Origin Energy (ASX:ORG) announced its full FY15 results to the ASX, reporting a Statutory Loss of $658 million however Underlying Profit came in at $682 million.
The company’s statutory loss was largely due to the impairment of Origin’s investment in Contact Energy and upstream assets, the non-impact of the recent depreciation of the Australian dollar on the fair value of financial instruments and debt, and interest expense which would otherwise be capitalised if the Australia Pacific LNG project was held by Origin rather than via an equity accounted investment.
Underlying profit came in at $682 million, down 4 per cent on the previous year. Underlying EBITDA came in at $2.15 billion, up only $10 million on last year and was mainly due to increased contribution of $207 million from Energy Markets, offset by lower contributions from Exploration & Production, Corporate and Contact Energy.
Contact Energy contributed $199 million to the Statutory Loss after the impairment of Origin’s investment in that company, $79 million to Underlying Profit and $487 million to Underlying EBITDA.
Group Operating Cash Flow after tax came in at $1.58 billion, a 23 per cent decrease on the prior year, primarily due to higher working capital reflecting the final carbon scheme payment, and the timing of tax instalments.
Origin’s Chairman, Mr Gordon Cairns commented, “We have consistently stated that the 2015 and 2016 financial years are transitional years for Origin, as we complete the final stages of our investment in Australia Pacific LNG.”
Origin’s final dividend of 25 cents per share will be paid on 28 September to shareholders on record by 27 August.
Going forward, the company expects much the same for FY 16 as its Energy Market business matures, there is no contribution from Contact Energy and LNG production in Queensland commences. Due to the significant loss in FY15 and the similar forecast for FY16, Origins share price has suffered in trading today.
Author: Ben Visser
Aug 20, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.