Finance Finance News Origin Energy profit falls 39% as costs rise

Origin Energy profit falls 39% as costs rise

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Origin Energy’s half year profit has dropped 39 per cent due to higher LNG funding expenses and impairments.

The company’s net profit for the six months to December 31 was $322 million, a 39 per cent drop from the $524 million made in the previous corresponding period.

The company said the main reasons for the decrease in statutory profit were the gain on the dilution of its interests in Australia Pacific LNG in the prior corresponding period and higher LNG related funding expenses and impairments over the half.

Underlying profit increased by five per cent to $381 million.

Origin chairman Gordon Cairnes said he was pleased with the company’s improvements in operational performance.

“The half year result reflects the focus we have on improving the performance of our existing businesses,” he said.

“We are pleased to see that there have been substantial improvements in operational performance which is reflected in the strong increase in operating cash flow in the first half.”

Revenue for the half was $7.2 billion, down three per cent from $7.5 Billion in the previous corresponding period.

Origin shareholders will receive an unfranked interim dividend of 25 cents per share, unchanged from the previous corresponding period.