Origin net profit down 61 per cent

Origin has reported statutory profit of $378 million for the financial year ended June 30, 2013, down from $980 million reported in the prior year.

The primary factors contributing to the decrease include a loss on the movement in the fair value of financial instruments, increased expenditure on retail transformation and transition costs relating to the acquired NSW energy assets and a lower contribution from the Energy Markets business. Underlying profit of $760 million decreased from $893 million in the prior year, a reduction of 15 per cent year on year, which is at the lower end of the guidance range provided in February 2013.

Origin chairman Kevin McCann said while a number of external factors and challenges impacted performance of the Energy Markets business during the period, its fundamentals remain strong.

“Delivery of the Australia Pacific LNG project remains a key focus for Origin and I am pleased to report that, due to substantial progress on the Upstream and Downstream components during the year, the project is approximately 45 per cent complete,” he said.

“Origin’s investment in Australia Pacific LNG stands to deliver a step change in earnings and cash flow to support the company’s future growth.”