Origin profits fall but growth forecast

Origin Energy. Photo / Mark Mitchell

Origin Energy Ltd has reported a big fall to its statutory full year profit, with results affected by the sell-down last year of its interest in the ALPLNG project.

The company - which owns 51 per cent of Contact Energy - reported a net profit of A$612 million ($772 million) for fiscal 2010, a decrease of 91 per cent compared with A$6.941 billion profit the previous year.

But the company said underlying earnings before interest (ebit) and tax was up 9 per cent, at A$896 million.

Origin's statutory profit crashed from the previous year because 2009 included the sell-down in its interest in the Australia Pacific LNG (liquefied natural gas) project, which together with other factors resulted in a benefit of A$6.4 billion.

In the year to June 30, 2010, unusual items totalled only A$27 million.

Underlying ebit including depreciation and amortisation (ebitda) were up 10 per cent, at A$1.35 billion.

The company said it expected continued growth in its underlying business in 2011.

During fiscal 2011, underlying ebitda should increase by about 35 per cent on the previous 12 months, Origin said, while underlying profit should be about 15 per cent higher.

Origin declared a final fully franked final dividend of 25 cents per share.

Net debt in the company had increased to A$2.8 billion while revenue was up 6 per cent, at A$8.5 billion. Earnings per share increased 10 per cent to 66.6 cents.

- AAP, NZPA