16 August 2017
Full Year Results 2017
Operational performance drives solid underlying earnings uplift; $3.1 billion impairment charge
Origin Energy Limited (Origin) today announced its FY2017 results including a Statutory Loss of $2.22 billion, principally driven by an impairment charge (post tax) of $3.1 billion.
Underlying EBITDA increased $834 million or 49 per cent to $2.53 billion, driven primarily by an improvement in the electricity and gas portfolios, the ramp up of LNG earnings and commencement of production at the Halladale/Speculant field.
Underlying Profit of $550 million increased by $185 million or 51 per cent primarily due to higher Underlying EBITDA. Net cash flow from operating and investing activities (NCOIA) increased by $163 million or 13 per cent to $1.38 billion.
|Statutory (Loss)||($2,226) million||($628) million|
|Statutory EPS||(126.9) cps||(39.8) cps|
|Underlying profit||$550 million||$365 million|
|Underlying EPS||31.3 cps||23.2 cps|
|Underlying EBITDA||$2,530 million||$1,696 million|
|NCOIA||$1,378 million||$1,215 million|
|Final dividend unfranked||Nil||Nil|
Origin CEO, Frank Calabria said, “This year, we’ve made good progress towards our commitments, delivering a $1 billion reduction in debt and improving business performance.
“Our operational performance was solid driving increases in Underlying EBITDA and Underlying Profit. However, the full year statutory result was significantly impacted by a non-cash impairment charge.
“In Energy Markets, our electricity business is performing well, and our natural gas portfolio remains a core differentiator. Australia Pacific LNG has made a strong start to operations, producing 10 per cent above nameplate capacity through the recent Lenders’ Test, proving its resources and facilities are world class.
“We’re aware that rising energy prices are hurting many Australian households and businesses. We’re helping those in hardship by making sure they will not pay the recent price increases and ensuring they are on our best offer with no conditions attached. We’re also behind the push to simplify energy and help customers more easily compare offers.
“Bringing energy prices down will require a whole of industry response, including networks, generators and retailers. Origin is taking action to put downwards pressure on prices by increasing our supply of low-cost renewables to more than 25 per cent of our generation mix within three years, and boosting generation from Eraring.
“We will continue to advocate for policy certainty, particularly the adoption of a Clean Energy Target as the critical action needed to stimulate further investment in new supply and deliver a genuine reduction in prices for Australians.
“We have made good progress this year and we are now focused on continuing this momentum. We operate in an environment where customer, shareholder and community expectations are evolving rapidly. We are committed to meeting those expectations by being more responsive, efficient and adaptable. I’m confident if we do this we can continue to leverage our core strengths, grow new businesses and transform our culture to position Origin for success,” Mr Calabria said.
Origin Chairman Gordon Cairns said, “Given our primary focus on reducing debt, we have determined not to pay a dividend for the second half of 2017. We are acutely aware of the importance of dividends to many of our shareholders and this decision was not taken lightly. The Board is of the view that the suspension of the dividend is in the best interests of all shareholders at this time.”
|Business segment||FY2017 ($m)||FY2016 ($m)||Change ($m)||Change (%)|
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