The year also saw some progression in several major projects such as BassGas, Otway and CSG along with the acquisition of RockGas and an interest in New Zealand’s Kupe field.
“The company’s strong cash flows and balance sheet allowed us to take advantage of opportunities to grow the business. These opportunities add new revenue streams as well as scale and diversity which add to the strength of our business,” said managing director Grant King.
“These included the purchase of the minority interests in Oil Company of Australia and in New Zealand the remaining 50% of the Rockgas LPG business, an interest in the Kupe gas field and, most recently, a conditional agreement to purchase 51.2% of Contact Energy.”
Increased oil sales from the Perth Basin and higher gas prices boosted the exploration and production result and offset a significant disruption to production as a result of a fire at the Moomba Gas Plant in January.
The Retail business recorded a 2% increase in EBITDA to $236 million. Tariff increases, colder winter weather and lower LPG purchasing costs more than offset what it described as increasing levels of customer churn and increased electricity purchasing costs.
“The company’s strategy of operating across the energy supply chain delivered earnings growth in an environment of increasing competition and unexpected events,” added King.
A full year contribution from the Mt Stuart Power Station and a one-off tax adjustment boosted Generation EBITDA by 44% to $69 million, while a maiden contribution from the SEA Gas Pipeline also significantly improved the Network EBITDA of $29.8 million which is up 25% on the prior year.
“The Otway Gas Project, contracts for coal seam gas with AGL and QAL and the Kupe Gas Project in New Zealand will drive growth in the longer-term.”
“As a result of these factors we expect that earnings from Origin’s existing business for the coming year will increase consistent with the targeted growth rate of 10-15%. Assuming the Contact acquisition proceeds, its impact on earnings is expected to be accretive at an earnings per share level in the coming year.”
