Origin Energy falls to lowest since 2008 after posting loss

JAMES PATON

SYDNEY (Bloomberg) -- Origin Energy Ltd. plunged to the lowest intraday price in seven years after posting a full-year loss on asset writedowns and accelerating cost cuts amid a decline in crude prices.

Australia’s biggest electricity retailer had a loss of A$658 million ($484 million) for the 12 months ending in June, following a profit of A$530 million a year earlier, the Sydney-based company said Thursday. Excluding one-time items, profit fell 4% to A$682 million. Shares slumped as much as 7% to A$9.20 in Sydney, the lowest in intraday trade since 2008.

“The significant fall in oil price, if sustained at current levels, will result in lower growth in cash flow and earnings than previously expected,” Origin said.

Origin took a charge of A$705 million partly due to writing down the value of oil and gas assets amid a slump in crude, the company said. The downturn in energy prices comes as Origin prepares to start a A$24.7 billion gas export project on the country’s east coast with ConocoPhillips.

The remaining cash contribution to the LNG project will increase by A$550 million to A$1.8 billion due to lower revenue and oil prices, the company said. Origin started a program to reduce A$200 million in costs in the financial year through June 2017, it said.