Origin Energy has flagged a write-down of as much as $1.2 billion, citing plummeting oil and gas prices and the world's transition away from fossil fuels.
Origin Energy has become the latest energy giant to take a heavy write-down on the value of its business, flagging a hit of up to $1.2 billion due to plummeting oil and gas prices and the world's progressive transition away from fossil fuels., Origin on Wednesday lowered the value of its business due to the impact of COVID-19 travel restrictions sapping global oil and gas demand, and slashed price forecasts used in its business models out to 2026.
Origin's predictions of lower oil and gas prices could have implications for its plans to develop gas in the Beetaloo sub-basin, 760 kilometres south-east of Darwin. The energy giant announced in April it would pause exploratory drilling works at Beetaloo due to coronavirus, while slashing its spending budget in order to ensure a resilient financial position that could withstand economic uncertainty.
"These actions have improved resilience and helped to mitigate some of the impacts on our business," he said. Origin CEO Frank Calabria says the company's diversified portfolio was well-positioned over the longer termOrigin said there would no change to its guidance for 2020 including underlying earnings of between $1.4 billion and $1.5 billion in its energy markets business.
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.
NRL Players' Poll: Part 2 - Next Origin debutant, six-again rule, captain's challengeIn part two of the 2020 NRL Players' Poll, topics include the new six-again and captain's challenge rules, the return to one referee and discussion of the 2020 State of Origin series.
Read more »
Poll fuels debate over stand-alone Origin series'I’m a fan of reducing the NRL season so if that includes stand-alone Origin, that’s fine.'
Read more »
How pubs can keep you safePubs are at the centre of a COVID-19 cluster growing in Sydney, so what makes them so dangerous and how are they changing to stop the spread of COVID-19?
Read more »
AFL in talks with Queensland Government to base more teams and officials in stateAs the number of COVID-19 cases in Victoria and New South Wales grows, the AFL approaches the Queensland Government about shifting teams north of the border.
Read more »
Deadly WHO coverup continues with hoax inquiry | Sky News AustraliaAnalysis: The World Health Organisation had a chance to make amends for its role in the deadliest coverup in human history when it sent scientists to China to investigate the origins of the coronavirus outbreak. It failed, writes Jack Houghton.
Read more »
Health authorities knew about tower virus cases months agoHealth Authorities knew about a positive coronavirus case in the towers more than two months before the nine towers were locked down. 9News
Read more »