Today, the Origin Energy Ltd (ASX: ORG) share price was down 6.62% after the company reported its annual result. At the time of writing, the Origin share price had fallen to $5.50 after closing yesterday’s session at $5.89.
What was in the announcement?
Origin Energy’s revenue was down 11% in the 2020 financial year to $13.16 billion.
According to Origin, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were $3.14 billion which was $91 million less than the 2019 financial year. The company stated that this largely reflected lower gross profit from electricity following the introduction of retail price regulation.
The company’s profit for the 2020 financial year was $83 million, a drop of 93% compared to the company’s profit in the 2019 financial year. According to Origin, this reflected a $1.2 billion APLNG impairment and the effects of a loss making contract.
Underlying profit for the year was $1.02 billion, this was in line with underlying profit in the 2019 financial year. The company stated that underlying profit was stable compared to the prior year with lower corporate and liquid natural gas hedging costs. However, these cost reductions were partly offset by lower margins on electricity.
Origin had free cash flow of $1.64 billion in the 2020 financial year. It stated that cash flow was up 7% and included increased cash distributions from APLNG.
Adjusted net debt was $4.6 billion at 30 June 2020, according to the company this was a $773 million decrease from June 2019. If a lease liability held by the company was included, net debt was $5.2 billion at 30 June 2020.
Origin announced a final dividend of 10 cents per share, unfranked. Its dividend reinvestment plan will remain in place with a nil discount.
When commenting on the outlook for the year ahead, the company discussed the coronavirus, stating; “The path to recovery for the economy and the markets in which we operate will depend on the effectiveness of the health and community responses to contain the virus, and the policy response to mitigate the economic impacts.”
About the Origin share price
Origin is an Australian energy company that produces and distributes liquid natural gas and electricity. It has been listed on the ASX since 2000.
The Origin Energy share price is up 46.67% since its 52-week low of $3.75, however, it is down 35% since the beginning of the year. The Origin share price is down 24.86% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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