Gas export lift fires Origin profit
THE nation’s biggest electricity and gas retailer Origin Energy has posted a 52 per cent boost in profit as it cashes in on higher oil prices from its massive liquefied natural gas export plant.
Underlying net profit from continuing operations rose to $592 million for the six months to December, up from $388 million in the same period a year earlier. The underlying measure strips out one-offs such as writedowns.
The result, released yesterday, was in line with what investors had been expecting.
A stronger performance in Origin’s integrated gas unit offset muted growth in its core energy markets division, which it blamed on increasing retail competition and the cost of providing price relief to customers. Net profit came in at $797 million for the half, a turnaround from a $207 million loss recorded for the same period a year earlier when the company was hit by more than $500 million in writedowns.
“Origin delivered a solid performance over the half with energy markets performing well in a challenging environment and integrated gas making a significant contribution as a result of higher commodity prices and reliable operations from Australia Pacific LNG,” chief executive Frank Calabria said.
The Australia Pacific LNG project in Queensland is a joint venture between Origin, ConocoPhillips and China Petroleum & Chemical Corp.