Origin Energy Limited (Origin) today announced an extensive suite of capital initiatives to strengthen the Company’s balance sheet and maintain an investment grade credit rating.
Origin Chairman Gordon Cairns said, “At current market forward oil prices and exchange rates, Origin’s Net Debt/Underlying EBITDA is expected to be comfortably below 4x in FY2017 and reducing below 3x in subsequent years.
“In addition to raising $2.5 billion in capital, we plan to reduce the Company’s dividend for FY2016 and FY2017, make further reductions in capital expenditure and sell non-core assets to strengthen Origin’s balance sheet.
“These initiatives will lower debt, strengthen the balance sheet and reduce reliance on distributions from Australia Pacific LNG.
“We believe this package of initiatives is prudent in light of current market conditions and strikes a reasonable balance in the best interest of all shareholders,” Mr Cairns said.
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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.
In New Zealand, Origin operates oil and gas projects and holds petroleum exploration acreage.
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.