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ORIGIN ENERGY LIMITED (ORG)

ORIGIN ENERGY LIMITED (ORG)

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General Information
Company Name: Origin Energy Limited
Stock Code: ORG
Website: www.originenergy.com.au
GICS Sub-Industry: Integrated Oil & Gas
Market Cap ($M): 14,131
Equiv. Shares (M): 1,090

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 12.970 $ 12.990 $ 13.100 $ 12.960 $ 12.910 4,241,019 $ 0.060  0.465 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 25th May 2012
12 Month Target Price (average): $17.379
Brokers Surveyed: 8

Company Overview

Business Description:
Origin Energy (ORG) is an Australasian integrated energy company focusing on energy markets in Australia and New Zealand. Origin has diverse operations spanning across the energy supply chain; from gas exploration and production to power generation and energy retailing. Origin also has minor operations in the Pacific, South East Asia, Papua New Guinea, Chile, Indonesia and Kenya.

Strategy Analysis:
ORG looks towards a sustainable approach to developing the growth of the business. The focus is on maintaining its position as a leading Australasian integrated energy company that participates in most segments of the supply chain. The company seeks to deliver market leading performance for shareholders by identifying, developing and operating businesses which deliver value to customers. It also focuses on developing and procuring competitive sources of energy and related products and services to better meet customer energy needs. Origin Energy reported NPAT down 70% to $186m for the year ended 30 June 2011. Key factors contributing to the year-on-year change in the statutory profit included a positive contribution from higher underlying profit offset by a higher impairment of assets, a decrease in the fair value of financial instruments and higher transition and transaction costs related to the acquisition of the Integral Energy and Country Energy retail businesses as part of the NSW privatisation process. Revenues from ordinary activities were $10.34bn, up 21% from last year. Diluted EPS was 19.6 cents compared to 67.4 cents last year. Net operating cash flow was $1.40bn compared to $1.07bn last year. The final dividend declared was 25 cents, taking the full year dividend to 50 cents, in line with 50 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 932.7 83.3 -4.0 15.6 50.0 3.9 100.0
2012  F 920.5 86.8 37.3 14.9 50.0 3.9 100.0
2011  A 633.6 63.2 2.4 23.9 50.0 3.3 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Aurora Oil (AUT) $1,342 M -- 2.1391 1.3989 44.9036 14.3045 5.9631 0.0000 0.0000 0.0000
Origin Energy (ORG) $14,065 M 0.1874 0.1489 0.0206 18.1805 15.8250 15.5056 0.0387 0.0387 0.0387

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ORG 0.89 16.1 1.13 1.94 1.19
Market 0.80 12.1 1.33 1.35 1.68
Sector 1.05 19.1 1.30 1.11 11.2

Directors
Name Position Start Date
Ms Karen Anne Moses Executive Director 25 March 2009
Mr Grant Alfred King Managing Director 18 February 2000
Mr Harry (Kevin) Kevin McCann Non-Executive Chairman 18 February 2000
Mr John Howard Akehurst Non-Executive Director 29 April 2009
Mr Ralph James Norris Non-Executive Director 18 April 2012
Dr Helen Marion Nugent Non-Executive Director 25 March 2003
Mr Gordon McK Cairns Non-Executive Director 01 June 2007
Mr Bruce Gerard Beeren Non-Executive Director 13 March 2000
Mr Trevor Bourne Non-Executive Director 18 February 2000

Management
Name Position
David Baldwin Chief Development Officer
Dennis Barnes Chief Executive Officer Contact Energy, New Zealand
Frank Calabria Chief Executive Officer Energy Markets
Paul Zealand Chief Executive Officer Upstream
Andrew Clarke Company Secretary
Helen Hardy Company Secretary
Andrew Stock Director Executive Projects
Robbert Willink Director Exploration Projects
Carl McCamish Executive General Manager Corporate Affairs
Melanie Laing Executive General Manager People and Culture

Calendar of Events
Date Event
29 April 2013 Report (Quarterly)
15 April 2013 Report (Interim)
21 February 2013 Report (Interim)
29 January 2013 Report (Quarterly)
29 October 2012 Report (Quarterly)
20 September 2012 Report (Annual)
21 August 2012 Report (Prelim)
20 August 2012 Report (Prelim)
27 July 2012 Report (Quarterly)
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