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>

<< Aug 2017 >>
MTWTFSS
31 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

Budapest LNG Summit

Budapest LNG Summit is a niche event focused on the up and coming LNG  region of Central & Eastern Europe (CEE).

read more >

03rd OIL & GAS TANZANIA 2017

After a successful Oil & Gas Exhibition in 2016, Expogroup is all set for the 6th OIL & GAS AFRICA 2017…

read more >

LNGgc London

Attend LNGgc London this year, the flagship event of the international LNGgc series.

read more >

CWC World LNG & Gas Series: Asia Pacific Summit

Now in its ninth year, the most established and highly-regarded LNG Summit in Asia Pacific – CWC’s World LNG & Gas Series: Asia Pacific Summit…

read more >