Business

Delivery of APLNG project a priority as Origin profit falls

ORIGIN Energy will focus on improving performance, delivering first LNG, managing its balance sheet and creating growth opportunities after a fall in first-half profit.

Reporting on its first half position on Thursday, the company said profit attributable to members fell by 39 per cent to $322 million in the six months to December 2013, compared with $524 million in the six months to December 2012.

Revenue fell by three per cent to $7.24 billion in the half-year, compared with $7.45 billion in the previous corresponding period.

The group will pay an interim dividend of 25c per share, unfranked.

Origin chairman Gordon Cairns said the half year result reflected the focus the company had on improving the performance of existing businesses.

"We are pleased to see that there have been substantial improvements in operational performance, which is reflected in the strong increase in operating cash flow in the first half," Mr Cairns said.

"The delivery of Australia Pacific LNG's project is one of Origin's key priorities and good progress continues to be made, with the upstream component 58 per cent complete and the downstream component 62 per cent complete.

"During the half, Origin completed a number of funding initiatives to extend its debt maturity profile and improve its liquidity position.

"Origin has $6.5 billion in existing liquidity comprising committed undrawn debt facilities and cash. This strong liquidity position is substantially more than that required to satisfy Origin's remaining funding requirements for its 37.5 per cent shareholding in Australia Pacific LNG."

Looking to the future after its Curtis Island project is complete, the company has flagged potential LNG exports from a high-risk, high-return offshore well being drilled off New Zealand's South Island.

Speaking after the company's first-half results, managing director Grant King said Origin was looking at opportunities to build its LNG exposure once the APLNG plant started delivering cash after 2016.

The Australian reports that although it was early days in the strategy, the big Caravel prospect off the coast of Dunedin was of a magnitude to support LNG exports if the $50 million-plus well being drilled there came off.

"Having got into the (LNG) business through APLNG and having learned a lot in the process and continuing to learn a lot, it's natural for us to continue to look for other opportunities," Mr King said.

However, he stressed nothing was imminent.

You can read Origin Energy's full report to the market here.

Topics:  aplng, curtis island, gladstone, lng, origin energy, resources




UPDATE: Chemical spill closes road as police investigate death in Gladstone horror crash

A driver had died in a crash on Hanson Rd.

POLICE investigate the death of a 23-yearold in yesterday's crash.

UPDATE: Migaloo ventured past Gladstone today

FILE: Migaloo is expected to cruise past Gladstone this weekend.

All-white humpback whale Migaloo returns

Latest deals and offers

#SaveMarinaJoyce: How ISIS theory took over youtube channel

One young Youtuber accidentally gave rise to a conspiracy theory

Talking whiskey with Jack Daniel’s master distiller

It all comes down to the distillery

SIXTY MILES AHEAD sign with Eclipse Records, prepare new album 'Insanity'

Sixty Miles Ahead sign with Eclipse. Photo Contributed

Sixty Miles Ahead to release new album on Eclipse

Thy Art Is Murder are killing it

See Thy Art is Murder on their killer tour happening right now. Photo Contributed

We talk with Thy Art is Murder about touring, babies, and new music

Date announced for Prince tribute concert

A Prince tribute concert will take place later this year

Matt Damon is taking a break from acting

Matt Damon is taking a break to spend time with his family

Queensland's $1 town goes under the hammer today

The township of Yelarbon is up for sale.

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles