Origin Energy
Origin Energy (ORG) is a conservatively managed energy group with an established portfolio of operating businesses in energy generation, as well as a mix of alternative energy reserves and projects, including large Coal-Seam-Gas reserves, LNG development, and renewable energy. It was listed in February 2000 following the demerger of Boral Group's energy businesses. Origin is a vertically integrated and its operations include: exploration and production; power generation; energy retailing and trading.
Recent Announcements
Origin has said its underlying profit for the financial year to 30 June 2010 was up 10 per cent to $585 million. The result includes expenses associated with an expanded level of domestic offshore and international exploration.
Excluding these expenses, underlying profit was up 15 per cent to $609 million for the 2010 financial year, the company said. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was up 10 per cent to $1.35 billion, while underlying earnings per share (EPS) rose 10 per cent to 66.6 cents.
Operating cash flow was up 21 per cent on the previous year to $965 million.The company declared a full-year dividend of 50 cents a share, unchanged from the previous year.
Ethical Update
Origin has an integrated safety and environmental management systems in place. Origin has also undertaken a number of initiatives to minimise greenhouse gas emissions, such as the AGO GGAP Program, funding solar photovoltaic research, energy efficiency programs and commercial arrangements,
such as cogeneration and landfill projects. Origin Energy is a leader in the provision of Green Power to retail electricity consumers and is considered by environmental NGO groups as a market leader.
Origin operates four power stations and has interests in a portfolio of cogeneration plants which supply electricity and steam under long-term contracts. The company is also developing a set of renewable technology options which produce power with low or no greenhouse gas emissions. These include: SLIVER technology and hot rocks via a 14.3% interest in Geodynamics.
Contact Energy, 52% owned by Origin, said it has completed construction of a NZ$100m, 23-megawatt geothermal binary plant three weeks ahead of schedule and under budget. The power station will provide enough baseload renewable energy to power about 23,000 homes. Tauhara One is the first project in Contact's NZ$600m current investment program to be completed. (Source: Ethical Investor June 2010)
Financial Update
Estimated Dividend Yield: 3.2%
Franking: 100%
1 Year Performance: 3.40%
Last Price: $15.60
Fair Value: $24.85
Financial figures are as at 23 August 2010 and are subject to change (Source: Morningstar).
Disclaimer
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