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
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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.
EnergyOrigin Energy asked to pay Beach more for gas supply, shares slump
ReutersArundhati DuttaShruti Sonal
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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.