by the release of a $100-$110 million benefit from the foreign currency translation reserve.

Capital gains tax expense of $170-$180 million is also expected to be incurred from the transaction, net of tax benefit from the utilisation of capital losses. No significant cash tax payment is expected as a result of offsetting tax deductions.

These estimates are subject to finalisation of Origin’s financial statements.

Origin’s intention to sell down a 10 per cent stake in Australia Pacific LNG for $2.12 billion was announced on 25 October 2021. At the time of announcement, Origin said the sale of the 10 per cent interest allowed Origin to crystalise some of the significant value in Australia Pacific LNG, while retaining upside to further value creation through a continuing substantial shareholding.

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