Full Year Results 2002

26 August 2002

Origin Energy announces a 31% increase in net profit to $128.7 million.



Directors’ review (13 pages)
Presentation (42 pages)
Appendix 4B (16 pages)


Origin Energy today announced a net profit after tax of $128.7 million for the 12 months ended 30 June 2002, a 31% increase on the prior year. 

Highlights

  • Total Revenue up 44% to $2,437.1 million. 
  • EBITDA up 33% to $404.6 million. 
  • Net profit after tax up 31% to $128.7 million. 
  • Earnings per share increased 18% to 20.2 cents per share. 
  • Strong balance sheet with net debt to equity of 39% at 30 June 2002. 
  • Fully franked final dividend of 3 cents per share to be paid on 21 October 2002. 
  • Dividend Reinvestment Plan (DRP) to apply at 5% discount.

Commenting on the result the Chairman of Origin Energy, Mr Kevin McCann said, “The company’s strategy has remained focussed on producing steady growth and improved financial performance. This year’s strong result in addition to the growth in the prior two years, demonstrates the success of this focus.”

Origin Energy Managing Director, Mr Grant King said, “This result is particularly pleasing as it sees all areas of the business contributing significantly to an EBITDA of $404.6 million, 33% higher than last year.

The Retail business has increased EBITDA by 161% to $173.5 million, reflecting a full year of contribution from the Victorian electricity retail business and improvement in the LPG business.

Generation has increased EBITDA by 22% to $30.4 million with contribution from the Worsley Cogeneration plant and the Quarantine Power Station which is now on line.

Exploration and Production saw strong gas sales but overall revenues were lower and EBITDA was down by 7% to $186.2 million, due to lower oil production and prices. 

Networks improved EBITDA by 4% to $22.9 million with increased management fees and Envestra distributions.

“Our strategy is concentrated primarily on gas production, power generation and energy retailing with a particular focus on opportunities that leverage value across the company within acceptable levels of risk.” Mr King said.

“This has resulted in further opportunities for improved performance and growth as evidenced by:

  • The successful integration of the Powercor electricity retail business;
  • The acquisition of the CitiPower Victorian electricity retail business in July 2002, adding 260,000 new customers to our business, increasing the customer base to over 2 million, and consolidating Origin’s position as a major energy retailer;
  • The continued development work on the two major new gas resources in the Thylacine and Geographe fields in the offshore Otway Basin, and the recent discovery of gas in the Hovea well in the onshore Perth Basin;
  • Continued growth of the Generation business, including the additional contributions from the Worsley Cogeneration plant and the newly completed Quarantine Power Station;
  • Acquisition of coal seam gas interests in the Fairview and Durham regions, securing the group’s position as the largest developer of coal seam gas in Australia;
  • Construction of the BassGas development, offshore Victoria, which is scheduled to commence in November this year, with first delivery of gas in third quarter 2004; and
  • Development of the SEA Gas pipeline from south-west Victoria to Adelaide to provide markets for the BassGas Project and the Thylacine and Geographe discoveries.

“The combination of strong cash flow and a net debt to equity ratio at year end of 39% has placed the company in a position to fund existing development as well as other opportunities that may arise as the industry continues to deregulate and consolidate.

“On the basis of recent acquisitions, continued improvement in performance within existing businesses and development opportunities already initiated, the company expects to produce further growth in earnings over the next year.”


Contacts

Grant King
Managing Director
Ph: 02 8345 5470
Angus Guthrie
Manager, Investor Relations 
Phone: 02 8345 5558

Origin Energy key financials

  2001/2002 ($m) 2000/2001 ($m) % change
Total revenue 2,437 1,687  44 
EBITDA 404.6 305.2  33 
EBIT 230.7 173.3  33 
Profit before tax 187.9 141.6  33 
Profit after tax 133.6 103.6  29 
Profit after tax and outside equity interests 128.7 98.0  31 
Operating cash flow 299 201  49 
OCAT ratio 13.7% 10.6%  N/A
Capital expenditure 403.2 529  (24) 
Total assets 2,958 2,829 
Net debt 633 727   (13) 
Shareholders equity 1,626 1,328  22
Key Ratios      
Earnings per share 20.2 cents 17.1 cents  18 
Free cash flow(1) per share 40.2 cents 29.7 cents  36 
Total dividend per share(2) 5 cents 4 cents  25 
Net asset backing per share $2.46 $2.26 
Net debt to equity 39% 55%  N/A
Interest cover 5.4 times 5.5 times  N/A
Return on equity 8.1% 7.6%  N/A
Segment Analysis (EBITDA)      
Exploration & Production 186.2 201.3  (7) 
Retail 173.5 66.5  161 
Generation 30.4 25.0  22 
Networks 22.9 21.9 4 N/A

  1. Cash flow available for funding growth and distributions to shareholders 
  2. Final dividend 3 cents per share fully franked, interim dividend 2 cents per share fully franked