Origin Energy Limited (Origin) today announced a 15 per cent increase in Underlying Profit to $673 million for the financial year ended 30 June 2011, when compared with the prior year.
Significant contributions to the increase in Underlying Profit came from the newly acquired NSW energy businesses as well as from investments Origin has made in its Generation and Exploration and Production businesses during the past two years.
The growth in Underlying Profit is accompanied by a 32 per cent increase in Underlying EBITDA to $1,782 million and a 64 per cent increase in Operating Cash Flow After Tax to $1,585 million demonstrating the strength of Origin’s underlying business.
Statutory Profit for the year was $186 million, down from $612 million in the prior year. A number of items including transition and transaction costs, impairments and a decrease in the fair value of financial instruments resulted in the decrease in Statutory Profit.
Origin Chairman, Mr Kevin McCann said, “ During the year, Origin acquired a portfolio of NSW energy businesses, elevating the Company to a position as Australia’s leading energy retailer with one of the country’s largest and most flexible portfolios of owned and contracted generation. The acquisition has provided strong initial contributions to Underlying Profit and cash flow.
“ In July 2011, we took a Final Investment Decision in respect of the Australia Pacific LNG CSG-to-LNG project. Origin’s 42.5 per cent share of the first phase of the project requires investment of around US$6 billion over the next four years .
“ As a consequence of these decisions, Origin undertook a number of major capital raising activities in both debt and equity markets. The funds raised will meet ongoing capital expenditure requirements of the business and preserve Origin’s balance sheet strength. Equity and debt markets showed strong support for these initiatives.
“ Origin is actively managing and will appropriately add to its existing debt facilities to continue to hold sufficient liquidity to cover forward contributions to Australia Pacific LNG and the growth of the balance of Origin’s business.
“ The Board has declared a final fully franked dividend of 25 cents per share, taking total dividends for the year to 50 cents per share, which represents 70 per cent of underlying earnings ,” Mr McCann said.
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Source: Origin Energy, August 23, 2011;