PERTH (miningweekly.com) – Oil and gas producer Origin Energy has warned of a A$1.2-billion post tax impairment for the second half of the 2017 financial year.
The company told shareholders on Thursday that it expected an impairment charge on the Australia Pacific liquefied natural gas (APLGN) project, which would result in a A$815-million post-tax impairment for Origin, reflecting its 37.5% shareholding in the project.
The APLNG impairment charge related to a range of issues, including oil prices, exchange rate, discount rates and costs.
Origin said that the company would also record an impairment charge of A$357-million for Lattice Energy, its conventional gas assets currently up for sale.
The impairment charge arose from an assessment of the current carrying value of Lattice against the expected proceeds from a divestment net of estimated costs of disposal. It also partly reflected the cessation of depreciation and amortisation from December 7 last year.
Origin reported that the sale was progressing well with execution targeted by the end of 2017.
The company will publish its full-year results later this month.