Origin to take A$815 million APLNG hit

Origin to take A$815 million APLNG hit
Image courtesy of APLNG

Australia’s Origin Energy expects to book an impairment charge of approximately A$1.2 billion ($945.3 million) for the second half of FY2017.

A portion of the impairment charge, amounting to A$815 million will come from the company’s 37.5 percent stake in the Australia Pacific LNG project.

Since the last APLNG assessment at 31 December 2016, while there has been a change in a number of relevant assumptions, the principal change is a reduction in oil price assumptions to $67/bbl from 2022.

APLNG considers a range of assumptions when it reviews the carrying value of its assets, including oil price, AUD/USD exchange rates, discount rates and costs.

Origin also expects an impairment charge of $357 million for Lattice Energy, its conventional gas assets currently held for sale. The sale process is progressing well towards execution by the end of 2017.

As a result, when the first half and second half 2017 impairment charges are aggregated, Origin expects to report a total impairment charge of A$3.1 billion.

To remind, Origin’s impairment in the first half of 2017 of A$1.9 billion comprised of Origin’s 37.5 per cent share of Australia Pacific LNG’s impairment of its assets (A$1.03 billion), and impairment of investments in Browse Basin, conventional exploration assets and Energía Austral.

Share this article

Follow LNG World News

Events>

<< Oct 2017 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening is recognised as the premier end of year gathering for the global LNG industry.

read more >

LNG Pricing, Trading & Risk Management – 3-Day Course

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools…

read more >

LNG BUNKERING MED

The only 3 day course offering theoretical and practical training on LNG bunkering for the Mediterranean market, the syllabus is accredited…

read more >

EAGC 2017

EAGC 2017 sees a new format that combines the conference programme with targeted networking…

read more >