Origin reaffirms guidance
Origin Energy Limited (ORG) reaffirmed its profit guidance for FY10. The company said based on performance for the first quarter and current economic conditions prevailing, it expects the underlying profit for year to be around 15% higher than the prior year.
Origin posted a profit of $530 million in FY09.
Chairman Kevin McCann said the company was in a strong financial position with access to $4.4 billion of cash and undrawn committed debt facilities, as of 30 September 2009.
“In the first quarter, operating conditions and business performance in Australia has been broadly in line with expectations,” Mr McCann said.
“In New Zealand, conditions for Contact Energy remained challenging in the first quarter as dam levels in the South Island remained high, depressing wholesale electricity prices.”
Speaking at the company’s AGM managing director Grant King also said the recent passage of the Renewable Energy Target legislation would drive significant investment in renewables technologies and that Origin has positioned itself to respond to the target with a portfolio of renewable energy supply, including wind, geothermal and solar.
Mr King also said the APLNG joint venture between Origin and ConocoPhilips is working effectively towards the development of a CSG to LNG project in Queensland.
“APLNG has secured a site for development of its LNG processing facility at Laird Point on Curtis Island in the Port of Gladstone,” he said.
“The project continues to target final investment decision by the end of 2010 with production commencing at the end of 2014.”
As at 1426 AEDT, Origin shares were up 33c to $16.00.
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