The Origin share price fell around 9% today after announcing its price review outcome and update on FY21 guidance.
The energy business has been engaged in a price review for gas purchased from
Beach Energy Ltd’s(ASX: BPT) Otway Basin fields, which was referred to arbitration.
Origin said that the arbitrator has now issued a partial award and on the basis of that decision the new gas price is likely to be materially above Origin’s expectations and recent comparable wholesale contracts. The outcome is expected to result in an increase in Origin’s cost of supply of $30 million to $40 million for FY21, increasing further to $60 million to $80 million in FY22 consistent with an expected increase in volume.
EnergyOrigin Energy asked to pay Beach more for gas supply, shares slump
ReutersArundhati DuttaShruti Sonal
3 minutes read
The logo of Australian energy company Origin is pictured in Melbourne, Australia, July 3, 2016. REUTERS/Jason Reed
Australia s Origin Energy Ltd (ORG.AX) cut its annual profit guidance for energy markets on Friday, after an arbitrator ordered it to pay Beach Energy (BPT.AX) more for gas supply following a contract price review.
Origin shares fell nearly 9% to hit their lowest in more than five months while Beach Energy climbed more than 6% to touch a two-month high, following the news on gas supply pricing from Beach Energy s Otway Basin fields.
Australia shares poised to wrap up fourth week of gains on muted note reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
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Goldman reaffirms its conviction buy on this ASX share on Yallourn shutdown
Brendon Lau | March 12, 2021 3:43pm |
More on: Image source: Getty Images
The decision to close the Yallourn power station years ahead of schedule is getting Goldman Sachs more excited about this ASX share on its conviction buy list.
EnergyAustralia sent shockwaves through the energy market and the Morrison government when it said it will close the coal-fired power station four years ahead of forecast.
The move is backed by the Victorian state government but has riled up the federal government who warned of higher power bills.
Origin share price to benefit from Yallourn