Market still awaits update from Origin
Production fell 5 per cent to 62 petajoules, with revenue slipping 1 per cent to $424.7 million. These figures cover its exploration and production arm, but exclude energy generation and sales.
"There was no update on the sell-down, and that is what the market is waiting for," one analyst said, referring to the planned sale of additional equity in the Queensland project.
"We will have to wait for the half- year numbers for that, and an update on capital spending."
Origin is to release its December half-year results on February 21.
Analysts are forecasting year-to-June earnings per share of around 73¢, down from 82¢ last year, following its earlier profit warning, with the focus on any blow-out in the cost of its Queensland gas project along with efforts to protect its position in the retail electricity market.
Origin said the upstream portion of the gas project was 29 per cent complete, the downstream portion 31 per cent complete. To date 209 of 1100 wells for the initial phase of the project have been drilled.
Weather in Queensland has interrupted some work and The Condamine River may effect the Talinga processing plant.
Origin shares rallied 16¢ to close at $12.61, continuing to recover from last year's profit warning.
Frequently Asked Questions about this Article…
Origin Energy reported production fell 5% to 62 petajoules and revenue for its exploration and production arm slipped 1% to $424.7 million for the December half. These figures exclude its energy generation and retail sales businesses.
The market is waiting because Origin has not provided an update on the planned sell-down of additional equity in its Queensland export gas project. Analysts and investors are looking for confirmation of any deal progress when the company releases its half-year numbers.
Origin will release its December half-year results on February 21. Investors should watch for updates on the sell-down, any changes to capital spending, and further detail on project costs for the Queensland gas development.
Analysts are forecasting year-to-June earnings per share of around 73 cents, down from 82 cents last year, following an earlier profit warning from Origin. Attention is on whether project costs or retail market pressures push that forecast lower.
Origin says the upstream portion of the Queensland gas project is 29% complete and the downstream portion is 31% complete. To date, 209 of the planned 1,100 wells for the initial phase have been drilled.
Yes. The article notes weather in Queensland has interrupted some work, and the Condamine River may affect the Talinga processing plant, which could have short-term impacts on project timing.
Origin shares rallied 16 cents to close at $12.61, reflecting some recovery after the company's profit warning earlier in the year.
Everyday investors should watch for signs of cost blow-outs on the Queensland gas project, updates on the planned sell-down of project equity, any change to capital spending plans, and how Origin plans to protect its position in the retail electricity market—all of which could affect earnings and share performance.
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