Origin Energy provides update on operating conditions and earnings guidance.

Based on the current market conditions and regulatory environment, Origin Energy Limited (ASX:ORG) has provided the below guidance.

• ORG expects consolidated group Underlying EBITDA to be around the mid-point of the original guidance range of AU$1,950 million to AU$2,250 million.
• Higher earnings from Integrated Gas as Australia Pacific LNG benefited from robust commodity prices, are likely to counterbalance a drop in Energy Markets earnings.
• Integrated Gas and Corporate Underlying EBITDA is projected to be higher at AU$1,700 - AU$1,800 million, which was earlier AU$1,500 - AU$1,650 million. The increase in Integrated Gas and Corporate Underlying EBITDA is driven by the increase in oil and LNG prices.
• The cash distribution to Origin net of oil hedging loss is likely to be ~AU$1.4 billion, which was originally >AU$1.1 billion.

In FY2022, the ongoing challenges with coal supply have been impacting Eraring Power Station. The situation has worsened recently, with material under-delivery of contracted coal compared to expectations, and with Centennial Coal notifying Origin of additional production constraints at its Mandalong mine. Deliveries from this mine is expected to be interrupted during the remaining FY2022 and into 1H FY2023.

The challenges with coal delivery to Eraring Power Station would persist into FY2023. It is projected to result in a substantial rise in coal purchasing costs given high coal prices and constant exposure to high spot electricity prices.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au