OPINION: By withdrawing guidance, the energy company is conceeding it can no longer be sure how this crisis will play out – but it’s certain it won’t end quickly.
There’s a simple message contained in the decision by Origin Energy to withdraw guidance for the 2022-23 financial year because of
Higher gas sale prices are offsetting rising costs in the gas business, including the cost of energy required to process gas. And higher domestic gas prices are also a tailwind as Origin holds a large fixed-price gas portfolio for the 2022-23 financial year.But it’s a very different story on the other side of Origin’s business, known as the energy market division. Here, underlying EBITDA is set to come in between $310 million and $460 million.
With contracted coal deliveries undershooting, Eraring has been forced to try to buy coal at prices that have been sentAnd even when Origin can buy coal, problems with shipping it by rail are placing further handbrakes on Eraring’s output.. The hit to profit is sizeable and could get bigger as Origin’s June 30 balance date approaches.
Origin shares, which had surged 27 per cent before Wednesday’s announcement, plunged 13 per cent in early trade.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Grateful' Koroisau relieved to earn second Origin chancePanthers hooker Api Koroisau won’t play in Origin I unless injury strikes but the NSW and Fijian representative is just grateful to be back in the fold after his COVID-19 bubble breach last year.
Read more »
Why Kotoni Staggs, the pride of Wellington, is made for State of OriginBroncos star Kotoni Staggs only knows how to play one way, and that's why he's the perfect pick for New South Wales.
Read more »
World ‘desperate for energy’ as crunch hits: ShellThe energy giant’s head of integrated gas and energy solutions, Wael Sawan, sees big opportunities opening up in Australia, though this doesn’t necessarily include Browse LNG.
Read more »
What Grok sees at AGL Energy: UBSUBS analysts reckon the market may be missing one of Mike Cannon-Brookes’ big reasons for investing in AGL Energy.
Read more »
Ray Warren confirms he's called his last gameJUST IN: Legendary commentator Ray Warren has called his last game of rugby league, announcing he will step away from live commentary after 55 years. 9News MORE:
Read more »