PERTH (miningweekly.com) – ASX-listed Origin Energy has warned of a non-cash post-tax charge of between A$1.16-billion and A$1.2-billion for the full 2020 financial year.
The company told shareholders that the non-cash charges related to an updated year-end valuation estimate and were primarily driven by revised commodity price assumptions, the economic impacts of the Covid-19 pandemic, and the progressive transition to a lower carbon energy supply.
“Origin has responded quickly to Covid-19 and the decline in commodity prices, reducing operating costs and capital expenditure, and these actions have improved resilience and helped to mitigate some of the impacts on the business,” said CEO Frank Calabria.
“These factors, and the broader macroeconomic environment, have contributed to our revised medium- and long-term outlook for commodity prices.”
Origin was expected to recognize an impairment to its share of the Australia Pacific liquefied natural gas (LNG) project of between A$720-million and A$770-million, and a non-cash charge of between A$440-million and A$460-million relating to its Cameron LNG project
Calabria said that the company was well positioned over the long term, with a business spanning energy retail, power generation and natural gas, which generated strong cash flow, along with exposure to future growth opportunities in renewable energy and new technologies.