Australia's Origin Energy First Half Loss Widens

Origin Energy Limited on Thursday reported a statutory loss of A$254 million ($182 million) during the six month that ended December 31 as a result of one-off impairment charges.

The statutory loss in the corresponding period last year was A$25 million.

Underlying profit from continuing operations and excluding one-off charges fell to $243m from $308m over the same period a year earlier.

Origin Chairman, Gordon Cairns said, “During the period, Origin continued to take action to strengthen its balance sheet and build further resilience in the current low oil price environment.”

The company declared an unfranked dividend of 10 cents a share, down from 25 cents a year earlier and said may suspend dividends altogether if low oil prices persist.

“As we enter the second half of the year, oil prices have fallen to levels well below expected prices at the time of the Entitlement Offer. Origin will of course pursue all opportunities to achieve ongoing debt reduction. Should the current low oil price environment persist through the second half of FY16, which puts at risk ongoing debt reduction, the company will suspend dividends until appropriate debt levels are achieved,” Cairns said.