Market still awaits update from Origin
ORIGIN ENERGY reported flat production and revenue for the December half following the sale of a small slice of its Queensland export gas project along with maintenance at offshore projects in Australia and New Zealand.
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.