Australia’s Origin Energy Limited today announced a Statutory Profit of $794 million for the half year ended 31 December 2011, an increase of $930 million when compared with the $136 million loss reported in the prior corresponding half year.
A number of items contributed to the increase in Statutory Profit, including a higher Underlying Profit, a gain on dilution relating to Australia Pacific LNG, an increase in the fair value of financial instruments, lower impairment of assets and lower transition and transaction costs, the company said in a statement.
Underlying Profit for the half increased 61 per cent or $185 million to $489 million, when compared with the prior corresponding half year. The acquired NSW energy businesses made a significant contribution to the increase in Underlying Profit, which also benefited from lower exploration expense and higher commodity prices in the Exploration and Production segment.
Origin Chairman, Mr Kevin McCann said, “ During the half year, Origin made substantial progress on the integration of the acquired NSW energy businesses into our Energy Markets business and achieved major milestones in the development of the Australia Pacific LNG project.
“ The benefits of the acquisition of the NSW energy businesses have resulted in strong increases in Underlying EBITDA and Underlying Profit for the half year.
“ The taking of a final investment decision (FID) on the first phase of the Australia Pacific LNG project was another significant milestone for Origin, and we expect this project to deliver substantial value to shareholders over time.
“In addition, Origin has undertaken a number of funding initiatives during the period and as a result is well placed to fund its share of the first phase of the Australia Pacific LNG project and other committed projects.
“The Board has declared an interim fully franked dividend of 25 cents per share, which represents 55 per cent of Underlying Profit ,” Mr McCann said.
Australia Pacific LNG
FID for the Australia Pafific LNG was taken on the first phase of the project in July 2011. Binding sales agreements were signed with Kansai and Sinopec to complete marketing of the second train. Sinopec also subscribed for additional equity in Australia Pacific LNG, completion of which is subject to government approvals and FID on the second train.
On completion, the agreements are expected to dilute Origin’s interest to 37.5 per cent. Injection of funds by Sinopec into Australia Pacific LNG will result in a deferral of cash calls to Origin for some months following FID for the second train.
“T he Australia Pacific LNG project is progressing on schedule and in line with the currency split estimates at the time of FID for the first phase of the project in July 2011 ,” Mr King said.
“ Marketing is now complete and Australia Pacific LNG has continued to mature its reserves base, with 2P reserves increasing by more than 1,000 petajoules equivalent (PJe) to 12,810 PJe, and 3P reserves increasing to more than 16,000 PJe.
“Australia Pacific LNG remains on track to make a FID on the second LNG train by mid 2012 ,” Mr King said.
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LNG World News Staff, February 23, 2012