Origin warns of impairment charges
PERTH (miningweekly.com) – ASX-listed Origin Energy on Thursday warned of a non-cash impairment and capital gains tax expense of between $190-million and $200-million for its half-year results.
The expected non-cash impairment relates to the sale of a 10% interest in the Australia Pacific liquefied natural gas (APLNG) project.
Energy major ConocoPhillips exercised its pre-emptive rights in relation to Origin’s sale of a 10% interest in the APLNG project, after Origin in October struck a $2.12-billion agreement with global energy investor EIG to sell a 10% stake in the APLNG project.
On completion of the transaction, which is expected in the first quarter of calendar year 2022, this expected impairment charge will be partially offset by the release of a $100-million to $110-million benefit from the foreign currency translation reserve.
Capital gains tax expense of $170-million to $180-million is also expected to be incurred from the transaction, net of tax benefit from the utilisation of capital losses. No significant cash tax payment is expected as a result of offsetting tax deductions.
Origin has previously said the sale of the 10% interest allowed Origin to crystalise some of the significant value in APLNG, while retaining upside to further value creation through a continuing substantial shareholding.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
The Aluminium Federation of South Africa (AFSA), is the voice of the South African aluminium industry.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
