Origin Energy cuts earnings guidance
Apr 16, 2021 11:45:am
Summary The reduction comes following an arbitration order to pay Beach Energy more for gas following a contract price review.
by: Shardul Sharma
Posted in:
Origin Energy cuts earnings guidance
Australia’s Origin Energy on April 16 cut its annual earnings guidance for energy markets following an arbitration order to pay Beach Energy more for gas following a contract price review.
Origin lowered its energy markets underlying Ebitda guidance for 2021 to A$940mn-1.02bn ($728mn-$791mn) from A$1bn-A$1.14bn. The arbitration order is expected to result in an increase in Origin’s cost of supply of A$30mn-A$40mn for 2021, increasing further to A$60mn-A$80mn in 2022 consistent with an expected increase in volume.