We’ve announced HY19 results with solid performance across the business and an increased profit and dividend.
Our businesses performed solidly during the half, delivering a statutory profit of $796 million. This reflected higher oil linked revenues in Australia Pacific LNG, a stable performance in our Energy Markets business, and lower financing costs.
While delivering a strong shareholder result, we continued to focus on measures to make energy more affordable for our customers, being first in the market to announce flat or falling prices from 1 July for all our customers and announcing further discounts from 1 January for concession customers on standing rates.
Our power stations played a key role in keeping the lights on and putting downward pressure on prices. The impact of greater competition and discounting in our retail business has impacted on earnings, but we believe that the right thing is putting our customers first.
We continued to work steadily towards our emissions reduction target, adding more than 300 megawatts of new solar capacity to our portfolio over the past six months. By 2020, we will have added another 738 megawatts of new renewable energy, which means in just a few years, renewables will have grown from 10 per cent of our portfolio to 25 per cent.
In our gas business, APLNG performed strongly and when combined with higher realised commodity prices, delivered strong cash flows back to Origin. More than 12 months ago, we set out to make our gas operations more competitive and are on track to meet our June 2019 run rate target. We are looking forward to getting back on the ground in the Beetaloo basin during the dry season this year and completing our exploration commitments to more fully understand the opportunity.
Having materially reduced debt, I am delighted to announce the reinstatement of dividends with a fully franked interim dividend. We are also now in a position to pursue the right strategic opportunities, such as our recent acquisition of OC Energy.
I’m really looking forward to this next phase, as we continue to position Origin to support the transition to a cleaner energy future and supporting our customers to do the same.
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